Governmental entities can force mortgage lenders to pay certain tax debts like unpaid GST/HST owed by their borrowers. Stewart’s title policies have always provided coverage for losses due to these super priority liens (or deemed trusts) that were accrued prior to the policy date, and unknown to the lender. However, this coverage is only valid up until the policy ends upon the discharge of the mortgage.
We are excited to announce that Stewart Title now offers an endorsement for lenders* that provides coverage for loss arising from covered super priority liens even after the insured mortgage has been discharged.
If a lender is required to repay an amount arising from a super priority lien that is covered in our title policy*, they can now rely on the Post Date of Policy Super Priority Lien Endorsement to provide this coverage for 10 years following the discharge of the insured mortgage, up to a maximum liability amount of $500,000.