Sell with 100% Certainty

SecureMyOffer (SMO) is Home-Seller closing insurance that protects sellers if a buyer defaults on a firm purchase agreement by delaying closing, or walks away from the deal altogether. The policy compensates the seller for losses related to the failed sale, including a drop in the sale price, ongoing carrying costs (mortgage interest, utilities, taxes, insurance), and legal fees tied to the failed transaction. SMO may also provide  an emergency equity advance to assist the seller in meeting financial commitments originally tied to the closing – for example, buying their own new house – and eliminating the need for the seller to wait months to access the buyer’s deposit and to resolve other legal battles over the closing default.  

Even firm offers can collapse due to buyer financing issues, job loss, divorce, cold feet, or other events. A firm offer means all conditions have been removed or satisfied, but it does not guarantee your buyer will actually close. In most jurisdictions, once an offer becomes firm, the buyer has no legal right to back out without consequences. But that doesn't prevent defaults and delays from happening. SecureMyOffer ensures you will not be financially stranded if your buyer fails to close on closing day.

A default does not give the seller automatic access to the buyer’s deposit. Far from it. All deposits – even non-refundable ones – are held in a trust account and when a buyer defaults, those funds commonly become entangled in expensive legal proceedings lasting months, or even years. In the meantime, sellers counting on those funds to close their next home purchase are left to suffer the consequences. 

SecureMyOffer ensures you won’t be financially stranded without the deposit money. Your SMO insurance will advance emergency funds to help fulfill your financial obligations. This also allows you as the seller to navigate the ensuing default proceedings from a position of strength, and not financial desperation. SecureMyOffer even takes on the burden and cost of legal proceedings to recover damages from the defaulting buyer.

The premium is based on a number of factors including the level of coverage you choose. A typical policy for a single-family home costs only about $500-$1,500 for coverage up to 20% of your property’s value.

Each policy comes with an aggregate (maximum) limit of insurance which the seller/insured can select. The seller gets three options: 10%, 15%, or 20% of the property value. For example, sellers of a $1 million home could choose $100,000, $150,000, or $200,000 in coverage.

Coverage must be purchased within 10 days of the offer becoming firm, and at least 14 days before the closing date. 

If a firm buyer defaults, SMO covers the following expenses up to the policy limits chosen by you, the insured seller:

• The shortfall between the original firm offer and the final resale price.  If the home ultimately sells for an increased amount, you retain the profit. 
• Additional carrying costs include, but are not limited to, mortgage interest, property taxes, utilities, and home insurance over the period between default and resale.
• Legal fees and expenses related to the failed transaction.
• The cost of additional bridge loans required to unlock equity.

SMO's claims team works directly with your real estate lawyer to verify the loss and process payout quickly — typically SecureMyOffer will deploy up to 50% of the policy limit as soon as possible to the Lawyers Trust account, as early as same day, in the form of an “Emergency Advance Payment” designed to meet the seller’s immediate cashflow demands that result from a default. What happens to the other 50%? It’s reserved to cover the additional expenses of reselling the property.

If your resale price is higher than your original deal, the Seller gets to keep any excess profits.

Eligibility varies by territory but any Home seller with a firm, unconditional offer can apply. 

SMO is currently available everywhere in Canada except Quebec. 

If your buyer fails to close, contact SMO's claims team immediately by visiting https://www.securemyoffer.com/claims or by calling 1(833)766-2329 SMO will work directly with your real estate lawyer and your Realtor to start the claims process and verify the supporting  documentation of the firm offer, default notice, etc…  The claims process is designed to be straightforward and completed in an expeditious manner as we know timing is very important.

1.  Once the claim is reported the Third Party Adjuster will provide your lawyer with a series of claims documents, the main purpose of the claims documents is to assign the legal and financial responsibility of the property to the Insurance Company and to verify the immediate cashflow damages suffered by the seller by examining the Statement of Adjustments.
2. The Third Party Adjuster pays up to 50% of the policy limit directly to the lawyers trust account in the form of “Guaranteed Advanced Payment” for the Lawyer to issue the disbursements to the seller would have received if the buyer had not defaulted. 
3. SMO will work with the Defaulting Buyer and seek to remedy the Default.
4. SMO and the Third Party Adjuster will work with you and your Realtor to Stage the property and cover all additional expenses of reselling the property.
5. When offers come in, they are reviewed, negotiated, and accepted by a committee of industry experts.
6. Then the home is subsequently sold, if there is a decrease in value the insurance company suffers the loss (up to the policy limit) and if the home sells for an increased value the Seller gets to keep 100% of the net profit.

Subject to conditions of your specific policies.

Visit securemyoffer.com or call us at 1-833-SMO-2Day / 1-833-766-2329 to apply directly.

or 

Ask your realtor or lawyer as many of them are familiar with this coverage and can help you decide on the right coverage for you. 

Remember: The deadline to apply is 10 days after all conditions are waived and the offer becomes firm.

No. SMO only covers the damages suffered by the seller if the buyer fails to close. 

SMO covers the seller for delays as well as defaults. Delays are common and your SMO policy is designed to take on the legal and financial risk and liability of such an occurrence. Delays and defaults follow the same claims processing procedure.

SMO takes on the responsibility and legal expenses of recovering damages from the Buyer so the Seller does not need to worry about it. 

No, SMO policies are not refundable, all premiums, fees and taxes are fully earned on purchase.