Title Insurance & Title Guard
Q - I have been reading reports about mortgage fraud. I will be purchasing a home and would like to know if there is anything that I can do to protect myself?
A - There are currently two products in the market place that can be of help and are worth checking out.
This policy protects the homeowner with problems related to the title of the home. 'Title' is the term used to describe the right of ownership of the land. When a home is purchased, the title is transferred to the new owner. Title insurance protects the owner against pre-existing title defects. Defects may include such things as zoning non-compliance, encroachments, liens, rights of way, easements even inaccurate property lines. It can also protect your investment by covering pre-existing losses resulting from fraud and forgery. Title insurance cannot prevent fraud.
Title Insurance is usually purchased when the home purchase is made or when refinancing. This policy protects the homeowner for as long as he owns the property. It requires a one-time fee. It can be purchased through the lawyer/notary handling your real estate transaction, a title insurance company or some other insurance/financial institutions.
The big difference between Title Insurance and Title Guard is that Title Guard can prevent title fraud.
TitleGuard Canada is a new company recently launched based out of Vancouver. It offers a subscription service which monitors any attempts to register legal documents at a Land Title office. If such should occur, owners/investors are immediately notified enabling them to intercept fraudulent transactions before completion. This in turn, prevents the criminal element from using the fraudulent titles to obtain new mortgages or to simply sell the property and pocket the gains.
More information about this new product can be obtained at http://www.titleguardcanada.com.
Mortgage based frauds continue to escalate and are responsible for hundreds of millions of dollars worth of losses in North America annually. It is wise to investigate all measures to protect your real estate investment.