MONTREAL, March 15, 2013 /CNW Telbec/ - 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
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 TIIAC (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,
Autorité des marchés 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
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 (TIIAC)
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