Multi-family endorsement helped a client save over $105,000!


It’s of utmost importance for lenders and lawyers to ask the right questions when closing a real estate transaction. This helps them ensure the right title insurance coverage for their clients.

For instance, it’s good to know if the property is a duplex, triplex or any type of plex. Does it include basement apartments? Is it a multi-family residence, and so on? If it is the latter, does it require the Multi-Family Endorsement to optimize the coverage afforded under the policy? This is how selecting the correct coverage for a multi-family residence could safeguard the Insureds and validate their claim in the future.

Claim Summary:

In July 2018, the Insured acquired the title to their property in Ontario. The Insured was also issued the Owner’s Title Insurance Policy underwritten by the Company.

A year later, they received an Order to Comply from the City related to prior unpermitted construction and renovations resulting from an inspection in May 2019.

The Chicago Title Resolution:

Chicago Title accepted the claim; an engineer’s report was ordered and received. The company decided to pay the max of the policy. Though the policy amount was determined at $90K, the maximum insured amount was $180K.  Chicago Title obtained an appraisal that valued the property between $95K and $105K. We, therefore, paid the maximum amount of $105K.

(Under Covered Risk 23:)

You are forced by a Governmental Authority to remove or remedy your existing structures or any part of them – other than boundary walls or fences – because any portion was built without obtaining a required building permit from the proper Governmental Authority.

Title insurance from Chicago Title can provide peace of mind with the knowledge that your client’s interests are fully protected.

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