NextSTEPS - Coming March 24

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1 NextSTEPS - Coming March 24 What you need to know As announced in January, our electronic policy system (STEPS) will be upgraded on March 24, 2014 to a new version, named NextSTEPS. This compulsory upgrade will take place automatically and will affect the stand-alone version ( or via consumersinsurance.ca in Manitoba) as well as the integrated versions (The Conveyancer and Brief Convey). Beginning March 24, all users will have immediate access to work on and view orders, as well as take advantage of several new enhancements which include: Policy ordering for transactions involving multiple properties (e.g., blanket mortgages). Easy-to-navigate menu options that better organize the steps required to complete an order. Interface improvements such as saving order information to return to at a later date as well as user alerts when required information is missing. A streamlined title qualifications selection process. The ability to revise your order at any time during the process without contacting Stewart Title. Home screen dashboard with access to statements and billing. And more! In preparation of the March 24 upgrade date, we ask all STEPS users to please be aware of the following notes and requirements: Creation of new password (standalone and integrated versions) Your first login to NextSTEPS is possible by entering your existing STEPS username and password credentials. Upon logging into NextSTEPS, you will be prompted to change your password which will be used moving forward. To create a new password, follow the onscreen instructions. For security purposes, passwords must be changed every 60 days Technical requirements (standalone version) Supported browsers Internet Explorer 9, 10 Chrome (any version, with installation of Adobe Reader or Nitro PDF) Firefox (any version, with the installation of Adobe Reader or Nitro PDF) Safari Supported PDF readers Adobe Reader (ver. 8 or higher) Nitro PDF Readers Screen resolution

2 1024 x 768 minimum Internet Connection High-speed internet connection To ensure that your transition to the new application is as seamless as possible, we encourage you to contact your Business Development Manager to learn more and to schedule a training session vol. 1 - NTL

3 Stewart Assyst - Update In October 2012, we announced a new partnership with Telus Financial Solutions, whereby Stewart would assume the responsibility of marketing and promoting Stewart Assyst Real Estate, an electronic mortgage processing application which electronically links lawyers and notaries to lenders. Since this announcement, we have received valuable feedback from the legal community regarding the application. We have been pleased by the overall positive response, with phrases such as 'easy to use', 'convenient', and 'a time saver' often mentioned by users when asked to describe their time with Stewart Assyst. In fact, specific reference is often made to the increase in efficiency provided by integrations with Do Process' The Conveyancer and Brief Convey platforms. As with any new technology, it is natural for some to feel a level of apprehension when exposed to a new way of thinking; with many deferring to the thought that "the old way is good enough". In our experience with Stewart Assyst, we have found that seeing truly is believing. Many perceived concerns are often put to rest through a simple hands-on demonstration of the application. We have come across countless examples of clients who have quickly familiarized themselves with Stewart Assyst, fully embracing its offerings once getting time with it in their office. We continue to work closely with our partners at Telus to further expand the feature sheet of Stewart Assyst (as demonstrated recently by the addition of bridge loan documentation availability from within the platform), as well as continuing our efforts to bring new lenders to the platform. With this in mind, we look forward to showing you what Stewart Assyst has to offer, demonstrating its value as a tool that is beneficial to every law office practicing real estate. For more information on Stewart Assyst, click here. To book your demo today, contact your Business Development Manager or submit a request form online vol. 1 - NTL

4 Which Policy to Order? When to order a Commercial or Residential Policy From a high rise condominium unit in the city to a large piece of vacant land in cottage country, the types of property transactions that your office may process each day can be quite diverse. This diversity may create instances where it may not be clear as to which title insurance policy should be ordered. With this in mind, we would like to take a moment to clarify the determining factors as to when a Residential or Commercial title insurance policy should be ordered: Order residential policy for Residential single family Residential (2-6 units) Cottage properties Residential condominium unit Agricultural (see provisions here) Order commercial policy for* Retail Industrial Service Residential (7 units or more) Vacant land for development Mixed use (residential/commercial) Commercial condominium units Agricultural (see provisions here) *Commercial policies must be ordered directly from Stewart Title via phone, or fax. Ordering instructions can be found here. Should you be unclear as to which policy to order when processing a transaction, we encourage you to contact your local Business Development Manager or a member of our Underwriting Department at (888) vol. 1 - NTL

5 Handling Multi-Unit Properties Stewart Title has created special underwriting protocols which take effect when handling residential properties of 2-6 units. When dealing with a multi-unit property, it is important to identify this fact and to correctly follow Stewart Title's underwriting protocols. In particular, note that a basement apartment is considered to be a second unit and our multi-unit search guidelines must be followed. It is prudent to review the agreement of purchase and sale for indications of a second unit to ensure that your client is obtaining the coverage that they may wish to obtain for the second unit. Indications that there is a second unit include references to assuming tenants or that the property contains multiples fridges and stoves. It is also important to note that if the property has more than 6 units, a commercial policy is required and commercial search requirements will apply. For detailed instructions on how to handle multi-unit residential properties, please contact our Underwriting Department at (888) vol. 1 - ON

6 Disclosing the Examining Counsel Fee We would like to remind members of our Examining Counsel Program of their obligation to disclose the Examining Counsel (EC) fee to their clients. To assist members in communicating this information to clients, we recommend the following options for consideration: Include mention of the EC fee in an introductory letter when discussing options of assuring title. Prepare an acknowledgement re: title insurance that includes such wording as, "We acknowledge that you have advised us that you will be receiving a legal fee for services from Stewart Title Guaranty Company in the amount of $ (inclusive of HST) which is a fee for the legal services of ordering the policy through a secure online platform, informing the title insurer of the various title qualifications for the policy, and providing a report on title as required by the Insurance Act, Ontario." Should you have any questions regarding the above or wish to learn more about our Examining Counsel Program, visit our website or contact your local Business Development Manager vol. 1 - ON

7 Stewart Title has been issuing title insurance policies for over 120 years and our financial strength, stability and claims paying ability make us an industry leader. The following are snapshots of recent files resolved by our claims department: Neighbouring Hydro Seven years after the purchase of their rural property, our insureds were contacted by their hydro company claiming that the hydro line which serviced their property was in fact a private line owned by the neighbouring landowner who was requesting to disconnect the line. Resolution: As an up-to-date survey would have revealed that hydro was in fact supplied by the neighbour's property, this issue was covered as an adverse matter under the terms of our residential Gold Owner's policy. Our insureds opted to install their own electrical production which Stewart Title financed. Condo Unit - Missing Titles Four years after the purchase of their residential condominium unit, our insureds received a letter from the municipality indicating that in addition to the title of their condominium unit, they were to also have received title to the parking and locker units which they had occupied since closing. As they were unaware of the missing titles, tax arrears were now owed on the parking and locker units. A title search revealed that the parking and locker units were mistakenly still registered to the prior owner, originally intended to be conveyed to our insureds with the dwelling unit. Resolution: Stewart Title retained counsel and paid to have title to the parking and locker units transferred to our insureds. Improper Handling of Mortgage Funds Our insureds purchased a home in December 2012, financed with a high ratio mortgage. At the time of the purchase, the vendor also had a large institutional mortgage registered on title. In accordance with accepted practice, the purchase monies were forwarded to the vendor's solicitor who provided a personal undertaking to forward the discharge funds to the outgoing lender and obtain a discharge of the vendor's mortgage. In the spring of 2013, our insureds received a Notice of Sale from the vendor's mortgagee. It turned out that the vendor's lawyer had not forwarded the funds to pay out the vendor's mortgage, but had instead stolen those funds, along with the funds from other transactions, leaving our insureds title subject to the vendor's mortgage as well as their own. Resolution: Stewart Title paid out the vendor's mortgage, and is pursuing the vendor's lawyer for recovery. Title to Restaurant Parking Lot (Commercial Lender Policy) When the mortgage on a restaurant property went into default, our insured lender discovered that the restaurant and adjacent parking lot were actually separate titles. While both properties had been owned by the borrower, the insured mortgage was registered only against the title to the restaurant parcel as the parking lot had been inadvertently omitted.

8 With the borrower unavailable to sign the documents to correct the oversight, our insured lender was at risk to suffer a significant loss as only the security on the restaurant property could be realized, without the parking lot as well. Resolution: Stewart Title retained counsel to bring a court application to have the mortgage rectified by adding the parking lot land to the mortgage, allowing our insured lender to realize on its security without further delay vol. 1 - NTL

9 Lecture Series 2014 We are pleased to once again offer the legal community with complimentary educational sessions on real estate as part of our Lecture Series program. Attendees of these sessions are eligible to receive 3 Substantive CPD credits as required by the Law Society of Upper Canada. This year's topics will cover: Essential practice tips for real estate lawyers Understanding commercial title insurance Title insurance underwriting and claims Upcoming 2014 lectures include: April 10 th - Barrie (Liberty North) April 22 nd - Grimsby (Casablanca Inn) To register and attend, visit Be sure to check back as additional lecture locations will be posted throughout the year. Past lectures are also available to view online at vol. 1 - ON

10 Coming to a City Near You! As part of our ongoing support of the real estate legal community, Stewart Title will be participating in various tradeshows and conference events across Canada. Feel free to stop by and say hello! March Ottawa Home & Garden Show Ottawa, ON March 21 CBA Nova Scotia - Legal Assistants Conference Halifax, NS March Nova Scotia Association of Realtors Dartmouth, NS March 27 RAHB Annual General Meeting Hamilton, ON March 27 CUCM Trade Show Winnipeg, MB April LSUC Real Estate Summit Toronto, ON May 2-3 CCLA Solicitors Conference Montebello, QC May ILCO Conference Huntsville, ON June Solo and Small Firm Conference Toronto, ON 2014 vol. 1 - NTL