The following is a real example of how Chicago Title was able to offer coverage over an issue, allowing a deal to close on time and without extra costs to the vendors or purchasers.
We received a call from Arpan*, the vendor’s lawyer, asking if we might be able to insure over a title issue. Arpan’s clients were selling their detached home which they had bought new from a builder back in the 80’s.
The spacing of the houses in the subdivision is such that in order to perform maintenance on the eaves troughs / roof, the homeowner has to access the back yard of their neighbour. This is not an uncommon occurrence, normally a maintenance easement is registered by the builder to guarantee the required access.
The subject property had the maintenance easement registered on title, but unfortunately the builder failed to register it on the neighbour’s property. Of course, this caused concern for the purchaser’s lawyer who requisitioned that an easement be registered against the neighbours property.
Instead of having to go through the potentially lengthy and arduous task of having the maintenance easement registered on the neighbouring property, the vendors were able to provide the purchasers with a statutory declaration to the effect that they have accessed the neighbour’s yard for maintenance without issue since they have owned the property. Chicago Title was comfortable providing full coverage to the institutional lender and an Identified Risk Endorsement to the purchasers providing coverage in the event the neighbour attempted to deny them access, as well as marketability coverage so that when the purchasers go to sell the property, Chicago Title will agree to provide the same insurance over the issue to the next purchasers.
Needless to say, all parties were happy and the deal closed on time and without issue. Yet another example of how Title Insurance not only protected the homebuyer from unknown risks, but also can save them time and money by providing the right coverage over certain known issues too!
DISCLAIMER *The name and some identifying facts have been changed in order to protect the identities of the parties involved.