Existing Homeowner Policy Search Requirements
Stewart Title is pleased to offer title insurance policies for residential properties where the homeowners are not currently title insured. Homeowners obtain the benefit of the comprehensive coverage of our Existing Homeowner Policy for a low one-time premium. Attached to the Existing Homeowner Policy is an "Existing Owner" endorsement.
Policies may be ordered directly through our office either by phone or fax or through the Stewart Title Electronic Policy System (STEPS).
Requirements for Obtaining a Policy
Search Requirements:
Land Titles (New Brunswick):
Not required to search behind the Certificate of Registered Ownership
(CRO). However for encumbrances that appear on the CRO, we request that you review
those encumbrances and advise us accordingly. Judgment/Execution search is
NOT required for properties in the New Brunswick Land Titles system.
Land Titles (Nova Scotia):
Not required to search behind the Statement of Registered and Recorded
Interests (SRI). However, for recorded interests that appear on the SRI or textual
qualifications on title for which the property is "subject to", we request that you
review those recordings and/or textual qualifications and advise us accordingly. A
Judgement/Execution search for the vendor to the existing owner is required for properties
in the Nova Scotia Land Titles system.
Registry Properties:
In the event that the existing owner obtained an Existing Legal Opinion/Reporting
Letter at the time they obtained title that confirms that a full search
was concluded and you have reviewed such Legal Opinion/Reporting Letter, then Stewart
Title only requires the completion of a sub-search of title from the date of acquisition
of title by the existing owner to the current date of order. Any matters affecting
title revealed in the Existing Legal Opinon/Reporting Letter should be disclosed
to Stewart Title, including if the title would not be considered marketable according
to current title search standards.
In the event that the existing owner did not obtain an Existing Legal Opinion/Reporting Letter at the time they obtained title that confirms that a full search was concluded, then Stewart Title requires a full search of title to be completed.
For properties in the registry system, a Judgment/Execution search for the vendor to the existing owner is required.
If a survey is available, please request a copy from the homeowner and review for obvious defects such as encroachments.
No other searches are required for the issuance of a policy for a single-family residence.
Search Information to Be Disclosed to Stewart Title:
In the event that your search determines a title or other defect please consult with a Stewart Title underwriter prior to insuring the transaction. Due to the nature of this policy, known defects will be excepted from the policy. No affirmative underwriting will be given.
In particular, should your search reveal that a mortgage registered at the time of purchase has been discharged, we require that you confirm with the homeowner that this mortgage has indeed been paid.
All registered mortgages must be reported to Stewart Title and will be listed as exceptions to the policy.
Importance of an Existing Legal Opinion:
The Gold owner residential policy is modified by an "Existing Owner" Endorsement. A copy of which is included herein. Included within this endorsement are provisions with respect to the requirement that, in the event of a claim, the homeowner must provide Stewart Title with a copy of the legal opinion obtained at the time of their purchase. Stewart Title’s obligations under the policy may be reduced if a legal opinion is not provided. All matters disclosed in the legal opinion are excluded from coverage.
Policy Date:
The Policy date is the date of registration of the transfer deed under which the homeowner took title. The significance of this date is that, with exception of matters for which there is explicit "post-policy" coverage (such as post-policy forgery), matters which first arose after the date the homeowner took title are not covered.
Policy Amount:
The policy amount is the purchase price at the time the homeowner took title. However, this may be modified to recognize the increase in the fair market value of the property over time. In order to change the policy amount to the fair market value we require that you obtain one of the two following: i) evidence from the municipal assessment office as to the current fair market value or ii) a certified appraisal.
Premium Applicable:
For a property with a policy amount under $500,000 the premium is $225 plus P.S.T. For a policy amount above $500,000 the premium is $225 plus $0.90 per $1,000 over $500,000.