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Western 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

For all purchase and refinance transactions a current search must be conducted and provided to Stewart Title at the time of order. In addition, a subsearch should be conducted on the date of closing. Please advise Stewart Title, prior to closing, of any registrations occurring between the date of the original current search and the date of subsearch.

Gap Coverage

Gap coverage is provided in all Stewart Title commercial owner and lender policies. In addition, Stewart Title offers a commercial Gap Policy (available for both owners and lenders) that provides coverage for gap only.

Gap coverage in both forms of policy insures against loss or damage arising from intervening registrations that arise between the date of closing and the date of registration of the instrument giving rise to the insured interest. (i.e. transfer or mortgage)

Please contact a Stewart Title underwriter for details of both Stewart Title’s commercial policy and gap only policy.

Survey/Real Property Report Requirements

FOR OWNER
Commercial Transactions Under $12,000,000:	An up-to-date survey/real property report is not required to obtain the survey/real property report coverage contained in the Commercial Owner’s Policy.
Commercial Transactions over $12,000,000:	An up-to-date survey/real property report is required to obtain the survey/real property report coverage contained in the Commercial Owner’s Policy. Please note, however, that survey/real property report coverage may be negotiated for commercial transactions over $12,000,000 in the event that an old survey/real property report 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/real property report is not required to obtain the survey/real property report coverage contained in the Commercial Lender’s Policy.

Off Title Searches

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. Writ Registry Search (Sask) is required against the current vendor(s) and if a mortgage is being insured, against the purchaser(s)/mortgagor(s).
2. Public Utility Certificates/Arrears. (for utilities that have the ability to form a lien on title)
   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. 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 not required against prior corporate owners.
5. Zoning Compliance.
   For Owner: If the purchase price is under $10,000,000 no report is necessary.
   For Lender: If the loan amount is under $10,000,000 no report is necessary in order to obtain a zoning endorsement. If the loan amount is between $10,000,000 and $50,000,000 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 $50,000,000. 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 the land is vacant, the client or solicitor should confirm that zoning corresponds with future plans for development/improvements.
6. Work Orders.
   For Owner: If the purchase price is under $1,000,000 no report is necessary in order to obtain our municipal building department work order coverage.
   For Lender: If the loan amount is under $10,000,000 no report is necessary in order to obtain our governmental and quasi-governmental (excluding environmental) work order coverage. If the loan amount is between $10,000,000 and $50,000,000 no report is necessary in order to obtain our governmental and quasi-governmental (excluding environmental) work order coverage provided that we receive confirmation that the LTV is not greater than 75%.
7. Estoppel Certificates/Status Certificates this search is required for all condominium/strata transactions except for condominium/strata refinances under $2,000,000.
8. Subdivision and Development Agreement Compliance
   For Owner: This search is not required for owner policies under $10,000,000 unless the property is currently under construction, in which case this search should be completed regardless of the policy amount. For all transactions over $10,000,000, this search is required.
   For Lender: This search is not required for lender policies under $10,000,000. If the loan amount is between $10,000,000 and $50,000,000 no search is required provided that we receive confirmation that the LTV is not greater than 75%. For loans over $50,000,000, this search is required.
9. Fire Department Compliace searches are not required for lender policies under $10,000,000. If the loan amount is between $10,000,000 and $50,000,000 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 $50,000,000 no coverage is provided for this matter.

Items Not Covered By Commercial Policies

Please Note- Existing Owner and Existing 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 Searches.
3. Residential Tenancy/Legality of Rents.
4. Water Potability and Quantity.
5. Safety Codes Council.
6. PPSA Re: Chattels.
7. Estoppel Certificate/Status Certificate for Condominium (except as provided in No. 7 above).
8. Fire Department Compliance (except as provided in No. 9 above).
9. Bank Act Issues.
10. Bankruptcy Act.
11. Elevator Issues.
12. Public Health Department Issues.
13. Septic System.
14. Boilers Safety Association.

NOTE: Stewart Title Commercial Policies do not provide coverage for the foregoing matters. This list is for guidance only and is not intended to be an exhaustive list of searches that Solicitors should consider. Solicitors should determine if any of the above or other searches are relevant to the subject transaction and if so, which of the above or other searches need to be conducted to adequately protect their client’s interests.