Would you buy a car without purchasing insurance to cover damages or theft? Of course not, besides car insurance is mandatory. Conversely, would you purchase a home without title insurance? Here is a scenario that will answer that question loudly and definitively. Let’s assume you own a very expensive home. You’ve worked extremely hard to be able to afford this piece of property, and have been living in it for quite a few years. Now that you have the time, you decide to go on vacation. While away, the unthinkable happens.�
An unscrupulous individual happens to drive by your home one day and notes the address. Sensing your home is worth quite a bit of money, he makes a trip to the Land Title Registry and searches for your title to obtain your name and what type of mortgage you have. He then purchases some legal forms which he uses to signify he owns your home. He forges your name and that of an attorney, and heads straight to the Land Registry office where he informs them he is selling the house. Subsequently, he takes a mortgage out on your home and takes off with the money.
When you return from vacation, you find you no longer own your home, but to make matters worse you have an additional mortgage to pay as well. Based on a true story, the couple in question not only lost ownership of their home, but incurred legal expenses, medical expenses, and lost their business as well.�
Can this happen to you? Yes. As reported by the Canadian Institute of Mortgage Brokers and Lenders, “mortgage fraud is costing the industry $300 million a year.”
Why do you need title insurance? For this very reason: Without it, you will have no recourse; no place to turn for compensation. With it, however, you are covered by legal fees as well as losses incurred by mortgage fraud.
When considering title insurance, ensure that your title insurance company is not only licensed, but checks on every aspect of the title property to guarantee there are no liens or other problems associated with the property.
Before purchasing title insurance, check online as well as contact companies by phone to determine the best rate to meet your immediate needs.
Protect your ownership rights. Get your title insurance quote now.
