How to Transfer a Claim

Effective July 13, 2020, existing inactive and Pending Type 1 claimants, who have not yet had their foundations remediated, will be able to transfer their claims, registered with CFSIC, upon the sale of the home in question to a buyer.

(From inception, CFSIC has always permitted those claimants designated as “active” to transfer their claims.)

Claimants with questions about how to transfer an existing active, inactive, or Pending claim should contact ESIS ProClaim by email at cfsic@esis.com or by phone at (844) 763-1207.  Your best source of claim transfer assistance will be ESIS.

What follows provides homeowners with detail about how the claim transfer process works.

First, it’s important to note that Type 2 claimants cannot transfer their claims.

With respect to the transfer of a Type 1 claim through the sale of an eligible residential building, the following steps in the process will apply:

Duties of Original Claimant and Contractor

Step 1: Claim Transfer Data Form Completed

Prior to the transfer of a claim being made, the existing active, inactive, or Pending claimant (Original Claimant) will request a Claim Transfer Data Form from ESIS ProClaim. ESIS ProClaim will provide the Original Claimant with this form, for which it will be the Original Claimant’s sole responsibility to complete and to return to ESIS, and where the data in this form provides the necessary claim transfer information. (ESIS ProClaim will not accept a Claim Transfer Data Form from anyone except an Original Claimant or appointed counsel to that claimant. ESIS ProClaim will not accept a form transmitted by a realtor or by the purchaser of the property in question.) Claim Transfer Data Forms can be returned to ESIS ProClaim as an email attachment, by fax, or by US Postal Service. The form cannot be uploaded using the electronic application portal located on the CFSIC website. 

Step 2: Claim Transfer Agreement Completed

Upon successful completion of the Claim Transfer Data Form, ESIS ProClaim will alert the Superintendent’s office that a claim can be validly transferred using a Claim Transfer Agreement (PDF). The Superintendent’s office will contact the Original Claimant and will provide a Claim Transfer Agreement whereby the Original Claimant will transfer certain rights, duties, and obligations to the buyer of the property in question (Transfer Claimant). The Superintendent’s office will only provide to and accept Claim Transfer Agreements from the Original Claimant or Original Claimant’s counsel; it will not accept a Claim Transfer Agreement from a real estate agent or the buyer of the property in question.

Step 3: Termination Agreement Completed (Participation Agreement)

If the Original Claimant has a fully executed Participation Agreement with CFSIC, ESIS ProClaim will provide the Original Claimant with a Termination Agreement, terminating any existing fully executed Participation Agreement. The Original Claimant will sign the Termination Agreement and return it to ESIS ProClaim for countersignature by the Superintendent. ESIS ProClaim will then provide a fully-executed copy to the Original Claimant. 

Step 4: Construction Contract Cancelled

If a valid construction contract has been entered into between the Original Claimant and a CRCOG-approved contractor, the Original Claimant must contact the contractor, and the Original Claimant and the contractor will be required to mutually agree in writing to void any existing contract and provide evidence of this to ESIS ProClaim.

Step 5: Termination Agreement Completed (Contractor)

If a valid construction contract has been entered into between the Original Claimant and a contractor, the contractor must complete a Termination Agreement voiding the original Contractor Acknowledgment covering the project and provide it to ESIS ProClaim. If CFSIC has paid the contractor a deposit on the construction to be performed, the contractor must return the deposit at the same time the Termination Agreement is returned to ESIS ProClaim. Upon return of the deposit in full, the Superintendent will countersign the contractor’s Termination Agreement.

Duties of Transfer Claimant and Contractor

Step 6: Re-engagement with Contractor

The Transfer Claimant is now free to engage with the contractor with whom the Original Claimant had entered into a contract, OR to obtain a minimum of two contractor proposals from the CRCOG list of approved contractors. If the claim transferred was an active claim including a signed construction contract (whether or not such claim was under a Participation Agreement at the time of transfer), the Transfer Claimant has 180 days from the effective date of the Claim Transfer Agreement, to enter into a signed construction contract, inclusive of the process of having obtained a minimum of two contractor proposals from the CRCOG-approved list for prior approval by ESIS ProClaim, and to provide the final signed contract to ESIS ProClaim.

The failure of a Transfer Claimant to enter into a final CFSIC-approved construction contract within 180 days from the effective date of the Claim Transfer Agreement removes the Transfer Claimant as a claimant from the CFSIC program.

Step 7: New Contractor Acknowledgment

The contractor will be required to provide ESIS ProClaim with a new Contractor Acknowledgment covering the remediation work specified in the approved contract.

Step 8: New Participation Agreement

The Transfer Claimant will be required to enter into a new Participation Agreement covering the claim, and will be required to provide, prior to the countersigning of the Participation Agreement by the Superintendent, a copy of the recorded deed covering the transfer of the eligible residential building in question.

Inactive and Pending Claimant Considerations

Inactive Claimants

By definition, inactive claimants are not covered by Participation Agreements, do not have signed construction contracts, and no construction deposits have been paid by CFSIC. A copy of the recorded deed transferring the home in question will be required.

As a result, inactive Original Claimants will need to follow the process noted above only with respect to obtaining the Claim Data Transfer Form and eventually entering into a Claim Transfer Agreement.

Pending Claimants

By definition, Pending claimants are not covered by Participation Agreements, do not have signed construction contracts, and no construction deposits have been paid by CFSIC. A copy of the recorded deed transferring the home in question will be required.

As a result, Pending Original Claimants will need to follow the process noted above only with respect to obtaining the Claim Data Transfer Form and eventually entering into a Claim Transfer Agreement. 

Additional Considerations

CFSIC will only accept, as evidence of the transfer of an eligible residential building, a copy of the recorded deed.

The Original Claimant and the Transfer Claimant will agree that, upon the signing of the Claim Transfer Agreement, the claim transfers at the status and the financial value existing at the time the agreement was signed, to the extent that value has been determined. The Transfer Claimant will accept the status of the claim as transferred, inclusive of the Original Claimant’s application and all points of evidence as these are in existence at the time the claim transfer is effected. CFSIC will not require a new commercial insurer declination from a Transfer Claimant upon the effective transfer of a claim, if CFSIC is in possession of a commercial insurer’s written declination letter from the Original Claimant as of the date the transfer is effected. If no commercial insurer’s written declination exists on the effective date of the Claim Transfer Agreement, the Transfer Claimant will have to obtain a declination letter. Similarly, if an Original Claimant transfers a claim to a Transfer Claimant where the Original Claimant has received or is scheduled to receive a full or partial claim payment or settlement from a commercial insurer on or before the date of transfer, the claim is transferred to the Transfer Claimant with the understanding that CFSIC will offset any payment to the Transfer Claimant taking into account the commercial insurer’s contribution to the claim filed by the Original Claimant, and where payment or settlement was or will be provided to that Original Claimant by such commercial insurer, it being agreed and understood that CFSIC is secondary, at all times, to any payment or settlement made by a commercial insurer with respect to a claim, and that, as a result, the Original Claimant and the Transfer Claimant agree that the claim transfers on the effective date of transfer at its applicable CFSIC valuation, with CFSIC’s secondary payment position in full understanding.

CFSIC will not permit the transfer of a claim where any aspect or phase of foundation remediation/construction is already underway.