In this post and in the spirit of Fraud Protection Month we would like to raise awareness about the importance of Title Insurance.
The Financial Services Commission of Ontario has created a very helpful and informative brochure for the consumer about title insurance, which can be found by clicking ‘FSCO.‘
In this post we will highlight parts of the title insurance brochure and encourage you to visit the Financial Services Commission of Ontario web site to read the entire brochure.
What is Title Insurance?
Title insurance is an insurance policy that protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership.
What does Title Insurance Cover?
For a onetime fee, called a premium, a title insurance policy may provide protection from such losses as:
Unknown title defects (title issues that prevent you from having clear ownership of the property);
■ Existing liens against the property’s title (e.g. the previous ownerhad unpaid debts from utilities, mortgages, property taxes or condominium charges secured against the property);
■ Encroachment issues (e.g. a structure on your property needs to be removed because it is on your neighbour’s property);
■ Title fraud;
■ Errors in surveys and public records; and
■ Other title related issues that can affect your ability to sell, mortgage, or lease your property in the future.
What is Title Fraud?
Title fraud (or real estate title fraud) is a form of real estate fraud that harms individual homeowners and their lenders. Title fraud typically involves a fraudster using stolen personal information, or forged documents to transfer your home’s title to him/herself (or an accomplice), without your knowledge. The fraudster then gets a mortgage on your home and disappears with the money.
Need Title Insurance?
If you are not certain whether you have title insurance or not, it would be best to contact your Lawyer and seek legal advice as to whether it was obtained at time of the purchase of your home / property. Contact us; we may be able to help you as well by directing you to title insurance providers here in Canada.
It’s fraud prevention month 2015 in March and Trusterra Mortgage will endeavor to provide relevant and informative content regarding how to avoid fraud.
To start fraud prevention month 2015 we would like to share tips from the Government of Canada Competition Bureau.
Tips to Protect Yourself from Fraud
Don’t be fooled by the promise of a valuable prize in return for a low-cost purchase.
Be extra cautious about calls, emails or mailings offering international bonds or lottery tickets, a portion of a foreign dignitary’s bank account, free vacations, credit repair or schemes with unlimited income potential.
Don’t be afraid to hang up the phone, delete the email or close your Internet connection.
Don’t purchase a product or service without carefully checking out the product, service and company.
Don’t be afraid to request further documentation from the caller so you can verify the validity of the company.
Don’t disclose personal information about your finances, bank accounts, credit cards, social insurance and driver’s license numbers to any business that can’t prove it is legitimate.
Shred unwanted personal information such as bank statements, credit card bills, unwanted receipts, cheques, pre-approved credit applications and old tax returns.
Check your credit report every year and report problems immediately.
If a scam artist contacts you, or if you’ve been defrauded: Report it! Your reports are vital to the anti-fraud efforts of law enforcement agencies.