A Residential or Commercial Loan Policy from Stewart Title insures that, as of the closing date, the mortgagee has a valid and enforceable interest in the insured property and that the mortgage has the priority expected by the mortgagee.
All lender title insurance policies issued by Stewart Title protect against losses arising from defects in title, unmarketability of the title, and title to the property not being vested in the borrower. In addition, depending on the nature and amount of the policy, losses due to certain off-title matters such as zoning, work orders, and taxes are covered.
Stewart Title is experienced in dealing with all types of lending institutions and with insuring both residential and commercial transactions of a variety of complexities.
||Lenders are protected against losses on both residential and commercial transactions in the event that the validity or enforceability of the insured mortgage is challenged due to borrower fraud. In addition, Stewart Title’s residential lender policies protect lenders in the event that, after closing, the insured mortgage is fraudulently discharged, assigned, released, transferred, or modified.|
|Defence of Title
||Stewart Title’s post-closing obligations include paying the costs, legal fees, and expenses incurred in defending the lender’s interest in title to the extent that a title challenge is based on a covered risk in the policy. This duty continues until such time as the claim is resolved.|
||By obtaining title insurance a lender is indemnified against losses if the priority of the insured mortgage is not as expected.|
|Unsurpassed survey coverage
||Survey coverage is provided for all residential properties of up to six units. Commercial survey coverage is also available, and is automatically provided for policies with a value of $10 million and under.|
||Situations arise when registration cannot be completed on the date of closing. This may occur because of delays in provincial land registration systems or because of unexpected events. Provided Stewart Title’s underwriting criteria are met, our policies provide gap coverage which protects both lenders and purchasers against intervening registrations between the date of closing and the date of registration. This allows the transaction to close on time, with funds being released to the respective parties.|
|Securitization of mortgage portfolios
||For lenders looking to trade or securitize their residential and commercial mortgage portfolios on the world market, title insurance can provide standardized protection and is recognized worldwide.|
||By obtaining a insurance policy from Stewart Title in a transfer/switch situation, lenders can save time and cost as the due diligence required by Stewart Title in order to issue such policies is minimal.|
|Unsurpassed septic coverage
||For residential properties of up to six units, Stewart Title provides comprehensive coverage with respect to the legal status of the septic system without the need to conduct a written septic inquiry with the local governing authority.|
||In the event of a claim, it is not necessary to pursue the lawyer/ notary acting on the transaction and establish negligence. Claims are dealt without having to commence proceedings against third parties in order to recover loss.|
Working with Legal Professionals
Lawyers/ notaries and their staff are an indispensable part of the real estate process, as they are a conduit between the borrower, the lender, and the title insurer. Stewart Title believes that it is in the best interest of all parties for lawyers/ notaries to be at the centre of a mortgage transaction. By placing a lawyer/ notary at the forefront, both sides have the benefit of independent, professional legal advice during the entire transaction. Stewart Title offers an expansive network of well-qualified lawyers/ notaries across Canada.
The Existing Homeowner Policy
Tell your borrowers about The Existing Homeowner Policy. This policy is available for homeowners who did not obtain a policy when they purchased their home. This policy provides similar protection as a Residential Gold Owner Policy, but is modified by an "existing owner" endorsement. The policy date is the date the homeowner first purchased their property. It’s a cost-effective way for homeowners to obtain protection against losses arising from real estate title fraud.
Contact us for more information.