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Atlantic Canada

Commercial Search Requirements

IMPORTANT NOTE: In addition to your normal corporate due diligence, it is a requirement of Stewart Title that you obtain Canadian/Provincial Government issued PHOTO ID for all private individuals and corporate signing officers for private corporations, that you review and confirm the validity to the best of your ability, and that you keep a legible photocopy in your file. We will not insure a transaction for which acceptable PHOTO ID is not obtained. If you are unable to obtain acceptable PHOTO ID please contact a Stewart Title underwriter PRIOR to closing.

It is imperative that you order your title insurance policy prior to the closing date. This ensures all underwriting matters can be considered in the coverage provided for the Insured. Please inform Stewart Title immediately if your deal has been delayed over 30 days.

Where coverage is provided, title insurance can eliminate the need for certain off-title searches. This results in significant savings to the client, which often outweighs the cost of the title insurance premium. In order to maximize the cost savings, please refer to this list when the transaction is initiated. Please note that this information was compiled based on general practices in most jurisdictions. For further information please contact Stewart Title.

Title Search Requirements

REGISTRY PROPERTIES
Purchase Transaction:	A full search is required including compliance with any Planning Act or similar legislation.
Refinance Transaction:	Only a sub-search from the last arm’s length deed is required for commercial refinances under $10 Million. No abutting land searches are required, provided that you make a verbal inquiry of the borrower to determine if they have an interest in an abutting property. (A full search of title is required for commercial refinances over $10 million)
Land Titles (New Brunswick):	(Both purchase and refinance transactions) Obtain a copy of the Certificate of Registered Ownership (CRO). We request that you review those interests/encumbrances that appear on the CRO and that you provide Stewart Title with the details.
Land Registration (Nova Scotia):	(Both purchase and refinance transactions) Obtain a Statement of Registered and Recorded Interest (SRRI). We request that you review those interests/encumbrances and textual qualifications that appear on the SRRI and that you provide Stewart Title with the details.

NOTE: Where a prior opinion is available, the above search requirements may be altered with the approval of a Stewart Title Underwriter. Please contact any of our Underwriters to discuss.

Survey Requirements

FOR OWNER
Commercial Transactions Under $12 Million:	An up-to-date survey is not required to obtain the survey coverage contained in the Commercial Owner’s Policy.
Commercial Transactions Over $12 Million:	An up-to-date survey is required to obtain the survey coverage contained in the Commercial Owner’s Policy. Please note however, that survey coverage may be negotiated for commercial transactions over $12 Million in the event that an old survey is available and the vendor(s)/mortgagor(s) is willing to provide a Statutory Declaration confirming that there have been no improvements to the subject property, up to the Policy Date.

FOR LENDER
For all Commercial Transactions:	An up-to-date survey is not required to obtain the survey endorsement.

Not Required Off-Title Searches
The following searches are not required when acting on a commercial transaction:

Notes:
1. “LTV” = Loan to Value Ratio
2. Where a search is waived for lenders between $10 million and $50 million as set out below a suitable statutory declaration from the vendor (purchase mortgage transaction) or borrower (refinance) must be obtained. Please contact Stewart Title to obtain a sample declaration.

1. Judgment/Execution Searches are required against the current vendor(s) and if a mortgage is being insured, against the purchaser(s)/mortgagor(s). Please note that similar name executions may be underwritten on a case-by-case basis. Judgment/Execution searches are not required against any other parties.
2. Public Utility Certificates/Arrears.
   For Owner: For transactions under $10,000,000, verbal confirmation, a receipted utility bill or reference in a vendor’s Statutory Declaration is sufficient; however, if any of the foregoing cannot be obtained we will require the certificate. Public Utility Certificates are required on transactions over $10,000,000.
   For Lender: Verbal confirmation, a receipted utility bill or reference in a vendor’s/mortgagor’s Statutory Declaration is sufficient regardless of the mortgage amount; however, if any of the foregoing cannot be obtained we will require the certificate.
   NOTE: Coverage is provided to the extent the arrears form a lien.
3. Provincial/Municipal Realty Tax Certificate.
   For Owner: For transactions under $10,000,000, verbal confirmation, a receipted tax bill or reference in a vendor’s Statutory Declaration is sufficient; however, if any of the foregoing cannot be obtained we will require the certificate. Tax Certificates are required on transactions over $10,000,000.
   For Lender: Verbal confirmation, a receipted tax bill or reference in a vendor’s/mortgagor’s Statutory Declaration is sufficient regardless of the mortgage amount; however, if any of the foregoing cannot be obtained we will require the certificate.
4. Corporate Profile Report or Certificate of Status is required against the vendor(s) and the purchaser(s)/mortgagor(s). They are no required against prior corporate owners.
5. Zoning Compliance.
   For Owner: If the purchase price is under $10 Million, no report is necessary in order to obtain a zoning endorsement.
   For Lender: If the loan amount is under $10 Million, no report is necessary in order to obtain a zoning endorsement. If the loan amount is between $10 Million and $50 Million, no report is necessary in order to obtain a zoning endorsement provided that we receive confirmation that the LTV is not greater than 75%. With the approval of a Stewart Title Underwriter, the search may be waived for loans over $50 Million. Please contact any of our Underwriters to discuss.
   NOTE: The policy will insure that the Property will be permitted to continue its present use only. If vacant land, the client or solicitor should confirm zoning corresponds with future development/improvements.
6. Work Orders.
   For Owner: if the purchase price is under $1 Million no report is necessary in order to obtain our municipal building department work order coverage.
   For Lender: If the loan amount is under $10 Million no report is necessary in order to obtain our governmental or quasi-governmental (excluding environment) work order coverage. If the loan amount is between $10 Million and $50 Million, no report is necessary in order to obtain our governmental or quasi-governmental (excluding environment) work order coverage provided that we receive confirmation that the LTV is not greater than 75%.
7. Estoppel Certificates/Status Certificates for Condominium Refinances under $2 Million. For all other transactions, this search is required.
8. Fire Department Compliance searches are not required for lender policies under $10 Million. If the loan amount is between $10 Million and $50 Million, no search is required provided that we receive confirmation that the LTV is not greater than 75%. For all owner policies and for lender policies over $50 Million no coverage is provided for this matter.
9. Subdivision and Development Agreement Compliance
   For Owner: This seach is not required for owner policies under $10 Million unless the property is currently under construction, in which case this search should be completed regardless of the policy amount. For all transactions over $10 Million, this search is required.
   For Lender: This search is not required for lender policies under $10 Million. If the loan amount is between $10 Million and $50 Million, no search is required provided that we receive confirmation that the LTV is not greater than 75%. For loans over $50 Million, this search is required.

Items Not Covered By Commercial Policies

Please Note- Existing Owner and Lender Policies are not available for Commercial Properties

The following searches may reveal title or other defects which are of relevance to your client and are NOT covered by commercial title insurance policies:

1. Conservation Authority
2. Environmental Clearance
3. Landlord and Tenant Act or similar and related legislation
4. Water Potability and Quantity.
5. PPSA Re: Chattels
6. Estoppel Certificate/Status Certificates – except as noted in # 7 above.
7. Fire Department Compliance – except as noted in #8 above.
8. Bank Act Issues
9. Bankruptcy Act
10. Elevator Issues
11. Public Health Department Issues
12. Septic System
13. Electrical Safety Authorities
14. Underground Fuel Oil Tanks

NOTE: Stewart Title Commercial Policies do not provide coverage for the foregoing matters. Solicitors should determine if any of these items are relevant to the subject transaction and if so, which of the above or other searches need to be conducted to adequately protect their clients interests.