As a leading global title insurer, Stewart Title has over a century of experience in providing title insurance coverage to lenders and property owners. The coverage provided, particularly against loss arising from a challenge to the validity of a mortgage because of fraud, allows lenders to confidently close their mortgage transactions.
Our residential loan policies insure against loss in the event that the validity, priority or enforceability of the insured mortgage upon the title is challenged - matters that affect the lender’s future ability to enforce its mortgage in the event of a default. Our residential policies also contain covered risks for many off-title matters that exist, but are unknown at the policy date, such as a lack of vehicular and pedestrian access to the land, work orders and zoning non compliance.
Other notable coverage in our residential loan policy includes:
Policies contain a covered risk insuring against loss due to any violation, variation, or adverse circumstances affecting the land that would have been disclosed by an accurate survey, including but not limited to any existing improvements located on the insured land encroaching onto the adjoining land; and any existing improvements located on adjoining land encroaching onto the insured land. Lenders often rely on this coverage in lieu of obtaining an up-to-date survey/Real Property Report/certificate of location. This allows transactions to close on time and forgoes the cost of a survey/real property report/certificate of location.
Lenders are protected against losses in the event that the validity or enforceability of the insured mortgage is challenged due to title fraud. Our policies also protect the lender for loss arising from the insured mortgage being fraudulently discharged, assigned, released, transferred or modified after closing.
Built-in gap coverage protects the lender against losses arising from intervening registrations that could take place between the date of closing and the date of registration, providing all underwriting criteria have been met. This allows the transaction to close on time, with funds and keys being released to the respective parties.
Our post-closing obligations include paying the costs, legal fees and expenses incurred in defending the lender’s interest in title to the extent that a title challenge is based on a covered risk in the policy. Our duty continues until such time as the claim is resolved.
In the event of a claim, it is not necessary to pursue the lawyer/notary who acted on the transaction or establish negligence. Claims are handled without having to commence proceedings against third parties in order to recover losses.
Have a borrower who didn’t obtain title insurance when they first purchased their home? Stewart Title offers an Existing Owner Policy, which provides similar protection as a Gold Owner Policy, but is modified by an "existing owner" endorsement. The policy date is the date the homeowner first purchased their property. It is a cost-effective way for homeowners to obtain protection against losses arising from real estate title fraud.
When a lender is experiencing difficulty with a title-related matter that is preventing the transaction from closing, our knowledgeable, experienced underwriters can provide solutions. We can insure many types of unusual property-specific title or off-title problems, reducing the possibility of facing a delayed closing or future problems. Many of our underwriters and claims counsel are lawyers and law clerks and are uniquely positioned to provide solid support.
Stewart Title’s financial strength and claims paying ability are recognized by leading companies that measure financial performance. We are consistently honoured with superior ratings. Our policyholders can count on us to resolve claims in a professional manner. Our experience, combined with a practical, results-oriented approach, ensures that we deal with each claim in a timely manner.
Lawyers and notaries know that Stewart is a trustworthy, reliable partner whose competitive, comprehensive title coverage is backed by knowledgeable support. That is why many legal professionals recommend Stewart Title to their clients and network of lending professionals. We can work with the lawyer/notary to ensure the transaction closes on time, providing the lender with security and peace of mind. By placing a lawyer/notary at the forefront, both sides have the benefit of independent, professional legal advice during the entire transaction.
Contact us for additional information.
This website is intended to provide information that is of a general nature and is subject to modification. Coverage and requirements can vary depending on the nature of the transaction and location of the property involved. Please review your actual Stewart Title policy for full coverage details.