Effective January 1, 2010, the Law Society approved an amendment to the Real Estate Transaction Levy Surcharge Endorsement. The amendment applies to title insured transactions completed on or after January 1, 2010.
The title insurers will indemnify and save harmless the lawyer from and against any claims arising under the title insurance policy(ies), except for the lawyer’s gross negligence or wilful misconduct. For all title insured transactions completed on or after January 1, 2010 and provided that an insured under the title insurance policy(ies) has not alleged that the title insurer has acted in bad faith, the title insurer’s obligation to indemnify and save harmless the lawyer is limited to the limit of coverage available under the title insurance policy(ies).
The Law Society is pleased to announce that, for 2012, the title insurers listed below have provided a Release and Indemnity Agreement in favour of Ontario lawyers and law firms, in a form satisfactory to the Law Society:
- Chicago Title Insurance Company Canada
- First American Title Insurance Company
- First Canadian Title
- Lawyers Title Insurance Corporation
- Stewart Title Guaranty Company
- TitlePLUS (Lawyers’ Professional Indemnity Company)
- Travelers Guarantee Company of Canada
With the Release and Indemnity Agreement in place, the real estate transaction levy surcharge will continue to be waived for real estate transactions where one or more of the aforementioned title insurers has issued a title insurance policy(ies) in favour of all transferees and charges obtaining an interest in or charge against the land which is the subject of the real estate transaction, provided the lawyer is not also acting for the transferor in respect of the transaction and the other usual levy requirements are met.