Commercial Owner Policy of Title Insurance

Stewart Title’s Commercial Owner Policy of Title Insurance is obtained for a one-time premium at the time a property is purchased and is available for properties such as:

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

The policy is effective from the date the insured’s interest is submitted for registration and will remain in effect for as long as the insured retains an estate or interest in the land.

The amount of insurance for the commercial owner policy is equal to the purchase price of the property.  The amount of insurance decreases by any amounts (other than legal fees and associated legal expenses) that we pay to cover a claim.

Policy Coverage

Stewart’s Commercial Owner Policy provides coverage for losses arising from many types of title and off-title related risks which impact the insureds interest or use of the land.  Other than the post date of policy fraud coverage, the covered risk which gives rise to a claim must exist, but be unknown to the insured, at the date of policy.

Covered Title Risks

• Someone else has an interest in the title
• Liens or encumbrances against the title
• Defects in title caused by:
  • forgery, fraud, undue influence, incompetency, incapacity or impersonation
  • a document affecting the title not being properly created, executed, or witnessed
  • a document not being properly registered
• Gap Coverage for  intervening registrations arising in the period between the transaction closing date and when the insured’s interest is registered on title
• Lack of legal access to the land

Covered Off-Title Risks

• Adverse matters that would have been revealed by an up-to-date survey/Real Property Report of the land, other than the removal of fences or boundary walls¹
• Zoning² issues including:
  • existing zoning by-laws not permitting the use of the land that existed as of the date of policy
• Non-compliance with zoning by-laws concerning:
• area, width, depth of land as a building site for the structure
• floor space & height of the structure
• setbacks of a structure from the property line of the land

¹A survey endorsement is available without the need for an existing survey for transactions of up to $25 million for developed land or $12 million for properties under construction or vacant land.

²A zoning endorsement is attached without the need for a zoning search for transactions of up to $25 million.  The form of endorsement may vary depending on whether the land is developed, vacant or under construction.

Post Date of Policy Fraud Coverage

Up to a maximum dollar limit of liability of $5 million in the aggregate, commercial owner policies provide coverage for losses sustained by the insured owner by reason of someone else, after the date of policy, claiming to own an interest in, have rights affecting, or have a lien on the title, because of impersonation or forgery.

The coverage under this endorsement does not extend to any loss if the forgery or impersonation is caused by an employee, officer, director, partner, member, shareholder or agent of the insured owner.

Policy Exclusions/Exceptions

There are standard exclusions and exceptions from coverage contained in all commercial owner policies.   These include but are not limited to:

• Matters known by, agreed to, or created by the insured
• Matters first occurring after the date of policy (other than the post date of policy fraud coverage)
• Claims related to bankruptcy or insolvency as they relate to the insured transaction
• Matters disclosed in the contract of purchase and sale or inspection reports obtained prior to closing
• Environmental matters
• Physical/structural defects, even if these defects affect the value of the insured land

Commercial Endorsements

Stewart Title offers a variety of commercial endorsements at no additional cost that can be used to customize our policies to meet the unique requirements of each transaction. 

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.