12.09.05

I Wasn’t Expecting the Spanish Inquisition

Posted in General at 6:59 pm by: J. Gardner Hodder

Here are some very simple facts and a decision that should make everyone run right out and buy title insurance.

Husband and wife own a home in joint title.

Husband is away.

Wife forges a power of attorney and mortgages home to pay gambling debts.

So, who loses, the husband or the mortgage company?

Based on a section of the Land Titles Act, the husband loses, despite his total innocence.

So think about it. While you are reading this, some plausible hoodlum is forging your signature to a power of attorney, and tomorrow he will receive mortgage proceeds from a brand new mortgage on your home.

Before you get too excited about attacking the mortgage, read Household Realty Corp. Ltd. v. Liu, a decision of the Court of Appeal released November 24, 2005.

And then pack your bags.

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