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Title Insurance
What you need to know

Expert Q & A | Real Life Fraud Stories | Protect Yourself

What is Real Estate Title Fraud?

Real estate title fraud is widespread across Canada. Real estate industry insiders now peg the average case of real estate fraud at $300,000. In comparison, the RCMP estimates the average credit card fraud case in Canada to average $1,200. Industry insiders estimate that real estate fraud costs Canadians between $300 million and $1.5 billion each year.

How it can happen to you?

Impersonation
This type of fraud often occurs when an individual applies directly to a lender, or through a mortgage broker, for a loan secured by real property. In this case, the title is held either jointly by husband and wife, or by one of the spouses alone, and one spouse or co-borrower/consenting spouse submits the loan application in order to have the mortgage executed.

Identity theft
Although much more sophisticated, this type of fraud is on the rise. In the cases of identity theft, the fraudster targets an individual - usually of high net worth - who owns real property of significant value, either free and clear of mortgages or with minimal secured debt. Once the fraudster determines the individual whose identity he or she will assume, they use that identity (which purposefully matches that of a lender's ideal client) to apply for a mortgage. Using the victim's credit worthiness and land security to make the transaction enticing to the lender or broker, the fraudster receives the loan approval easily.

Currently title insurance is the only way to protect against real estate title fraud.

What is title insurance?

Title insurance protects new and existing homeowners, commercial property owners and lenders against losses as a result of title defects and claims against a property not uncovered in a title search. Title insurance provides protection against issues like unpaid liens, encroachment issues, construction liens, defects in title, costs arising from building code violations, as well as real estate title fraud.

If real estate title fraud occurs, the onus is on the homeowner to prove the crime and it can be very costly - financially and emotionally - to restore title. For a one-time premium, title insurance is one effective and inexpensive way to ensure a property is protected. It covers all legal expenses related to restoring a title and is available to existing homeowners long after they have purchased their properties.

To arrange for your Platinum Title Insurance Policy for existing homeowners click here or call 1.800.433.9122.

Copyright © 2006 FCT Insurance Company Ltd. All rights reserved
Source: www.protectyourtitle.com