|
 RISING WOMEN EXPERTS...
What is “Title Insurance”? Why do I need to get it?
By Marlene Darby of Darby Mortgage Solutions Inc.
Title insurance has been around for many years but it is only now
becoming important and more consumers are hearing about it when they buy new
homes or refinance existing homes. A lot of the lenders are now insisting on
their clients having it and it is a good precaution and provides some
protection against issues like unpaid liens, encroachment issues,
construction (or builder’s) liens, defects in title, real estate title fraud
and costs arising from building code violations.
Fraud by Forgery - One example is that a person can register
forged documents which will effect a transfer of the title of the property
of an innocent person into their name. Then they can register a forged
discharge of the existing mortgage, obtain a new mortgage against the
property and then make off with the money obtained from the mortgage lender
and then not make any payments. That would put the mortgage into default so
then when the lender starts foreclosure proceedings, the registered owners
of the property deny they signed the mortgage. These forged documents do not
require a lawyer to prepare or sign them. They can be done quite easily by
anyone, which in itself, is pretty scary.
Identity Theft Impersonation & Mortgage Fraud - This happens
when a homeowner discovers that they have become a victim of fraud when a
lender tells them that someone has impersonated them to obtain financing on
their property. A mortgage broker is able to arrange for a first and second
mortgage for the impersonator and the transaction can be completed by the
impersonator producing a fake drivers license and other ID at the time of
signing the documents at a lawyer’s office. The funds are then advanced to
the impersonator.
Despite a booming real estate market that has pushed the price of homes to
all-time highs in many communities, a survey done by First Canadian Title in
2005 suggests that 1-in-3 Canadians is unaware of what title insurance
provides for them, but it is the most important way to protect their biggest
investment.
A one-time premium title insurance is the most effective and inexpensive way
to ensure your real estate is protected. Title insurance covers all legal
expenses related to restoring the title and is also available to existing
homeowners long after they have purchased their properties.
Need more advice on Title Insurance? Contact Marlene Darby, Accredited
Mortgage Professional with The Rogers Financial Group at 403.234.8333.
madarby@telus.net
|
