"This agreement recognizes the significance of the Canadian Legal Conference to bring together Canada's jurists in a venue that promotes substantive law issues, and that fosters connections between all facets of the legal community", stated John Hoyles, CEO of the CBA. "This arrangement with Stewart Title indicates their commitment to working with Canada's legal profession over the longer-term", he adds.

Stewart Title has a solid history of supporting legal professionals through initiatives such as the development of programs and innovative information technologies.

The Canadian Bar Association provides a range of tangible and intangible benefits to its 38,000 members; it is recognized as a leading provider of continuing legal education programs, and is a dominant voice in promoting the rule of law in Canada and around the world.

Working together, we believe we can better achieve our common goal of providing support to the legal community.

Be on the look out for Stewart Title at the CBA Conference & Expo in Calgary, August 11-14, 2007.

Visit us at booths 412 & 414, or find us at one of our sponsored events:

Don't miss your chance to enter Stewart Title's Pack Your Bags Sweepstakes where you could win the grand prize of a four night stay for two in Québec City, home of the 2008 CBA Legal Conference & Expo.

To win a leather garment bag and qualify for the grand prize, you can:

(1) Fill out a ballot by August 14, 2007 at industry trade shows which Stewart Title is a participant or organizer. Click here for a complete list of events where you can enter to win.

OR

(2) Enter via our online sweepstakes form. To enter directly online, click here.

The grand prize draw will take place August 14 at the CBA Canadian Legal Conference & Expo in Calgary.

With ample history, enchanting architecture, charming restaurants, and outstanding shops and markets-Québec City offers a multitude of diversions. Start with a stroll of the old walled city (a UNESCO World Heritage Site), browse through some of the excellent museums or galleries, and finish with a delicious meal and a fine glass of wine. It's easy to relax in such a perfect setting.

Enter Stewart Title's Pack Your Bags Sweepstakes and you could be on your way to a fabulous four night stay in this vibrant city.

Vacant / Bare Land Condominiums

We would like to remind you that vacant / bare land condominiums may be insured with Stewart Title. In essence, vacant / bare land condominiums are similar to a plan of subdivision where there are private roads and shared facilities. The plan of condominium creates common elements and units. No buildings or structures have been built on the individual units at the time of the registration of the condominium plan. This allows purchasers the flexibility in choosing which type of house to construct on the land. One condition, however, is that no unit can be built above or below another unit.

Due to the unique nature of these properties, we have created a separate property type in our STEPS system. The premium associated with this transaction type is the same as a freehold property, not a condominium. Please keep this fact in mind when providing premium information to your clients.

Frequently, Stewart Title is asked to insure residential mortgages where a loan is being given to finance improvements that will be made to a property. For example, the home owner may want to build an addition to the property and is borrowing money to finance same.

Our residential loan policy provides coverage in Covered Title Risk #7 as follows:

(a) The statutory lien or liens arise prior to or after Date of Policy; or
(b) The improvement of work is contracted for or commenced prior to or after Date of Policy;"

Despite the coverage afforded in the residential lender policy, it is our expectation that solicitors are complying with the requirements of the Construction Lien Act or similar provincial legislation with respect to maintaining proper holdbacks. We also require that sub searches occur before each advance. No further advances should be made in the face of a lien.

In some instances, the Agreement of Purchase and Sale or some other document provided to you by the purchaser or vendor may be indicative of the fact that there have been recent renovations to the property. Alternatively, the purchaser may inform you, in the course of your discussions with him/her that work has been done to the property. Finally, as mentioned in the preceding topic, the significant increase in value over a short period of time should lead you to make additional inquiries. Such inquiries may result in information indicating that significant recent renovations have been completed.

If you discover that the vendor has done substantial renovations, you should requisition evidence that permits were obtained and satisfactory final inspections completed.

In addition, we recommend inquiring about permits, inspections, and evidence of final approvals from the municipality or relevant governmental body. While our search requirements do not require that you obtain a building and zoning report for single family residential homes, in many instances your client may want the information that would be disclosed by such a search.

Another situation to keep in mind occurs when a purchaser has agreed to allow the vendor to complete work prior to or after closing. In such a circumstance this is considered to be an "agreed to" risk and the coverage in the policy with respect to building permits and adverse matters disclosed by a local authority search would not apply in the event of a claim. You should ensure that you are properly advising your client in these circumstances.

If you have any questions on how to proceed from an underwriting perspective when faced with these situations, we would recommend that you speak to an underwriter for further guidance.

At Stewart Title, our underwriters are experienced at reviewing issues quickly, providing guidance and giving appropriate underwriting to ensure your transactions close in a timely fashion.

When reviewing the facts of a particular transaction, our underwriters often spot trends that are somewhat disconcerting. One such trend that we have recently seen involves vendors who are not represented by a solicitor on the sale of their property.

In one instance, the vendor was recently divorced and had transferred the property from himself and his wife to himself alone. There was no consideration paid to his former spouse and the transfer was not prepared by a solicitor. The vendor husband then purported to sell the property without any legal representation. There are a number of issues which pose some concern in this instance including, but not limited to, fraud, undue duress, coercion, etc.

In circumstances where the vendor is not represented, it is imperative that you consult with Stewart Title before closing your transactions; as we may not be able to title insure the transaction. Once again, by exercising this level of underwriting diligence, we are attempting to protect solicitors and advise them of transactions which may be problematic.

At Stewart Title, we have been at the forefront of introducing additional safeguards to minimize the incidence of fraud. One of the results of introducing our standards of due diligence with respect to fraud mitigation is that solicitors are less likely to unknowingly act for a fraudster and face the unpleasant consequences, including being the subject to investigation.

As part of our due diligence requirements, solicitors are asked to respond to questions regarding transfers/discharges registered in the last six (6) months prior to closing to determine whether there is any indication of fraud. Part of the analysis involves examining the increase in value as evidenced by the transfers registered within this timeframe to assess whether the value has significantly increased. Although our policy does not provide any coverage for valuation fraud, it has been our experience that identity fraud and valuation fraud are often linked.

There may be instances where the most recent transfer may fall outside of the six (6) month time frame. Even in these situations, we recommend that you review the most recent transfer and compare it with the purchase price on the transaction being title insured to determine whether the increase in value is quite substantial. If there appears to be a significant increase in value, we would recommend that further inquiry be undertaken and that you inform Stewart Title if you are not satisfied as to the legitimacy of the increase in value.

Stewart Title is pleased to announce that it has extended the availability of its gap coverage to allow lawyers and their clients to close commercial mortgage transactions of up to $1 Million on the scheduled closing date, notwithstanding that the migration process has not yet been completed prior to funding. Gap coverage will protect the lender against losses arising from intervening registrations that affect the title to the property which occur prior to the migration being completed.

In order to take advantage of this gap coverage, Stewart Title requires all of the following information:
- A completed title search;
- Any title deficiencies be reported to a Stewart Title underwriter for review prior to proceeding;
- Mortgage documentation to be prepared and executed by the client and is ready for recording;
- That all documents respecting the registration of the parcel requiring the clients' signatures have been prepared and executed by the clients; and
- That the lawyer completes the migrating process within thirty calendar days of the date of funding.

Please note - only Commercial new mortgages and refinance transactions under $1 Million will qualify for the gap coverage. Commercial new mortgages & refinance transaction over $1 Million, construction mortgages and purchase transactions are not eligible.

As you may be aware, the Halifax Regional Municipality (HRM) recently sent out a notice advising that effective May 14, 2007, the HRM will commence charging a $25 fee for verbal confirmation on property tax accounts. In response to this change, Stewart Title would like to advise you of the following protocol with respect to taxes on residential transactions.

At Stewart Title, our policy for residential transactions has always been that you may obtain the coverage in the Stewart Title residential Gold policy without the requirement to order a tax certificate.

We do request that you attempt to obtain a receipted bill or a statutory declaration from the vendor confirming that taxes are paid. For municipalities where a verbal confirmation is still available for no charge, we do request that you continue to obtain that verbal information. However, if the foregoing is not available, we waive our requirements. In all cases, you should ensure that you are obtaining the standard vendor's undertaking to re-adjust.

Unless the insured is aware of tax arrears prior to closing or has agreed to pay arrears, the insured will be covered for tax arrears existing as of the date of policy, as per the standard coverage in our residential Gold policies. (For commercial transactions, please contact Stewart Title for a copy of our search requirements.)

Stewart Title has been notified by the Superintendent of Insurance for the Government of Newfoundland and Labrador that effective July 1, 2007, a copy of "Principles For The Sale of Insurance: A Consumer Protection Document" must be provided to a purchaser of insurance on the delivery of the policy contract and with any renewal and cancellation notice.

In compliance with the Government's directive, effective July 1, 2007, a copy of this document will automatically attach to Schedule B of the policy and Stewart Title advises that it must be attached as part of the final policy being delivered to the client(s).

Click here to view a copy of the Government's Bulletin and Consumer Protection Document.

Stewart Title has been issuing title insurance policies for more than a century and our financial strength, stability and claims paying ability make us an industry leader.

Stories from our most recent files:

Intervening Registration during Western Canada "Gap" Period
Shortly after closing, our insured's lawyer advised us that he had completed a title search prior to the closing date and confirmed that as of the closing date there were no unexpected encumbrances registered on title. However, unexpectedly, during the gap between the submission of the transfer and the certification of the transfer by the land titles office, a trustee in bankruptcy had registered a certificate of pending litigation on title with respect to a claim involving the previous owners of the property. As a result, the purchaser's title was subject to this prior claim by the trustee in bankruptcy.

Resolution: Stewart Title provided assurances to both the insured owner and lender that they would not be liable for any damages as a result of the pending litigation. Stewart Title retained local counsel to defend both the insured owner and lender and was successful in having the claim by the trustee removed from title.

Power of Attorney Forgery
Using a forged power of attorney purportedly signed by his elderly mother, a son transferred his mother's property from her name to his name and proceeded to mortgage the property without her knowledge or consent. The elderly woman discovered the fraud when mortgage enforcement notices were mailed to her home. The lender, who was insured by Stewart Title, made a claim under its policy.

Resolution: After determining that the power of attorney was a forgery, Stewart Title paid the insured lender the full amount owing on the mortgage, which amounted to over $65,000.

Overlap and Legal Description Error
Our insured lender was selling pursuant to an exercise of its power of sale when it received a requisition on title. The requisition raised an issue regarding an apparent overlap in the dimensions of the property. We reviewed the title search and noted that the apparent discrepancy was as a result of a clerical error rather than an actual overlap in title. Our insured lender was able to successfully deny the validity of the requisition. Secondly, the legal description also referenced two interests which were no longer valid against title and thus should not have been referenced as part of the legal description.

Resolution: We researched the law in respect of these two references and successfully argued that they should be deleted from title. The registry office accepted our argument and the issue was resolved.

Stewart Title has posted 32 years of consecutive growth in reserves and policyholder surplus that is unmatched in the industry. In fact, the industry's foremost rating companies such as Demotech Inc. (A"), Fitch Ratings (A+) and LACE Financial (A) recognize Stewart Title's outstanding financial performance by awarding impressive marks on our claims paying record.