How To Protect Yourself From Real Estate Fraudsters
From City News
It’s one of the biggest investments you’ll ever make and a GTA couple is going door-to-door in their Mississauga neighbourhood to ensure it doesn’t fall into the wrong hands.
Muriel Chudiak and her husband Bill have launched a grassroots campaign to stomp out mortgage fraud, knocking on doors to talk to seniors, who are often victims of the crime, and to collect signatures on a petition urging politicians to stiffen the laws.
The 65-year-old activist is not a victim of mortgage fraud, but after reading a number of news stories on the subject, became very concerned for seniors and other home owners in her neighbourhood.
“We’ve worked long and hard for our houses and we shouldn’t have to worry about losing them,” Muriel Chudiak said.
Chudiak delivered her petition containing over 300 signatures to Queen’s Park Thursday. Politicians have taken notice of this growing problem and there are currently two competing mortgage fraud bills that have passed second reading in the Ontario Legislature.
Here are some ways to protect your most important investment:
* Consult public real estate websites to review property listings in the community where the property is located. Compare features, size and locations to establish if the asking price seems reasonable.
* Check to make sure your representative is a licensed real estate agent.
* Beware of a real estate agent or mortgage broker who has a financial interest in the transaction.
* Ask for a copy of the land title or go to a registry office and ask them to do a historical title search.
* In the offer to purchase, include the option to have the property appraised by a designated or accredited member of the Appraisal Institute of Canada.
* Insist on a home inspection to guard against buying a home that has been cosmetically renovated or formerly used as a grow house operation. Grow operators frequently use mortgage fraud to purchase their properties.
* Ask to see receipts for recent renovations.
* When you make a deposit, ensure your money is protected by being held “in trust”.
Here are some mortgage fraud red flags:
* Someone offers you a fee to use your name and credit information to obtain a mortgage.
* You are encouraged to include false information on a loan application
* You are asked to leave signature lines or other important areas on a loan application blank
* The seller or investment advisor discourages you from seeing or inspecting the property you are offering to purchase
Title fraud has become a growing problem in the Toronto real estate market, and until recently, there weren’t many tools available to consumers to prevent it. But consumers can protect themselves by purchasing title insurance. Here’s a list of information on this protection, courtesy of First Canadian Title.
The most common cases includes instances that include:
* Someone refinances your property by forging your signature and using fake identification, running away with the funds and leaving you to pay the costs of defending your title.
* Someone transfers title out of your name and then mortgages the property without your knowledge, leaving you with the responsibility of having to repay the mortgage and reclaim your ownership.
Title fraud can result in the following repercussions for a homeowner:
* The cost of defending one’s right of ownership, which can cost tens of thousands of dollars;
* The stress and uncertainty surrounding the a resolution of title-related problems;
* The time spent waiting for resolution from the Land Titles Assurance Fund; and
* The loss associated with a fraudulent mortgage that is entitled to remain registered against the true home owner’s interest.
For more information on title insurance, contact First Canadian Title at http://www.firstcanadiantitle.com or 1-800-307-0370.
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Contact the Jeffrey Team for more information
