Commission Insurance protects you if a firm residential real estate transaction does not close for reasons beyond your control. It will pay whatever commission was owed to you up to the limit of insurance that you have purchased.
Is Commission Insurance the same as what my Regulator offers?
No. We protect transactions that have failed. Your regulator most likely offers protection against bankruptcy of your brokerage firm holding your commissions in trust.
How much Commission can I protect?
We offer an insurance limit of up to $10,000.
When do I buy coverage?
You buy the coverage once the transaction becomes firm. We advise that you buy coverage as soon as possible after the firm date since you need to provide us with a warranty that you do not know of any circumstances that could cause the transaction to fail.
How long is coverage valid for?
There is a maximum of 6 months coverage period. In other words, you cannot have a closing period (firm date to closing date) longer than 6 months.
Is there a deductible?
Yes, the policy deductible is $500.
Are all transactions eligible for Commission Insurance?
No. Commission Insurance is only available on Residential Resale transactions. This means no new construction unless the home is ready for occupancy when deal goes firm. There cannot be any commercial use.
Are there other requirements?
Yes. Your customer is required to employ the services of a lawyer or other qualified person to complete the property transaction.
When can I make a claim under the Commission Insurance policy?
If the Closing Date is reached and the deal fails, you would call our claims department to notify us. We would then ask for details of the transaction and reason for the failure.
Who do I contact in the event of a claim?
To report a claim, please call the Claims center at 1-877-744-2301.
What information is required in order to put in a claim?
Generally our claims department will require you to produce all relevant details about the transaction including the Agreement of Purchase and Sale, commission details, and the reason for the failure.
Are changes to a Firm Offer of Purchase & Sale covered?
We require notice if changes to a firm offer are made. If all parties agree to the changes then coverage should not be affected as long as the changes do not increase the risk to the insurer. It is always prudent to call us.
Who is Ogilvy Insurance?
Ogilvy Insurance is the Insurance Broker behind the RESRx brand. For more information please visit www.ogilvy.ca
Disclaimer- This represents a summary of Commission Protection coverage. Please refer to a policy for a complete description of coverage and conditions.