Residential title insurance coverage for lenders includes:
- Not having a valid mortgage in the specified priority
- Failure to register a required document for the transaction
- Construction liens contracted for and commenced after the policy date not funded in whole or in part by the proceeds of the mortgage
- Forgery
- Restrictions on title which allows the mortgage to be divested, a lien for liquidated damages, or a private mortgage or assessment
- Breaches of a restrictive covenant
- Encroachments or easements onto an adjoining property
- The inability to use the land as a residential property due to mineral rights, restrictive covenants, or easements
- Breaches of the applicable zoning by-law
- Not having the municipal address as described in the policy
- The lawyer failing to advise the mortgage lender that the transaction does not comply with legality of interest rate; and invalid, unenforceable or lack of priority of the mortgage
- Changes in the rate of interest or addition of unpaid interest to the principal balance of the loan
- The unenforceability of the mortgage or guarantee contained in the mortgage
- Someone else having a right of approval over a future purchaser or occupant
Please refer to the policy for full details, including actual terms and conditions.