Stewart Title is pleased to offer its latest support tool for lawyers/notaries and their conveyancing staff - the Existing Homeowner Policy Tool Kit.

This kit has all the tools you need to market and order Existing Homeowner Policies for your clients.

Each kit includes:

• Information on the policy and title fraud, including features and benefits of the policy for both you and your clients
• Order forms and process
• Premium information
• Search requirements
• A marketing letter template to obtain new business from your existing client base

Get an Existing Homeowner Policy Tool Kit! Contact your Business Development Specialist, or place an order online .

Coverage on Condo Purchases

Condominiums are a popular choice among buyers because of the many conveniences that they offer. While it is important to review the declaration of co-ownership, there are many other hidden risks and expenses that may arise for which title insurance can help provide protection.

Title insurance provides coverage:

• For arrears of common fees outstanding as of the policy date, for which the purchaser/lender was not aware.
• When problems arise from common parts to the percentage owned in the private part.
• For surveys, eliminating the need to obtain a new survey. This coverage saves cost and time, resulting in faster closings
• In the event that there are errors or omissions in the public title records, that were searched and relied upon by the lawyer. A traditional Lawyer's Title Opinion would except such errors.
• For forgery after the policy date by which someone else claims to own an interest in the property, where a traditional Lawyer's Title Opinion would exclude same.
• For legal costs and expenses associated with a legal challenge to the property, in so far as the challenge relates to a covered risk through a duty to defend.

The title insurance premium is paid one-time and provides coverage for as long as the purchaser or any heirs own the unit. Coverage is no-fault, eliminating the need to initiate legal proceedings to obtain compensation under the policy for any covered risk.

For more information on title insurance for condominium purchases, please contact your local Business Development Specialist.

FRAUD ALERT - Properties "Free and Clear" of Existing Mortgages

Stewart Title's claims department has encountered a rise in recent fraud claims involving properties that are owned "free and clear" of any existing mortgages. These types of unencumbered properties are attractive targets for fraud and may involve both purchase/sale transactions and refinances.

Whether you act for the purchaser, borrower or vendor, it is recommended that you and your staff exercise additional due diligence in situations when your title search reveals that the property is unencumbered, particularly if the client is unknown to you and/or if a power of attorney is also involved. This due diligence can start simply with your initial conversation with the client to inquire about the property and reason for the current transaction.

It is also recommended to request two pieces of government issued photo identification from the borrower, as well as other documentation that may associate them with the property, including the home insurance policy, as well as tax and utility bills. Should a power of attorney be involved in a refinance situation, the transaction will be flagged automatically in STEPS for underwriting review.

When encountering a transaction that appears problematic, please ensure that you speak to a Stewart Title underwriter before proceeding to obtain title insurance. We would be pleased to review the transaction with you.

New Streamlined Commercial Search Requirements

Obtaining a commercial policy has never been easier. Effective October 1, 2007, Stewart Title has implemented changes to commercial search requirements in order to facilitate closings and due diligence. Summary of changes For Lenders - Survey coverage is provided regardless of the policy amount and without the need for an existing survey. Searches not required to obtain coverage for all loans up to $10 million:
Zoning Compliance Municipal Work Orders Unregistered Hydro Easements Subdivision/Development Agreement Compliance Fire Department Compliance Orders Under the Residential Tenancies Act, 2006 (Ontario) Electrical Safety Authority File Search for Work Orders Technical Standards and Safety Authority file search for work orders
These searches are not required for loan policies between $10 million and $50 million, provided that the loan to value ratio is not greater than 75% and a suitable statutory declaration is obtained from the vendor (purchase transaction) or borrower (refinance). For Purchasers - Survey coverage available for purchases up to $12 million without the need for an existing survey. The following searches are not required to obtain coverage for purchases of up to $10 million: Zoning Compliance Unregistered Hydro Easements (except for vacant land) Subdivision/Development Agreement Compliance (except if property currently under construction) Please contact Stewart Title to obtain a copy of our most up to date commercial search guidelines.

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:

Buried Underground Water Pipe
While redeveloping his property, our insured discovered that a neighbour to the rear obtained water through an underground pipe which ran under our insured's property. There was no registered easement related to the buried water pipe; however, the neigbhbour claimed a right to a prescriptive easement for the water service. Our insured filed a claim inquiry under his owner's policy.

Resolution: Stewart Title was successful in negotiating with the neighbour's title insurer to share the expense of having the pipe removed and the water service relocated to a public laneway. Stewart Title retained a municipal lawyer to bring the matter before council and was successful in obtaining the municipality's approval to have the water service for the neighbour relocated to the public laneway to service the property.

Missing Title
After our insured had arranged financing for his property, the lender discovered that our insured did not actually have title to the property in question. It was later discovered that the lawyer who acted on the initial transfer to the insured five years prior, had never received any notification that the transfer had not been registered. Also revealed was that the titles to two adjoining properties were incorrect, in that the wrong properties had been conveyed and re-conveyed to various owners several times without any discovery of the mix-up.

Resolution: Upon receiving the claim under the owner's policy, Stewart Title immediately retained a lawyer to complete the various transfers necessary to correct the title to each of the properties. This was completed in time for our insured to obtain the necessary financing from his lender.

Two Legal Descriptions
Stewart Title insured the purchase and mortgage of a property. When the property was to be sold, it was discovered that the property was actually made up of two different legal descriptions; one for the leasehold interest and one for the freehold interest. Inadvertently, the transfer and mortgage were only ever registered against the leasehold interest even though our insured owners intended to purchase the freehold for fee simple interest and the lender intended to mortgage that same interest. The property could not be sold until title was corrected so that the insured owners would own both interests, and that the insured mortgage would be registered against both titles. A claim inquiry was made under the owner's policy.

Resolution: Stewart Title hired counsel to attend court and correct the title, thereby allowing the sale of the property to close in a timely manner.

For the first time ever, Stewart Title's Lecture Series seminars made their way into Western Canada! Having proven to be a success in Ontario, this year the Lecture Series spanned over six cities nationally which included; Woodbridge, London, Toronto, Ottawa, Calgary, and Edmonton.

We extend our thanks and appreciation to all of this year's speakers:

Thank you to all who attended. Please bookmark our events page and check back for our upcoming 2008 Lecture Series dates, speakers and topics!