Hasn’t the government fixed the land title fraud problem?
Feb 26th, 2015 | By John Tracy
During speaking engagements, I often raise the issue of title fraud. When I discuss the possibility that a fraudster could sell your home to an innocent third party and abscond with the proceeds, I usually get the following comment:
“I know this was a big problem a number of years ago but hasn’t it been cleared up?”
My response: “Yes, there were some legal changes made by governments, but title fraud and real estate fraud are still a real and present danger for any homeowner today.”
Here is the source of the confusion:
Previously under old Land Title Act laws, if a fraudster sold your house to an innocent third party the innocent third party got to keep your house.
Now under new Land Title Act laws, you get to keep your house, but you still have to prove that you were the victim of fraud and that you “didn’t do it!”
So don’t be lulled into thinking that the possibility of land title fraud no longer exists. That is what the fraudsters want you to think. In fact, there is no surefire prevention for title or mortgage fraud — as there is no surefire prevention strategy for any form of fraud. The reality is that we can take steps to reduce our risk and ensure we are protected from the negative legal and financial impacts of real estate fraud through insurance products like FCT’s Title Fraud Protection+.
Recovering your title is a legal process and generally costs between $10-15,000. Title insurance is a one-time premium with no deductibles that stays in place for as long as you own your home. Title insurance premiums start at $350 and are based on the value of your home.
Make an informed decision about title insurance for your home as part of your long-term financial plan.