Brian's Law

The King surveyed his castle with pride.  He was at his new Weber Barbeque, tongs in one hand and a beer in the other, a somewhat rude but funny apron around his ample waist, looking at the raw meat cooking over an open flame.  Sunday in suburbia.  The smell of barbeque was in the air.  The Queen was by the pool reading the latest mystery novel.  The little Princess, who was 6, and Prince, who was 4, were fighting as usual but he knew it wouldn’t last.  They would be back to playing together shortly if he didn’t get involved.  The Princess always won the battles but the Prince never missed an opportunity to start another one.  One of these days, he would be able to outrun her but, until then, he paid a dear price for his teasing.

The oldest Prince, who was now 22 years old, was in the house reading the paper to find out yesterdays late football scores.  He knew he liked to gamble a little too much but knew a big win was just around the corner.  The telephone calls he was getting from a man he owed money to personally were getting more and more threatening because he was behind on his weekly payments.  He had an idea.  The King and Queen had paid off the mortgage on the castle a long time ago. The Prince knew someone who could prepare a Power of Attorney that would allow him to put a mortgage on the castle and have all his debts paid off.  So long as he made the payments, no one would even know about it.  The Prince did the unthinkable.  He “stole” the King and Queen’s castle and mortgaged it to the hilt.

He hid his dastardly scheme and all was well until the Prince couldn’t pay the mortgage.  The mortgage company came calling and demanded the castle be sold so they could recover their money.  The Prince is going to jail for his deeds but the King and Queen have a huge, costly, and time consuming fight on their hands to try to hold on to their castle.

This story has been adapted from a report that was in the newspaper recently. If the King and Queen had Title Insurance, the insurer would have resolved the problem. Title and mortgage fraud are real threats to the security people think they have in their homes. Sometimes, someone you know does the fraud, but more often than not, a stranger perpetrates it. The provincial government is taking steps to help homeowners but the proposed legislation is a long way from passing and doesn’t provide true protection.  We insure our lives, our cars, and our homes against fire and now, sadly, we have to insure against title or mortgage fraud.  If you bought your home more than 5 years ago, you likely don’t have title insurance. It must be purchased through a real estate lawyer and the cost is surprisingly modest for a single-premium policy that lasts as long as you own your home.  Look at your reporting letter you received when you bought your house.  If it does not refer to Title Insurance, contact a Real Estate Lawyer now to obtain coverage.

Brian McMurter is a lifelong Durham resident practicing real estate law in Whitby.  His website is www.mcmurter.com