Title insurance is a one time payment that protects the purchaser of a home, or the existing owner of a property against fraud and title defect. Title insurance exists for both residential and commercial real estate. Residential title insurance can be purchased at the time of you closing on a residential home, or if you already own your home you can purchase title insurance any time.
Title insurance protects against several types of fraud and risk, including: title fraud, mortgage fraud, unforeseen mistakes in public records, encroachment issues and more. Having a title insurance policy means you are able to make a claim and collect money based on the value of your house at the time of purchasing title insurance.
As your home increases in value from the time of purchase as a result of changes in the real estate market or renovations you do on the home like adding a second storey, putting in a garage or a pool, this increase in value can be reflected in your title insurance. You can update your policy or get an entirely new policy to account for your home’s increase in value. Or you can add a market value endorsement to your policy.
What is title fraud?
Title fraud happens when the ownership of a property is fraudulently changed or documents are forged to allow a fraudster to illegally sell your property. This happens frequently when people are on vacation or away from their home for an extended period of time. Mortgage fraud occurs when a mortgage is registered on your home without your knowledge or consent so the cash value of the mortgage can be obtained by the fraudster who registered the mortgage.
30 homes in the Greater Toronto Area were fraudulently sold or mortgaged in between September 2021 and January 2023.
Protect yourself and your home
Most cases of title and mortgage fraud are a result of identity theft and organized crime operations seeking out people and homes to fraudulently sell or mortgage. Through purchasing a title insurance policy that fits your property you can protect yourself, your home and your future from the consequences in case of fraud.
If you have questions about title insurance, contact Daniel & Partners to set up a consultation. Our real estate team has the knowledge and experience to assist you.