The insureds bought a home in Calgary, and their closing date was July 5. The insureds had maximum coverage with a title insurance policy.  The deed got sent immediately to be registered. Due to delays at the land registry office, the deed got officially registered on July 19. However, between July 5 and July 19, a judgment creditor of the seller registered a Writ of Enforcement against the Property. Which effectively constituted a lien on the title that took priority over the insured owners and their lender.

Since the insured had maximum coverage with a full title insurance policy, Chicago Title paid the amount of the judgment against the seller. And they obtained a discharge of the writ from the title for $26,643.75. Your clients are covered from such title defects with a title insurance policy, but a GAP-only policy does not cover title defects.

Watch the video to learn more about the differences between Title insurance and Gap-only coverage