Do you have Title Insurance on your property? You should!
Title fraud is a serious issue that occurs when someone steals a homeowner’s identity using fake ID or forged documents. This allows the fraudster to take away the homeowner’s legal claim to the property and enables them to sell it or refinance it without the rightful owner’s knowledge or consent.
Can you imaging finding out that the the registered owner of your home is someone you have never heard of? Or that there is now a whopping $700,000 mortgage on your home that you knew nothing about? It would be devastating to say the least.
Reporting the matter to the police can be important, but it will not reverse the fraud. The best thing you can do is to take steps to stop it from ever happening.
Protect yourself with Title Insurance
One of the most important and effective things you can do to protect yourself is to get Title Insurance. It will cover losses from title fraud, the legal costs of restoring your right to the property title, and in the case your home was fraudulently sold, the unwitting buyer will get their money back.
It is available in Ontario from several insurers, including; FCT, Stewart Title Guaranty Company, Chicago Title (Canada), and TitlePLUS.
Title insurance will provide protections from such losses as:
- fraudulent registrations against the property,
- unknown title defects which may affect ownership,
- some liens, against the property’s title, such as unpaid debts secured against the property by a previous owner, including;
- Utility bills
- Mortgages
- Property taxes
- Condominium charges
- encroachments,
- right-of-ways,
- errors in surveys and public records.
Title insurance lasts for the entire time that you own the home. As well, most residential title insurance policies extend coverage to:
- Your heirs through a will
- A spouse in the event of a divorce
- Children, if the parents transfer the property to them
This type of insurance is not a requirement in Ontario. Which means, you should discuss whether you need it with your lawyer, title insurance company or insurance agent. Then you can make an informed decision based on your specific situation and needs.
What else can you do to protect yourself?
Outside of getting Title Insurance, there are a few other things you can do to protect you and your property. Including:
- Be wary with whom you share personal information.
- Check bank and credit card statements regularly, as well as your credit report for irregularities, and report any immediately.
- Shred any documents containing personal information before disposing of it.
- Retrieve your mail regularly to avoid mail theft.
- When moving, ensure that you update your address with your contacts and service providers, and have your mail forwarded to your new address.
- Search your property online periodically to see if it is fraudulently listed.
Hope the information helps! If you’d like any additional information or have any real estate questions I can help you with, please let me know. I’m always happy to help!