For Legal Professionals:
Gap Coverage helps you close with peace of mind

Gap Coverage protects the insured against loss or damage due to registrations that appear on title to the insured land between the date of closing and the date/time of registration of the transfer (owner policy) or mortgage (lender policy).  This coverage can facilitate the closing of transactions on time and funds and keys can be released to the respective parties.  

What if the Land Titles Office is experiencing delays in completing registrations? 

Gap Coverage is available even when the land registration system is experiencing delays in completing registrations. To benefit from Gap Coverage, please ensure you have followed these steps:

1. Conducted a subsearch of title on the closing date.  For the purpose of our coverage, the “closing date” is the date you intend to release funds to the borrower (refinance) or seller (purchase/sale), and this should be the date you indicate as the closing date when you order a policy.   If you submit your documents for registration prior to this date, you will still need to subsearch on the closing date. If your subsearch reveals any adverse matters (including pending registrations*) that will not be resolved prior to closing and have not already been brought to Stewart’s attention, please contact a Stewart underwriter prior to closing for an underwriting decision;
2. Have all documents signed and ready for submission for registration;
3. Ordered title insurance on or before the closing date and final policies have either been received or made available to print. (Note:  If your file is flagged for an underwriting review, wait until that is resolved before you can rely on Gap Coverage); and
4. Submitted your documents for registration on or before closing, or on the next available day after the closing date, if the land registration system has closed for the day.

What if there is an unexpected temporary closure of the government registration system?

In the event of an unexpected temporary closure of the government registration system, follow steps 1 to 3 above and submit for registration as soon as possible when you have access to online registration, or after service resumes at the land registration offices.  If it is not possible to conduct a subsearch of title, in this circumstance only, unless you are aware of possible adverse registrations that might appear on an updated search, you may still rely on Gap Coverage as long as your original title search is dated within 30 days of the closing date.  Please look for Stewart bulletins that are published from time to time when these unexpected closures occur.

What else do I need to know?

Gap Coverage is automatically included on our residential** and commercial title insurance policies or as a Single Risk Gap-Only policy for commercial transactions.  Note that gap coverage is subject to certain exclusions including matters for which the insured is aware (or has agreed to accept or is responsible).  There is no gap coverage for matters (including pending registrations) that appear on your subsearch of title on the date of closing, and in the case of an unexpected temporary closure, matters that appear on your title search dated within 30 days of the closing.

On purchase transactions, a policy for both the owner and lender must be ordered for both parties to benefit from this coverage. When only a lender policy is ordered, the purchaser/borrower is not insured.

As your trusted partner, rest assured that we are here to help you close your transactions with confidence. 

Note for residential transactions in Manitoba please review the information HERE.

Should you have any questions, please contact your Business Development Manager.

*Pending registrations are considered known matters and, accordingly, should be investigated before closing. Some items that might appear that would be of concern include builder liens, certificates of lis pendens, court orders, mortgages etc.  If these matters are not resolved prior to closing – such as a builder lien being paid out along with receipt of appropriate assurances that there are no other unpaid contractors/suppliers and an undertaking to remove the builder lien from title – then contact a Stewart underwriter prior to closing ([email protected]).  
**Gap coverage does not apply to Existing Owner Policies.

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.