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DEPOSIT PROTECTION (FOR CONDOMINIUMS ONLY)
POLICY
The Program Warrantor acknowledges and agrees that the deposit money paid by the Purchaser to the Builder or Retailer is refundable to the Purchaser. In the event that such deposit monies cannot be recovered by the Purchaser due to bankruptcy, insolvency or proven fraud of the Builder or Retailer, the Program Warrantor shall repay the deposit monies to the Purchaser subject always to the following limiting conditions:
- The Builder has fulfilled to the unfettered discretion of the Program Warrantor all the conditions set out in the Deposit Protection Coverage Confirmation certificate for the registered property as defined therein.
- The Purchaser has performed all of his obligations or shall be ready, willing and able to complete all of his obligations to the Builder or Retailer pursuant to any contract between them.
- The Purchaser shall, in the event of repayment of any deposit monies by the Program Warrantor to such Purchaser, forthwith assign and transfer to the Program Warrantor to the extent of such payment any security position, judgment, agreement for sale or equity security the Purchaser may hold against the Builder or Retailer relating to the same transaction.
- The Purchaser's copy of the Deposit Protection must be registered with the Program Warrantor by the Builder or Retailer promptly following the execution of this receipt and confirmation of coverage will be issued by the Program Warrantor to correspond exactly with the Offer to Purchase.
- Coverage under this deposit protection shall expire on the later of the date of possession, as set out on the Certificate of Possession, or the closing date, as set out in the Agreement of Purchase and sale, provided that coverage expires in any event no less than six (6) months after possession.
- In no event shall the Program Warrantor be liable for any deposit or costs related thereto in excess of $30,000.
This policy for Deposit Protection shall take effect when (i) it has been executed by or on behalf of the Program Warrantor and the Builder, (ii) when it has been delivered to the trustee or the Builders solicitor holding the money for which the policy is being provided as security.
The trustee or the Builder's solicitor, as the case may be, shall hold this policy in trust for the beneficiary until the Program Warrantor is no longer liable under it.
LRWP requires that a charge/mortgage be placed on the title of the subject property by the builders’ solicitor for the full gross amount of the deposit protection. Said charge/mortgage will be 2nd position to the project financing (if applicable). No other charge or lien shall supercede LRWPs position on title. Failure to do so will void this warranty.
The Builder shall pay the Deposit Protection Fee in respect to this policy and shall not directly or indirectly transfer the cost of the premium to the beneficiary. The conditions of this warranty change from time to time and must be checked on the corporate website at: www.luxrwp.com for the complete policy. (E&OE)
DELIVERY OF POLICY
Upon written request, the trustee or the Builder's solicitor, as the case may be, shall deliver this policy to the beneficiary so that the beneficiary can make a claim under it.
NOTICE OF CLAIM
The Program Warrantor will within 14 days upon receiving written notice of a claim by the beneficiary under this policy, provide the beneficiary with the appropriate forms with which to make proof of loss.
Having received written notice of a claim, the Program Warrantor shall pay the beneficiary within 90 days of the establishment of the right of the beneficiary to payment under policy.
LIABILITY
The Program Warrantor shall remain liable under this policy until,
- the Builder delivers to the beneficiary a deed in registerable form to the unit, in respect of which the beneficiary or a person on the beneficiary's behalf has purchased;
- the Builder pays the beneficiary all money and interest applicable under the Act;
- the Program Warrantor pays the beneficiary the amount of the loss;
- the beneficiary acknowledges in writing that,
- the beneficiary is not entitled to the payments made by or on behalf of the beneficiary under subsection 81 (1) of the Act in respect of a proposed unit in the corporation and any interest paid thereon by the Builder, and
- the Program Warrantor is no longer liable under this policy; or
- a court of competent jurisdiction has made a final determination that the beneficiary is not entitled to the payments made by or on behalf of the beneficiary in respect of a proposed unit in the corporation as well as any interest paid thereon by the Builder.
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