Showing posts tagged with: Underwriting
Back-alley issue
29Mar
Back-alley issue
by Kerry MalcolmResidential

Back-alley issue

 

We were preparing title insurance for the sale of commercial property when our title search came back with an unusual problem. The property, in a major city, had laneways attached to it, but no record of if those laneways belonged to the property or not. Without clear ownership, a third party could come in and block access to it.

The vendors had always used the laneways when they owned the property, but the purchasers were worried. They requisitioned the vendor’s lawyer to solve the issue by close of sale, and the vendors were feeling the pinch of all the work and cost needed to get it fixed.

But one of our experienced underwriters spoke with the vendors and got them to make a declaration that they’d always been able to use the laneways. We used that to create a custom endorsement to protect the purchasers if someone ever tried to restrict their use of the laneway.

Thanks to our customized coverage, the deal closed on time, with both sides saving a bundle. That’s one of the great advantages of having people on the ground who know the area. Custom problems need custom solutions, which are exactly what CTIC provides.

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A Builder’s Oversight Almost Cost the Sale
24Sep
A Builder’s Oversight Almost Cost the Sale
by Kerry MalcolmResidential

A Builder’s Oversight Almost Cost the Sale

 

It started with a call from Arpan. He was a lawyer and his clients were selling their house, which they had bought new from a builder back in the 80s. In their subdivision, the houses were spaced so closely together that to do any maintenance work on the eavestrough or roof, the homeowner had to access their neighbour’s backyard.

This comes up surprisingly often. Normally, the builder registers a maintenance easement to provide access to the other property. But it turned out the builder had forgotten to, and Arpan’s clients were in a bind. The purchasers of their home were demanding they get the easement themselves, a long process that would take time Arpan and his clients didn’t have.

Arpan’s clients could provide a declaration they hadn’t had trouble accessing the neighbour’s property since they’d moved in. That was enough for us, and we got to work. CTIC provided full coverage to the purchaser’s lender; Identified Risk Endorsement to the purchasers themselves, in case the neighbour ever tried to deny access; and marketability coverage on the title, so the protection passes to whoever buys the home next as well. Thanks to that security, the deal went through without a hitch.

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