With all of the news around title fraud, it is not hard to imagine a fraudster entering into a mortgage loan agreement in a corporation’s name and disappearing with the funds. The corporation and their legitimate management are left to challenge the validity and enforceability of the mortgage and sue the lender and all involved for damages and to ask that the mortgage be declared invalid and unenforceable.
Instances of title fraud involve complex fact-specific arguments that potentially take years, and considerable cost to resolve. Fortunately, in a similar case, the lender had a commercial title insurance policy with FCT, which not only provided an indemnification to the lender for loss or damage suffered but also a duty to defend the lender’s interests.
The benefits of title insurance
Title fraud is a real threat in Canada’s real estate industry and is a potential risk for every property. In addition to the many benefits Commercial title insurance offers, commercial title insurance also provides a resource to look to if you are the victim of fraud. FCT has over 30 years of experience and a proven track record of detecting suspected fraud. FCT brings Certified Fraud Examiners (CFE) to the table who work to prevent fraud.
FCT also acts as a second set of eyes on your commercial transactions. As fraudsters become more innovative, having an extra layer of due diligence can help foil an attempt to sell or mortgage properties before they happen. As always, we actively underwrite title issues discovered during the due diligence assessment and offer solutions to ensure the deal can close smoothly and on time.
With the help of FCT, choose peace of mind. Protect your investment and ask your lawyer for a commercial title insurance policy from FCT. Learn more about the advantages of commercial title insurance at FCT.ca.
The FCT group of companies, based out of Oakville, Ontario, is a leading provider of real estate technology in Canada, delivering data-driven solutions spanning residential and commercial title insurance, default and recovery, and mortgage processing and valuation services. FCT serves approximately 450 lenders, 43,000 legal professionals and 5,000 recovery professionals, as well as mortgage brokers, real estate agents and builders, nationwide. FCT is a subsidiary of First American Financial Corporation (NYSE: FAF), one of the largest title insurers in the United States with a global presence.
FCT is proud to be certified as a Great Place to Work by The Great Place to Work® Institute and has been named as one of Canada’s Top 50 Best Workplaces for nine consecutive years (2015-2023).