Please circulate this bulletin within your firm.
New Remote Signing Endorsement for Lenders
During COVID-19, legal professionals are facing new challenges with closing real estate transactions, particularly with lenders raising concerns around accepting the remote signing of mortgage documents. While Stewart Title’s comprehensive title insurance coverage, including title fraud coverage, continues to apply even if a transaction closes remotely, we understand that lenders may require additional assurance in this regard.

Accordingly and effective immediately, we are pleased to announce that for the duration of this public health challenge, we will be automatically attaching our new  Remote Signing Endorsement to all residential and commercial title insurance policies for lenders. There is no additional cost associated with this endorsement.

This endorsement confirms to lenders that Stewart Title does not require face-to-face meetings as a precondition to obtaining title insurance, and that our policies will continue to provide the comprehensive coverage they rely on.
Highlights of the endorsement include coverage for loss due to:
  • Invalidity or unenforceability of the Insured Mortgage upon the Title because the Insured Mortgage and any other documentation required by the lender is obtained by way of remote signing
  • Title fraud affecting the validity of the Insured Mortgage arising from forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation
  • The use of remote signing resulting in:
  • the divestiture, subordination, or extinguishment of the lien of the Insured Mortgage
  • the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage
  • the failure of the Insured Mortgage to be registered on Title to the Land
The Remote Signing Endorsement also reassures the lender that Stewart will not deny liability under the policy, or any endorsements issued with the policy, on the grounds that the Insured Mortgage was signed by the borrowers via remote signing.

Let lenders know they are protected whether you obtain signatures in person or remotely.
To further assist you, we have also prepared a letter you can send to your lender clients providing assurances that Stewart Title’s coverage will not be compromised or invalidated in the event a real estate transaction is completed remotely.

Please note that lawyers and notaries must continue to ensure that they comply with their land registry and law society/notary society requirements to ensure the mortgage is in a registerable form.

Our Underwriting Team is available to support you.
If you have any concerns about a transaction, speak with a Stewart Underwriter. Our experienced team continues to be available to answer any questions, provide assistance with any challenges and help close your deals.

Stewart Title stands firmly behind you during these difficult times. 
As you know, Stewart is committed to supporting the legal community by providing coverage and tools to ensure transactions can continue to close as efficiently as possible, even as you adjust to new limitations such as office closures and social distancing. For a complete list of the ways in which we can help, visit stewart.ca/covid-19.


Should you have any questions, please contact your
  April 27, 2020
NTL (excl. PE, NT, NU, YT )
Endorsement is not available for Vendor Takeback (VTB) Mortgages.

This bulletin is intended to provide general information only. For full coverage details, please refer to a copy of our policy. Please note that we continue to monitor these changing circumstances and will send updates if there are any changes to this coverage. 

A leader in the Canadian title insurance industry, Stewart Title’s unwavering philosophy is that the role of a title insurer in Canada should be to underwrite risk, allowing legal professionals to provide legal advice and prepare documents. Stewart Title does not participate in or support programs that reduce or eliminate the lawyer's/notary's role in real estate transactions. To find out more, visit stewart.ca   or call (888) 667-5151.
 
The confidentiality and protection of personal information is important to Stewart Title. To view our privacy policy, visi t   stewart.ca/privacy.