As a homeowner, you've probably heard the alarming news stories about title fraud and wondered if your home could be the next target. Unfortunately, title fraud is becoming more sophisticated and frequent, with fraudsters falsifying identification and pretending to be someone they're not. It's a devastating situation that impacts innocent people on both sides of transactions.
But don't worry; you can take steps to protect yourself and your property. Daniela DeTommaso, President of FCT, recently spoke about this issue in an interview on CBC's Metro Morning with Ismaila Alfa. She emphasized the importance of being proactive and purchasing title insurance as part of closing. In fact, Tim Hudak, CEO of the Ontario Real Estate Association, described title insurance as "the best safeguard" for homebuyers.
So don't leave the fate of your home to chance. By taking the necessary precautions, you can rest assured that your property is protected against title fraud. Keep reading to learn more about how title insurance can give you peace of mind and safeguard your most valuable asset.
What is Title Insurance
Title insurance is a policy meant to protect home buyers and mortgage lenders from damages or financial losses caused by a wrong title due to title defects. It examines public records and legal documents related to a property to identify any potential title defects or issues. If a title defect is identified, the title insurance company will work to resolve the issue before the property is sold. If the issue cannot be resolved, the title insurance company will compensate the insured party financially.
When you purchase a home, your lender will require you to purchase a lender's title insurance policy to protect their interest in the property. The homebuyer typically pays for this policy, a one-time expense.
Why Purchase Title Insurance Now
As mentioned earlier, the best time to purchase title insurance is now. Title insurance is an option for homeowners even years after they take possession of the property. You are protecting yourself from any future title issues that may arise. Even if there are no known issues with the title at the time of purchase, issues may arise. For example, a previously unknown lien could surface, or there could be a mistake in the property description.
Benefits of Title Insurance
You benefit from more than just being covered with a title insurance policy. The title insurance company must defend, meaning they step in and protect you when they discover that title fraud has occurred. This includes paying all the costs, including legal fees, to restore your title, which can be in the tens of thousands. The company also handles all the legal processes and investigates fraud.
Title insurance compensates for the significant loss and provides peace of mind, knowing that someone is navigating the process for you. In case of any costs, the company will cover the expenses, which include proving that you are whom you say you are.
The Importance of Title Insurance
Just like you wouldn't buy a house without property and casualty insurance, you should not buy a property without title insurance. Title insurance provides a safeguard for homeowners against title fraud and any other title-related issues that may arise.
Fraud is a serious issue that can happen to anyone and can be devastating. Innocent people on both sides of the transaction can be affected, and the consequences can be severe. Protecting yourself and your property with title insurance is a crucial step towards preventing title fraud and ensuring that you are safeguarded against any title-related issues that may arise.
Bottom Line
In conclusion, title fraud is becoming more common and sophisticated, making it crucial for homeowners to protect themselves and their property. Purchasing insurance immediately ensures you're covered if title fraud occurs. The benefits of title insurance, including peace of mind and financial protection, make it a worthwhile investment for homeowners.
Don’t wait for your home to make headlines if you aren't insured. Protect yourself and your property with an existing homeowner’s title insurance policy from insurance companies like FCT.