Title Insurance
Title insurance is unlike any other kind of insurance. It is not home insurance, which protects the contents of the house or the structure; it is an insured statement of the condition to the title of the property at the time the policy is issued. Title insurance provides protection against issues like survey defects, unpaid liens, encroachment issues, construction liens, defects in title, costs arising from building code violations, as well as real estate title fraud.
The incidence of real estate title fraud in Canada
continues to be on the rise. In spite of recent changes to
legislation in Ontario, this type of fraud can have
devastating personal and financial effects on its victims,
all of which can be prevented with title insurance. As your
trusted advisor, we are taking a proactive approach with our
members to help protect you from the devastating effects of
real estate title fraud.
How does real estate title fraud occur?
When real estate title fraud happens, a fraudster has
typically done the following:
- Forged the property transfer/deed;
- Registered the title in his or her name;
- Forged a discharge of the home’s existing mortgage; and
- Borrowed against the clear title.
Real estate title fraud is when someone could make a claim
against a homeowner’s ownership of the property. Here is one
of many stories that illustrate how title insurance can
protect you.
Situation
Real estate title fraud is widespread across Canada. Real
estate industry insiders estimate the average case of real
estate fraud at $300,000. In comparison, the RCMP estimates
the average credit card fraud case in Canada to be $1,200.
Industry insiders also estimate that real estate title fraud
costs Canadians between $300 million and $1.5 billion each
year. 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. However,
despite the rise in title fraud, and a booming real estate
market that is pushing housing prices to all-time highs in
many communities across the country, a survey commissioned
by First Canadian Title in 2005 suggests that one in three
Canadian homeowners has no knowledge of one of the most
important ways to protect their biggest investment – title
insurance.
The Solution
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. The Consumers Council of Canada (CCC) recommends the
purchase of title insurance for both new homebuyers and
existing homeowners.
For a one-time premium, title insurance is the most
effective and inexpensive way to insure your property. Title
insurance covers all legal expenses related to restoring
title and is also available to existing homeowners long
after they have purchased their properties.
What is Identity Theft?
Title fraud often involves identity theft. According to the
Office of the Privacy Commissioner of Canada, identity theft
is the unauthorized collection and use of your personal
information, usually for criminal purposes.
If it falls into the wrong hands, a fraudster can use your
personal information to:
- Open credit card and bank accounts;
- Redirect your mail;
- Secure employment; or
- Ruin your credit history.
The title insurance package being offered includes a one-time premium for identity theft coverage, which will protect you from the effects of identity theft.
Please note that if you order a policy, the fee will be deducted from your Credit Union account. Please ensure that your account contains sufficient funds. Contact your branch for more details.
Copyright © 2006 FCT Insurance Company Ltd. All rights
reserved
Source:
www.protectyourtitle.com.
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- To find out more about title insurance and identity theft protection for you and your largest investment, please contact your branch or to order a policy, click here.
