For Legal Professionals:
Unique Gap Coverage in Manitoba for Residential Transactions 

All Manitoba residential policies (other than existing owner policies)  include an enhanced form of gap endorsement designed to address the specific needs of the real estate bar in Manitoba.  

While our policies have always included gap coverage, the Manitoba Gap Endorsement offers further defined and enhanced coverage. By choosing to insure your transactions with Stewart Title your transactions can close quickly and efficiently because:

• Trust conditions with respect to holding funds in trust until registration do not have to be imposed.
• Lenders can advance mortgage funds prior to registration.
• Purchasers can release purchase proceeds to the vendor upon receipt of executed documentation required to register the transfer of title. Keys and possession can be exchanged thereafter.

Documentation should be submitted for registration on or before the closing date.  A sub search of title must be conducted on the closing date and any adverse matters disclosed to Stewart Title for an underwriting decision prior to closing.

Specific covered title risks contained in the Manitoba Gap Endorsement address the following issues and provide coverage for losses due to:

• Intervening liens and encumbrances registered on title between the date of closing and the date of registration.
• Rejection by the applicable Manitoba Land Titles Office of the transfer documents and/or mortgage, including for failure of a spouse to consent as required under the Homesteads Act and in the event that documents do not meet requirements for registration.
• The vendor failing to cooperate to remedy a defect in the transfer OR in the case of a mortgage, the borrower refusing to cooperate to fix a defect in the mortgage that prevents registration.
• Costs, such as rejection fees, would be included in the computation of the loss.
• Loss or damage for the matters outlined as Additional Risks in the endorsement where such Additional Risks were not agreed to by the insured and which first arise after the closing date, but before the registration date (i.e. during the gap period). 

Like all coverage, the Manitoba Gap Endorsement is subject to the exceptions and exclusions in the policy.

Waiver of Right of Subrogation

When ordering title insurance, the lawyer providing the title information for the policy order (generally the purchaser’s lawyer) benefits from a waiver right of subrogation (except in cases of an intentional act or omission or gross negligence and/or any fraudulent act or omission) for claims paid under the policy. With respect to transactions where the Manitoba Gap Endorsement is obtained, Stewart Title is now providing both the purchaser’s lawyer and vendor’s lawyer with an express written waiver of right of subrogation with respect to the trust conditions that are not imposed. Accordingly, except in cases of an intentional act or omission or gross negligence and/or any fraudulent act or omission, Stewart Title waives its right of subrogation for losses due to claims arising as a result of the lack of imposition of trust conditions to hold funds in trust until registration.

Since the endorsement is attached to your residential policies automatically, there is nothing additional that you need to do to when placing an order. Stewart Title will provide you with a confirmation of coverage package prior to the closing date that will include a copy of the endorsement and written waiver of subrogation letters. With respect to the waiver of right of subrogation letters, should you choose to, you can forward a copy to the vendor’s lawyer for his/her records. Otherwise they can be retained for your records.

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

* Please review the actual endorsement and waiver of right of subrogation provisions for full details.

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.