There are new reports of title fraud every week, and more and more people are wondering what they can do to safeguard their properties against becoming the next target. In an interview with CBC‘s Ismaila Alfa, FCT President Daniela DeTommaso discussed the matter.
“We’re witnessing a degree of complexity in these frauds we’ve never seen before,” says Daniela. “[Fraudsters are] using fake IDs, but to the naked eye, you wouldn’t know they weren’t who they said they were.”
Homebuyers and current homeowners alike are vulnerable to title fraud. When a person’s property title is stolen or they buy a home that was falsely listed, they have few legal choices. Seeing “innocent people on both sides [of transactions] just heartbroken by something they could never have even dreamt could happen,” is how Daniela describes the situation.
Professionals in the field strongly recommend that homebuyers invest in title insurance. Title insurance is the “greatest security” for homebuyers, according to Tim Hudak, CEO of the Ontario Real Estate Association (OREA).
Protections against title fraud for current homeowners
Even years after closing, homeowners can purchase title insurance to protect their financial investment in their home. However, it may be too late to offer protection once a problem like fraud has been uncovered. According to Daniel, now is the time to buy title insurance. Just like you wouldn’t buy a house without property and casualty insurance. She further says, “there’s no reason you shouldn’t be getting title insurance.” A title insurance policy offers more than financial protection to a homeowner who discovers the theft of their property’s title.
Daniela argues that the title insurance company must likewise defend the policyholder. That implies they will step in and defend the insured as soon as they realize title fraud has occurred. Costs are entirely covered by them.
Legal fees to clear a home’s title can run into the tens of thousands, and there are further expenses associated with uncovering the fraud and managing the legal proceedings.
It’s not just making up for that huge loss,” Daniela says. As an added bonus, you won’t have to worry about the time or money it takes to confirm your identity because someone else will do all of it for you.
Don’t put off getting homeowners insurance until your house is a news story. Existing FCT homeowner’s title insurance protects you and your property from potential risks.