Home selling scam has been in the news recently. Some homeowners were away for work or vacation for an extended period. When they came back, they were shocked to find that their house had been sold without their knowledge. That is very nerve-racking indeed. I can’t imagine what they were going through.
Fortunately, there is a way to protect homeowners. Check out this video by BNN Bloomberg. The key is title insurance. I guessed that almost all homeowner bought it as part of transaction to buy their home. I bet that most people didn’t read it carefully. I am the guilty one. I didn’t read it.
Good news is that it is never too late. Right after I watched the video mentioned above, I dug out the insurance document and read it. Now, I loved it. 😊 It is so detailed and comprehensive. I feel protected. The insurance policy is offered by Title Plus. Here are some verbiages I want to highlight.
The policy insurance you if you suffer an actual loss because of any of the risks listed below, ….
(8 ) The forgery of a document after the policy date as the result of which someone other than you claims to own or have an interest in your LAND;
The policy date is the date when the transaction completed. I think that was the date when we got the key to the place we bought.
This insurance premium was only one time we paid to the lawyer who handled the whole transaction. I was a bit worried how long the coverage lasts. After I read the above. I am a bit relieved. It also covers the legal service too. Here is the verbiage.
Defence coverage: We will defend and pay the costs, legal fees and expenses incurred in any legal proceeding, or in that part of a legal proceeding, which is brought by a third party against you because of a risk covered under this policy.
It even covers inflation. Wow! Here is the verbiage in the policy.
Inflation coverage: The policy amount will increase to reflect any increase in the fair market value of the LAND as of the date you make your claim under this policy up to a maximum of two times the original policy amount stated in schedule “A”.
I don’t know who wrote this policy. Genius! I was wondering whether I need to buy more insurance coverage since the market value of the property appreciates naturally. That is already covered. Yeah!
In supplementary coverage, below is exactly I was looking for.
An impersonation of you or other fraudulent act after the policy date as the result of which someone other than you claims to own or have an interest in your LAND.
I’ve never been so excited and pleased to read an insurance policy in my life. I am relieved but wait. I will read it from the beginning to the end once more just to make sure.
I highly recommend checking the title insurance you already have. However, it can still take more than a year to get this corrected if such fraud did happen to us. Make sure to protect your identity. Be very careful when you rent your place out.