Montreal, QC (Mar. 15, 2013) – Real estate fraud by identity theft has unfortunately become an increasingly common phenomenon today. An article recently published in La Presse is a telling example of this. This type of fraud has taken on unprecedented scope with the proliferation of other crimes associated with identity theft, which is greatly facilitated by new digital transaction methods. This is what is demonstrated in the cases described by La Presse.
“There is an effective solution for these crimes that greatly facilitates the restitution of titles to homeowners who have been affected,” explained Laurent Nadeau, vice-president of the Title Insurance Industry Association of Canada. (TIIAC) “Mortgage lenders have used title insurance as a means of protection for many years. The public also has access to this product, which unfortunately is not yet widely known.”
Along with the intense anxiety property owners experience when they fall victim to these frauds, they must navigate a complex legal system to restore their title to the property. To do so, they have the burden of proving they were victims of this type of crime. It’s a long, costly process that may require intervention by experts.
With title insurance, the burden of these procedures on the insured owner is reduced, since the insurer is responsible for returning the title to the owner. Owners who take out this type of insurance are protected and will not incur additional costs.
In addition, the appeal of title insurance is that it provides no-fault protection and has no deductible. New property owners as well as those who have owned property for a long time are eligible to take out title insurance policy. If there is a claim resulting from real estate fraud, the insurer acts on the insured’s behalf and, according to the specifics of the file, assumes the cost of defending the title or indemnifies for actual loss, as applicable.
“Today, we have access to numerous products and services that make our lives easier and facilitate the many transactions we have to perform. However, we also encounter new concerns that in some cases can be very serious. Title insurance is one way to preserve property owners’ peace of mind in such situations,” concluded Mr. Nadeau.
About the Title Insurance Industry Association of Canada
TIIAC is a recently formed industrial association of title insurers. The Office of Superintendent of Financial Institutions (OSFI) regulates the insurance company members federally, and its provincial counterpart, Autorit� des march�s financiers (AMF), regulates their activities in Quebec. TIIAC’s objectives are:
- To promote the common interests and concerns of the title insurance industry in Canada.
- To provide information and education to its members and the public.
- To advocate for the betterment of and on behalf of the title insurance sector.
- To maintain professional standards and ethics in the title insurance industry in Canada.
TIIAC members have adopted the following principles of fair conduct:
- To engage in business practices that are lawful and consistent with a high standard of ethical behaviour.
- To encourage a culture of compliance within their organizations for federal and provincial laws that govern the title insurance business and for these principles.
- To treat consumers in a fair, ethical manner.
- To provide consumers with timely and comprehensive information regarding their policies, services, products and prices so as to enable them to shop effectively among providers of title-related services.
- To encourage and assist consumers to be educated purchasers of title insurance and title-related services.
SOURCE: Title Insurance Industry Association Of Canada
