How can you protect your house from being taken by fraud?

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The purchase of a property is a huge occasion for every home buyer and is, unfortunately, very stressful. It is important that the transaction closes smoothly, however equally important is to ensure that you do not fall victim to fraud.

Recently real-estate fraud has been increasing rapidly, especially in regards to illegal activities in the property title of home owners.  It can turn out that someone registers a mortgage against your title and disappears with the money, leaving you with a mortgage in your name. Another possibility could be that a scammer sells your house, under your name, and takes off after receiving the proceeds.

During the process of purchasing a property, the lawyer needs to ensure that the house will be transferred over with a clean property title. This means that any problems that were connected to the property title of the previous house owner or any other problems should be solved and you should receive a clean title. The lawyer is not responsible, nor able, to protect you from any illegal activities occurring against your house.

Usually people do not know about any illegal process occurring and only learn of it once the fraud is complete. Here are a couple examples of recent fraud occurrences:

1)  A client sent his property tax payment to the city and he receives and answer saying that he doesn’t need to pay as the house no longer belongs to him. This is the first time that he learned that his house was sold without his permission.

2)  A son wanted to sell his house to his parents, but was told that the house was already sold.

3)  A woman got a phone call from a collection agency claiming that she has not paid her mortgage for the past 3 months. This house has never belonged to her and during the process of sorting out the issue it turned out that she “bought” two additional houses with a combined mortgage of $400,000.

These types of fraud scenarios are common in cities such as Toronto, Vancouver, Montreal, and Calgary. However they can also occur in small cities and across the provinces, especially when the purchase doesn’t include a mortgage (but can also occur when a mortgage is involved).  The scammer immediately moves the money to a third-party and the so called new owner disappears.

It can be a negative effect on your health care. You must have one or several mortgage / s. You are not carrying out these illegal activities. Regardless of the outcome, it has been resolved.

We’ve taken credit card disputes for example. The dispute is ongoing. Unfortunately, you’ll not be able to get in touch with the fraudulent activities. Here you can find out how to solve the issue.

So what can you do? You can purchase title insurance (this is not a sales pitch; I am not offering this product). It can be acquired during the purchase of the property. Owning this type of insurance. You are the owner of the house.

The list of important issues. For example:

  • The seller made changes to the house. It is a condition of your own expense. If you have this insurance.
  • It becomes the insurance company.
  • After the purchase of a house, it’s not a problem. Again, the insurance company will take care of the problem.

For the last point, I would like to ask for the lenders. This is a document that confirms the property lines. If there is no such document available. This certificate is worth more than $ 500. I see no reason to order one. Title insurance would cover these problems.

It will be a little bit longer. In many cases, banks agree to protect themselves. If you want to protect yourself. But you are still interested in the banknote.

I hope you never become a victim of fraud. However, if something happens to you, then you have this insurance. If you already mentioned, you can register it while you are registering your mortgage with your lawyer. If you decide to get the insurance company?

I hope this information was useful to you. If you liked the article, please share it with your friends.

My work is to protect your finances.