Well, they don’t cart your home away instead title thieves effectively take control by registering a false sale and taking out a large mortgage against the property. Such fraudulent transactions happen without the homeowner even knowing it. Title thieves like to target properties that are mortgage free.

That was the case with a Richmond pensioner. A few years ago someone impersonating him registered the sale of his property with the land title office and took a $400,000 mortgage out against the previously mortgage-free home.

He didn’t even learn of the transaction until his annual property assessment failed to arrive and he called up the BC Assessment Authority. He was told he didn’t own the property anymore, news to him but not to the land titles office that had documents showing he had sold the home, which was saddled with a $400,000 mortgage. Of course the title thief got the money, the mortgage went into default and the victim, his lawyer, the bank holding the mortgage, and the land title office were left to sort out the mess.

There have been similar incidents in other provinces. A few years ago Ontario saw a number of high profile cases that prompted an increase in the demand for title insurance, including one case in which a Toronto couple found themselves facing a $247,860 mortgage after identity thieves fraudulently transferred title of their condo, which was mortgage free, and borrowed against it.

Do you need Title Insurance?

Each province has its own land title registries so it is best to talk to your lawyer or notary about the assurance fund related to your province’s registry system. Your lawyer or notary can also advise you on title insurance, an option some homeowners are taking just for peace of mind.

There’s no one-size-fits-all solution so the best option for your cousin in Toronto may not necessarily be the same for you living in Vancouver.

The premium for title insurance is a one-time payment and while it varies depending on the company and the value of your property, typical costs are estimated at around $250 with higher premiums for properties valued over $500,000.

RBC Royal Bank points out title insurance covers a number of risks including:

• Fraud and forgery
• Encroachments that would be disclosed by a new survey; for example a neighbor’s deck encroaching on your property
• Easements that would be disclosed by a new survey
• Zoning non-compliance
• Someone other than the owner having an interest in the property – for example the previous owner not being discharged from the title.

If you are in Ontario, check out the Financial Services Commission of Ontario guide,

Understanding Title Insurance. For British Columbians, it is worth noting a 2007 task force of the Law Society of BC on title insurance pointed out that BC doesn’t share the same system as the U.S., where title insurance found a market. The task force concluded that in BC’s Torrens system of land title registration, title insurance isn’t “a positive force.”

Over the past 20 years BC’s Land Title and Survey Authority (LTSA) processed close to 16 million transactions. Of that, there were three claims on its Assurance Fund relating to land ownership fraud and 14 fraud claims relating to lesser interests in land such as discharges of mortgages.

In 2009, the BC Court of Appeal held that unless a mortgage is granted by the true owner of the property that mortgage is invalid and the owner gets the title returned to its original state. You can check out the LTSA’s recommendations, which include options other than mortgage insurance.

So while the headlines may be scary, the instances of title fraud are low. Just be informed and check out your options.

In Vancouver some homes are now selling for $100,000 and more over asking price as eager buyers wage bidding wars for the most sought-after properties. Across the border in Seattle some 34 per cent of homes are worth less than the mortgages still owed on them.  And in Ottawa, the government has introduced tightened mortgage rules, a move that is expected to squeeze some first-time home buyers out of the market and push down prices.

It all adds up to a dilemma for people who are trying to make the decision: Rent or buy?

As money coaches, it’s a question we hear a lot.  Mortgage rates are at historic lows and that has convinced a lot of people that buying is the best option. But, that aside, the debate over rent versus buying isn’t clear cut.

Let’s look at both sides.

Five reasons why buying a home may make sense:

1. Interest rates are forecast to rise but they are still at historic lows and it could be a good time to lock those rates in.
2. Real estate is an asset that could appreciate considerably over time. A Vancouver home that was worth $296,000 in 2000 was worth $676,000 in 2010, in a decade that saw a compounded annual return of 7.8%, outpacing the major Toronto stock exchange index.  Across Canada, the national average was 6.82%, according to the latest RE/MAX Housing Barometer Report.
3. Pay yourself instead of a landlord:  Paying your mortgage will increase your equity, in effect an enforced savings plan.
4. You have security of possession, no fears of being forced to move at the whim of a landlord.
5. Home ownership is an important personal goal for you and your family.

Five reasons why renting may make more sense for you:

1. You give up flexibility when you buy, particularly in areas where homes are not quick to sell. What happens if your dream job comes up across the country and you can’t find a buyer for your house? Or you lose your job, or your income drops — it could be quicker and easier to seek cheaper rental accommodation than trying to unload a home.
2. When you rent, your costs are fairly predictable – you don’t have to worry about paying for hot water tanks that fail or sudden assessments from your strata for unforeseen expenses.
3. It’s not just mortgage payments that take a chunk out of your budget; there are ongoing maintenance, strata fees and property taxes. Not to mention, real estate, legal fees and other costs to consider in buying and selling.
4. While you hope your home will increase in value, you can’t always count on it and a forced early sale could end up seeing it go for less than you paid for it. Before you buy, consider: Are you planning to stay in your home for the long run? Is your job secure? How important is home ownership to you?
5. You may be able to squeeze into the market with the current low rates but only just.  Interest rate hikes could cost you your home. Almost 20 per cent of Canadians don’t know if they’d be able to make their mortgage payments if interest rates go up according a recent poll released by the Bank of Montreal.

There’s no right answer; only a right answer for you.

A simple financial plan and a realistic look at your cash flow can help you decide the best strategy for you and your family.

To get a good handle on your money, check out the Smart Money Essentials program.