TitlePLUS Times
Vol 8. no. 2
March 2005

Download PDF file.

Articles

Outstanding Building Permits in City of London
The City of London has a free Web site on which you can search for open building permits that require inspections from the city before they can be closed.

Although the TitlePLUS Program does not always require you to conduct a search of Building Dept. records,¹ the City of London is following up on the open permits and even where insurance coverage exists, purchaser-clients often find it annoying to learn after their deal closes that their property has an open permit which the vendor could have been forced to resolve before closing. Accordingly, if you want to conduct the search, you can go to http://www.london.ca/Planning/ Building/permitappservice.htm to see whether there are any outstanding building permits on the subject property.

If you find open permits which will not be resolved by the vendor before closing, please enter them in your TitlePLUS application, either as exceptions to coverage or as "insure over" requests, depending on the circumstances.

Comparing the New & Old Limitations Acts: A Reference Tool
An excellent table summarizing the limitations and notice periods under the new and old limitations legislation is available at www.practicepro.ca/ limitations. A condensed, one-page version of this table is also available in pdf format on the same site.

Multiple Properties but one Mortgage? TitlePLUS Endorsement Helps
On occasion, lenders require mortgage security on more than one property for the same loan. For instance, if a client is buying a recreational property, the mortgage lender may wish to obtain a first mortgage on that property, and a second mortgage on the client's principal residence, for the same principal amount. In another fairly common scenario, a client buys two or more properties for income or investment purposes, and mortgages all the properties to the same lender, for the same principal amount. This principal amount represents the maximum that the mortgage lender will advance on the security of all the mortgaged properties.

If the properties are all in one jurisdiction, you may register only one mortgage, containing the legal descriptions of all the properties. If the properties are in different jurisdictions, you will register more than one mortgage, each for the same principal amount.

In this situation, you may now be eligible to obtain a TitlePLUS policy on each mortgaged property for the mortgage lender, with each Policy Amount equal to the full principal amount shown on the mortgages. For further information about obtaining coverage in this situation with an Aggregation Endorsement, please contact a TitlePLUS Underwriter.

Mortgage-Only Policies where Non-Arm's Length Transfers
Lawyers are often retained to prepare and register Transfers between spouses or other family members, and to register a new mortgage immediately following the Transfer. This may occur as part of a separation agreement between spouses, or for other reasons. In many cases, the consideration paid for the Transfer is nominal, or less than the market value of the property (for example, one-half of the estimated market value where a separated spouse is purchasing the half interest of the other spouse). In this situation, your client may instruct you to obtain TitlePLUS coverage for the mortgage lender, but not for him/herself as transferee of the property.

We are pleased to announce that you can now obtain coverage for the mortgage lender only in this situation, for the face principal amount of the mortgage, if the transfer is:

1. Between spouses (including separated spouses) or family members; and
2. For no consideration, natural love and affection, nominal consideration, or consideration substantially less than the market value of the property.

Tips for TitlePLUS Users

TitlePLUS News from LAWPRO

• Shaun Andrews, Marketing Assistant
• Jen Cavanagh, Analyst

TitlePLUS 2005 Conferences
Did you receive your invitation yet?

The TitlePLUS 2005 Conferences will take place as follows:

Windsor	April 12
Kingston	April 19
Orillia	May 5
Thunder Bay	May 17

To RSVP or for more information, please contact ForMost Events at 1-866-870-0008 or e-mail formostevents@on.aibn.com.

We look forward to seeing you at one of the Conferences!

TitlePLUS Times updates real estate professionals about TitlePLUS developments and related changes in conveyancing. Comments and suggestions are welcome and should be forwarded to:

TitlePLUS
One Dundas Street West
Suite 2200, P.O. Box 75
Toronto, ON M5G 1Z3
Tel: 1-800-410-1013 or (416) 598-5899
Fax: 1-800-286-7639 or (416) 599-8341
E-mail: TitlePLUS@LAWPRO.ca
www.TitlePLUS.ca
titleplus.lawyerdonedeal.com

¹ Please see the TitlePLUS Summary of Searches and Instruction Sheets for more details on when specific searches are required.

Back to TitlePLUS Times