Based on our extensive experience with fraud claims and the feedback of a number of your fellow practitioners, we've created a checklist to help you take steps to avoid fraud.

Most of us find it hard to believe that family members would be involved in perpetrating a fraud on a parent, and yet it is more common than we would like to believe. Children defraud their parents. Brothers and their sisters defraud each other and even spousal fraud have all been recorded.

Rachel* the true registered homeowner asserted that her son placed an insured mortgage through a forged power of attorney and used the proceeds to pay down a significant portion of his business debt.

Chicago Title’s duty to defend triggered an in depth investigation. In fact, a sizable fee has been paid to retain counsel to investigate the authenticity of the legal documents and to defend the validity and enforceability of the insured mortgage. Dealing with family members' alleged fraud is always a delicate situation, and we deal with all situations with professionalism and timeliness.

We understand that your house is not just a house; it is your most important asset; it is where you build your dreams and create priceless memories, and it needs to be protected. For a competitive, one-time premium, an owner’s title insurance policy protects the purchaser or the existing owner from fraud and title defects.

* Names and identifying details have been changed to protect the identity of the involved parties

 

Fraud continues to plague the mortgage industry, with lenders and homeowners at risk. Recently Rita* and her husband went to refinance their property. To their horror, they discovered a $410,000.00 mortgage on their home.  The mortgage had only recently fallen into arrears. The lender held back a year of payments at the time of the original mortgage advance.  The couple was shocked and dismayed; how could a mortgage be registered on their home without their knowledge?

 A thorough investigation revealed that the $410,000.00 mortgage was forged and their identities had been stolen. The homeowners stated they knew nothing of the insured mortgage and did not benefit from the proceeds.

Fortunately, the lawyer acting for the lender purchased title insurance from Chicago Title Insurance Company Canada. Chicago Title paid the outstanding balance to the lender and the homeowners regained their unencumbered home. Without title insurance, the end of the story would have been very different.

For a competitive, one-time premium, loan and owner title insurance policies protect the lender and homeowner from fraud, title defects, survey matters, and so much more.

* Names and identifying details have been changed to protect the identity of the involved parties

Rena* purchased her dream house a few months ago. She was making the biggest purchase of her life and to ensure that her asset was protected, her lawyer recommended a Chicago Title policy. After going through the coverage, she quickly agreed to it.

Rena was settling in nicely in her beautiful property until she discovered something that completely shocked her. A mortgage had been placed on her home! She knew that something was wrong as she had purchased her house for cash and had not arranged any financing. Unsure what to do, she contacted Chicago Title. We immediately retained counsel for the insured homeowner and kept her fully updated throughout the process. The investigation showed that the post policy mortgage was fraudulently registered.

Our legal counsel obtained an order from the land titles director removing the insured mortgage charge as a fraudulent instrument under the Land Title Act. Rena was relieved that we had rectified the situation so quickly and was most thankful to Chicago Title Insurance Canada.

For a competitive, one-time premium, an owner’s title insurance policy protects the purchaser or the existing homeowner from fraud.

* Names and identifying details have been changed to protect the identity of the involved parties

 

In 2020, we retained counsel for an insured lender who was being sued by a woman who asserted the insured mortgage on her home was invalid and unenforceable. She claimed to be the ‘true’ owner of the property. She stated the property was transferred to the borrower as part of an agreement between herself and the borrower. The borrower then proceeded to encumber the property with the insured mortgage. She stated the borrower was not authorized to place the insured mortgage on the property.

We engaged counsel for the insured lender to establish the mortgage is valid and enforceable. The position is that the insured is a bona fide encumbrancer without knowledge of the woman’s alleged current interest in the property. This case is on going as Chicago Title is working diligently with the lender to protect their encumbrance on the property.

For a competitive, one-time premium, a loan title insurance policy protects the lender from fraud and so much more.

 

Jenna’s* leisure trip to a mall turned into a true nightmare when she found that her car had been broken into. Her wallet carrying all her credit cards and ID was stolen. She prudently reported the incident to her bank and the credit card companies and replaced her ID.

Several weeks later, Jenna discovered a lender had placed a mortgage on her home. She could not fathom that someone could register a fraudulent mortgage without her knowledge. She contacted her lawyer, who contacted Chicago Title to assert that the insured mortgage was forged and her identity had been stolen.

Chicago Title investigated the fraud and retained counsel to defend the insured lender in a suit by the true registered owner. After a thorough investigation, our counsel managed to track the disbursement of funds and recovered a significant amount of the money. We then paid the remainder of the loan’s outstanding balance to make the lender whole and Jenna regained clear title to her home.

Without title insurance, this story would have had a very different ending.

For a competitive, one-time premium, loan and owner title insurance policies protect the lender and homeowner from fraud, title defects, survey matters, and so much more.

* Names and identifying details have been changed to protect the identity of the involved parties

 

Get additional tips and resources from your Chicago Title Regional Manager.

Ontario/Western Canada 
Ontario/Ouest Canadien

Head Office
Siège social

1.888.868.4853
residentialtitle@ctic.ca
commercialtitle@ctic.ca
chicagotitle.ca

Quebec/Atlantic Canada
Québec/Atlantique 

Quebec Office
Bureau du Québec

1.877.849.3113
souscription@ctic.ca
infoatlantic@ctic.ca
ctic.ca

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