Title Fraud
A mortgage-free British Columbia property which had been registered to the same owner for 23 years was fraudulently transferred to a new owner. The fraudster later registered a mortgage for $400,000 against the property. Stewart Title insured the unknowing lender as having a first priority mortgage against the property. When the mortgage later went into default, the original owner claimed he had no knowledge of and not consented to either the mortgage or the property transfer.
Title Fraud
A vacant parcel of a mortgage-free British Columbia property was transferred to a new owner and then encumbered with a large mortgage a few weeks later. This mortgage later went into default, resulting in enforcement proceedings. Upon discovery of the enforcement proceedings, the previous registered owner of the property claimed that they had not consented to the transfer of land and challenged the proceedings.
Mortgage Fraud
A private lender was insured on a mortgage issued with respect to the enforceability of a second ranking charge on one property and a third ranking charge on a second property. Both mortgages later went into default, and the prior registered owners of these two properties commenced legal action. They alleged that the properties were fraudulently transferred to the borrower in a fraud scheme perpetrated by the borrower.
Title Fraud
Stewart Title insured the enforceability of a first mortgage against title to a residential derelict Alberta property. The mortgage funds were advanced to the new owner for the purpose of purchasing the abandoned property to renovate it and rent to tenants. The previous owner later made a claim that he was impersonated while in prison and had never transferred the property.
Empty Homes Tax
During the purchase of their home the Buyer was advised by the Seller that the property was exempt from the City’s Empty Homes Tax. However, shortly after closing, they received a letter from the City stating that the exemption was invalid. As a result, the City retroactively assessed the vacancy tax of approximately $50,000. The title insurance company paid the city the full amount of the levied taxes. Note this was not out client…..we never would have missed the Empty Homes Tax LOL.
No Renovation Permits
After purchasing their home, the insured applied for permits intending to carry out renovations. During the application process, the City informed them that the existing second level rear porch, retaining wall and walk-out basement had been constructed without the required building permits. The City determined that it would not issue permits for these structures and was forcing their removal. The title insurance company assessed the actual loss, being the difference between the value of the land with the second level rear porch, retaining wall and walk out basement versus its value assuming the structures did not exist, and paid the difference.
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