Commercial Gap Owner Policy of Title Insurance and

Commercial Gap Loan Policy of Title Insurance

Available in Alberta only, Stewart Title’s Commercial Gap-Only Policy for either owners or lenders can be obtained for a low, one-time premium and is intended to provide parties with the ability to close their transaction and advance funds prior to registration of their interest on title being completed. Commercial Gap-Only Policies provide the peace of mind necessary to allow for transactions to close on a timely basis.

This policy is available for properties such as:

• Lands zoned commercial or industrial
• Buildings comprised of seven or more residential units
• Commercial condominium/strata units
• Commercial leasehold
• Vacant land
• Construction projects

The policy is effective from the date that the insured’s interest is submitted for registration and remains in effect until the interest is fully registered. 

Generally, the amount of insurance for the Commercial Gap-Only Policy for owners is the purchase price of the property and for lenders, it is the mortgage amount. 

Policy Coverage

Stewart’s Commercial Gap-Only Policies provide coverage for loss arising from intervening registrations occurring between the transaction closing and when the insured ownership interest or mortgage interest are fully registered on title.  There are no endorsements such as survey or zoning attached to this policy, and no coverage over prior existing encumbrances.

You might consider obtaining a Gap-Only Policy where:

• The registration delay in provincial land registry systems is lengthy
• Multijurisdictional transactions require closing and release of funds on a particular date
• Delays in obtaining closing funds may result in additional costs
• The first advance under a construction loan is taking place and registration will be effected before subsequent advances will occur

Contact us for additional information.

This website is intended to provide information that is of a general nature and is subject to modification. Coverage and requirements can vary depending on the nature of the transaction and location of the property involved. Please review your actual Stewart Title policy for full coverage details.