Having been there (not proud of what I’m getting ready to say), but prison is no fun.  But, being ordered to pay $46 million in restitution – well…that’s a sentence that is impossible.

According to the US Attorney’s office, Lila Rizk, a former state-licensed real estate appraiser was sentenced to three years in federal prison and ordered to pay more than $46 million in restitution for her role in a massive mortgage fraud scheme that caused tens of millions of dollars in losses to federally insured banks.

Lila Rizk, 43, of Rancho Santa Margarita, received the three-year prison term after her conviction last summer on conspiracy, bank fraud and numerous loan fraud charges.

Rizk was sentenced by United States District Judge Dean D. Pregerson, who warned that other professional real estate appraisers should know that if they inflate appraisals and lie about the value of homes, “there is an overwhelming likelihood that they will be caught and go to prison.”

The evidence presented at Rizk’s trial last summer showed that she was part of a wide-ranging and sophisticated scheme that obtained inflated mortgage loans on homes in some of California’s most expensive neighborhoods, including Beverly Hills, Bel Air, Holmby Hills, Malibu, Carmel, Mill Valley, Pebble Beach and La Jolla. Members of the conspiracy sent false documentation, including bogus purchase contracts and appraisals, to the victim banks to deceive them into unwittingly funding mortgage loans that were hundreds of thousands of dollars more than the homes actually cost. Lehman Brothers Bank alone was deceived into funding more than 80 such inflated loans from 2000 into 2003, resulting in tens of millions of dollars in losses.

The evidence presented at trial showed that Rizk profited by collecting hundreds of thousands of dollars in fees for providing inflated appraisals in the scheme.

STOP – TAKE NOTE:  Crime doesn’t pay.  Rizk gained hundreds of thousands of dollars in fees – but now she’d ordered to pay $46 million in restitution.  OUCH!

Her appraisals typically valued the homes three times higher than what the homes really cost. In order to supposedly justify these inflated values, Rizk used “comps,” or comparable homes, that were far bigger, more luxurious, and in better neighborhoods than the homes she appraised. Once she had inflated a few dozen homes, she then used those homes as “comps” to supposedly justify inflated prices for homes later in the scheme.

Ten other real estate professionals have been convicted of federal charges related to the scheme. They are:

scheme leader Charles Elliott Fitzgerald, a developer formerly of Newbury Park and Beverly Hills, who previously was sentenced to 14 years in prison;

Mark Alan Abrams, of Los Angeles, a mortgage broker who along with Fitzgerald orchestrated the scheme, who is scheduled to be sentenced on April 12;

Nicole LaViolette, of Palm Springs, a loan processor, who is scheduled to be sentenced on June 14;

Jamieson Matykowski, of Laguna Niguel, who found houses for the scheme, is scheduled to be sentenced on March 29;

Timothy Holland, of Santa Ana, an escrow officer, who is scheduled to be sentenced on July 19;

Richard Maize, of Beverly Hills, a mortgage banker, who is scheduled to be sentenced on June 28;

Thomas R. Schiff, of Brentwood, a mortgage banker, who was previously sentenced to 6 months in prison;

L. Scott Robinson, of Dana Point, an appraiser, who is scheduled to be sentenced on April 2;

Kyle Grasso, formerly of Santa Monica, a real estate agent, who is scheduled to be sentenced on February 19; and

Joseph Babajian, of Los Angeles, a real estate agent, who is scheduled to be sentenced on February 22.

FINAL NOTE:  You have to know that those who are awaiting prison must be quaking in their boots…as the restitution factor precludes the practicality of any reasonable life following prison.

YOUR COMMENTS ARE WELCOME!

Got a call from a guy in Austin. He found one of my listings online – saw that I’ve been doing investments and exchanges for a while and called me to ask about his investment property.

He quickly summed up his situation in that he was $750/month negative and wanted to stop making payments on his income property.

“I already have a primary residence so I am set” He tells me.

So, I ask him a couple questions:

“Well was the cash flow negative when you bought it?”

“No, we only had the first.”

“Ok, so was it an adjustable?”.

“No, no. We had some equity in it then so we got a second and took cash out. But, now it’s about $50,000 underwater and it’ll probably be that way for a while.”

I am not sure why this really ticked me off but, it did.

“We’re getting tired of making that $750/mo payment if there is no equity in it”

But they weren’t too tired of the property when they took $50K out of it.  I am sure they had a lot of fun with $50,000 cash!

I told him that the bank would file a deficiency judgment against him for any balance owing. They could attach his house, his wages and anything else he does for the next ten years. Then, if they haven’t collected their monies, they could extend the judgement for another 10 years.

“But, I heard they aren’t doing that”

“Oh no, that was the old days. When this all first started the banks were overwhelmed and files slipped through the cracks. Now there are whole departments that do nothing but collect on defaulted mortgages.” It was about this time that my caller “lost the connection”.

I am sorry but, it is not the banks fault that you speculated with their money. Just like the folks that take cash advances to gamble in the stock market or at the roulette wheel, you borrow money to gamble and then lose it all – you still owe the money.

The foreclosure and judgement will be on your credit for 10 years. Every time you try to finance anything, the rate will be higher. If you sell your house, the bank gets their money. They can garnish 25% of your income. They can take your stuff. Whatever it takes to get back the money you promised to repay.

What really ticks me off is that my tax dollars, and my kids tax dollars and their kids tax dollars are bankrolling this nimrod’s gambling habit!

There is an estimated $1.3 trillion (yes trillion) in commercial real estate mortgages coming due by 2013 (that’s 3 years away). It is widely believed that up to 65% of those deals are under water and will have difficulty getting refinanced. This has Congress worried. So I’m sure they have a plan. Right?

The plan: Drop the problem in Treasury’s lap. A bi-partisan  group of Congressmen sent a letter to Treasury telling it to take a more active role in encouraging lending to commercial real estate borrowers. Cop out. This is a way for elected leaders to look like they are being proactive when they haven’t really done anything at all. And do we really need Treasury to get involved?

Most of these non recourse borrowers do not want to refinance. And what bank will refinance a property that doesn’t throw off enough income to meet the debt payments. There’s a huge readjustment in CRE values on the horizon. Reminds me of this great scene:

Facing a potential 125 years in prison, jurors deliberated for less than an hour convicting Retana of preying on Spanish-speaking investors with promises of hefty returns in the real estate bubble bilking more than 2,000 victims out of more than $62 million.

Retana began soliciting investors in 2006 through his company, Best Diamond Funding, by telling them that their money would be used to buy and sell real estate.  Best Diamond Funding solicited money through advertisements in Spanish-language magazines, on the Internet, and during weekly investment seminars at locations across Los Angeles. The investment seminars often had as many as 300 potential investors and incorporated religious messages. Retana guaranteed returns as high as 84 percent each year, claiming that he would purchase properties in bulk at below-market prices and immediately sell them for a profit. However, records obtained by federal investigators showed that Retana used only a tiny fraction of the victims’ money to purchase real estate and that his company was actually losing money.

During the trial, several victims testified that they mortgaged their homes and drained their retirement accounts because they believed Retana’s promises that their investments would be safe. The victims who testified at trial were largely from working-class families in East Los Angeles, and they included a stone mason, a long-haul truck driver, and a roofer who was also a pastor at his local church.

Retana’s scheme was almost uncovered in the summer of 2008, when the California Department of Real Estate audited his company. But Retana stymied that investigation by ordering his employees to hide all of the investor files at the back of his wife’s religious bookstore, La Libreria Del Exito Mundial. His scheme was disrupted in October 2008, when federal agents from the United States Postal Inspection Service and the Federal Bureau of Investigation executed search warrants on the offices of Best Diamond Funding and the bookstore. During those searches, agents found $800,000 in cash stashed in Retana’s desk, as well as another $3.2 million in cash hidden in the back of the bookstore. The FBI also seized another $8 million from Retana’s bank accounts.

Soon after the execution of the federal search warrants, agents interviewed Retana, who lied about how much money he had received from the investors and claimed that he could pay all of them back. Retana was later secretly recorded telling a Best Diamond employee not to tell the government how much money Best Diamond had received from the investors.

DO PONZI SCHEME FRAUDSTERS TARGET ONLY THE WHITE OR RICH?

No…not a chance.  The Ponzi scheme fraudster looks for an opportunity.  Anyone who is lured by an UNREALISTIC PROMISE – dazzled by an ELABORATE ILLUSION and sucked in by TRUST is a target.  Bernie Madoff evidenced that through his focus on primarily Jewish clients – not because of race or money, but because of trust.  When a person is lured by the PIT (Promise, Illusion and Trust) they are susceptible to a Ponzi scheme fraud.

If you were a victim of Milton Retana’s fraud – feel free to comment on how you became a victim.

YOUR COMMENTS ARE WELCOME.

Oh, and Milton Retana is to be sentenced on April 26, 2010.  What do you think his sentence should be…

College:

(All college briefs are taken from press releases from Rowan University.)

• Rowan University’s Edelman Planetarium will be presenting it’s new show, “Bad Astronomy: Myth and
  

  Rowan's Edelman Planetarium

  Misconceptions” on Saturday Jan.16. Shows will run every Saturday evening at 7 p.m. until March 6. To find out more, click here.

• Rowan University has appointed James Jordan, of Mantua Township, as director of its Master’s in Business Administration program in the Rohrer College of Business. To read more, click here.
• Mission Solutions Engineering (MSE), of Arlington, Va., and Moorestown, has awarded a $100,000 one-year contract to Rowan University to help the firm improve the capabilities of a software system called Advanced Display Infrastructure (ADI). To read more, click here.
• Bay Atlantic Symphony continues its performance series as ensemble-in-residence at Rowan University with Rediscovering America on Friday, January 29 at 8 pm in the university’s Tohill Theatre. A free pre-concert lecture begins at 7 p.m.. To read more, click here.

State:

• Sixty-one year-old Wayne Puff of Old Bridge was sentenced to 18 years in prison for real estate fraud. To find out
  

  NJ Online Checkbook

  more, read the Associated Press‘ article here.
  

• Governor-elect of New Jersey, Chris Christie has nominated Andrew Sidamon-Eristoff for treasurer. To find out more, read the Reuters‘ article here.
• New Jersey has launched a web site, NJ Online Checkbook, which allows the public to track state spending. To find out more, visit the official website.

National:

• Paul Schlesselman of West Helena, Arkansas pleaded guilty for his 2008 scheme to kill African-Americans,including then-Senator Barack Obama, and will face up to 10 years in prison. To find out more, read the Wall Street Journal’s article here.
• The Pentagon is contemplating repealing the “Dont Ask, Don’t Tell” to carry out one of President Obama’s campaign promises. To find out more, read the New York Times‘ article here.
  

  The "sexting" scare.

• Approximately 38 members of California’s Assembly and Senate are under investigation, by the California FairPolitical Practices Commission, for their failure to report thousands of dollars worth of accepted gifts from2008. To find out more, read the Associated Press‘ article here.
• A 12 year old girl may face charges for child-pornography for “sexting” a provocative image of herself via her camera phone. To find out more, read the Reuters‘ article here.

World:

• 

  Haiti earthquake

  • Haiti was hit by a severe earthquake with a magnitude of 7.0 on January 12. The International Red Cross estimates that the earthquake may have killed up to 50,000 people. To help out in the relief effort or find out more information, visit CNN’s web site here. (To avoid scams when donating to Haitian relief efforts, read the The Chicago Tribune article here.)
• Hamas leader Khaled Meshall has asked Egypt to stop constructing its underground wall along its border with Gaza and has warned Israel against further strikes on the Gaza Strip. To find out more about Egypt and the Hamas government in Gaza, read  the CBS news article here.

• Ukrainians will be voting to elect their new president on Sunday. Whoever may win can determine relations between Ukraine and Russia, some say. To find out more, read by The New York Times article here.

.

Note: All compiled briefs are a summary of current news events and not a summary of the specific article referred to for the reader.

Fortress Investment Group, LLC has sued the law firm Dechert, LLP for a legal opinion rendered by the firm about an investment that turned out to be part of a giant Ponzi scheme. Fortress alleges that before they invested in a fake note sold by Marc Dreier, principal of the 270 lawyer firm of the same name, Fortress retained Dechert to issue a legal opinion. Fortress now alleges that Dechert confirmed that the note/loan was legitimate. In fact the loan was a sham and Dreier misappropriated the proceeds from Fortress for his own use, the suit alleges.

This is yet another example of exploring every possible avenue available for recovery if you have been defrauded. If the allegations in this lawsuit are true, Dechert could end up paying for the fraudulent misdeeds of others. It will be interesting to see the proof behind these allegations. I will follow this case and keep you posted.

A link to the Wall Street Journal article is here.

Henry S. Miller Commercial has agreed to enter bankruptcy in response to an involuntary petition that had been filed by three creditors in July.

Here’s the story: Henry S. Miller was the broker for Jim Flaven- the beneficiary of a multi-million dollar trust fund. Flaven wanted to buy $100 million in Texas properties. So the Henry S. Miller broker went to work. The broker arranged for Flaven to buy a number of properties from BNC Properties. One problem (and it’s a big one): Jim Flaven is a con artist and never intended to follow through with the purchase. So, BNC sued Henry S. Miller and was awarded $8 million.

The whole sordid tale can be found in this article that was published in D Magazine.

From street widening to altering property lines; from relocating utility poles to creating ADA violations, how has Wilbert G. Swieso managed to override the Planning Dept. and have the entire city rebuilt on top of a secretly-replaced water system without the public’s knowledge? He is a former employee of the City of Fresno ~ he knows how the “system” works.

1. Recruit the City’s risk analysts and Public Works Dept. No one questions or oversees what they do.
2. “Plant” tenants / neighbors who will serve as “credible witnesses” that nothing took place. Eliminate others.
3. Use corrupt attorney(s) for fraudulent legal documents.
4. Use title companies to record fraud as well as illegal altering of parcel maps to line up to new property lines.
5. Alter aerial views to make it appear that recent alterations took place decades ago i.e., streets widened so much, blocks now smaller. Removal of various structures, expansion of others, etc.

Mr. Swieso says the public is not only oblivious to what is taking place right under their noses, they believe whatever they are told. Therefore, all he has to do is cover up the evidence and it goes no further.

Because there is no record for what is taking place, this allows for the majority of reconstruction to be done without permits or inspections. Virtually no enforcement of building regulations.

See for yourself! Although the City removed their earlier aerial views and now only show the current one, other web sites still show earlier/older views. You will see that older aerial views reflect recent street widening and new property lines! As though things were always this way. With no such record of such changes taking place, Mr. Swieso is right, no one questions anything.

For families undergoing health problems and/or ongoing home repairs, mold, sick-building syndrome, do yourselves a favor. Simply dig 8″-12″ and take a look at your clamped sewer and water lines. Notice they go beneath the entire structure, which required major reconstruction. Now go to City Hall and see if you can find the permits or inspections. 2600 Fresno St., 3rd floor. Nothing on record? This is when my page will begin to make more sense to you. Click: Marla

This is also when you will begin to understand why there is no help. There is no record for what has taken place. With the City of Fresno’s office personnel looking at ALTERED RECORDS, that is what they stand behind. Exactly as they are programmed to do, which is why Mr. Swieso refers to them as his “puppets.”

Same with PG&E. There are many more utility poles throughout the city in addition to the original ones being replaced, relocated and reconnected. You can see the shoddy workmanship and code violations everywhere. Yet once again, PG&E’s office personnel are looking at altered records, which is why they insist that their poles have always been as they are today.

Fresno Flood Control insists that storm drains and rain gutters have not been altered or relocated in decades. Yet the streets were widened; ADA violations have continued to escalate as a result of this, so how can they deny these alterations? More altered records! There is no record of the streets being widened, remember? So there CANNOT be any record for the altered / relocated storm drains, rain gutters, etc.

Keep in mind that prior to the unauthorized alterations there was strict enforcement of compliance issues and guidelines; these citywide code violations did not exist. Therefore, if there is no record of the alterations taking place, who is going to help with code violations associated to alterations there are no records for? No one. That includes the accompanying crimes in order to “clear the path” so it can continue ~ there are no repercussions. Example: After the suspected homicides of my family and neighbors to pull this off on our properties, the risk analysts went as far as to commit perjury, followed by death threats and sexual harassment against me. They would not even allow the truth behind the unsolved murder across the street (100′ to the west.)

Notice how Mr. Swieso has the City of Fresno covering up and protecting him every step of the way. Here is where Mr. Swieso proves that he is light-years ahead of the City of Fresno. He recruits them just enough …… then behind their backs, he takes things further. That is why he is laughing at them. This is just one example of his technique: Swieso’s Adopt-A-Highway

Another example is how he swings his bible ~ wanting everyone to know that he does “volunteer work” at his church, United Grace Methodist Church. More of his infamous “repairs.” In reality, not only has he rebuilt that church section at a time on top of his secretly replaced water system, he is using it as another headquarters to store his tools, scaffolding, equipment while turning the neighborhood properties over. Residents in the area are very familiar with this man ~ seen altering various homes, running people off their property, using illegally altered parcel maps as “proof” that the neighboring property is overlapping which will result in the owner being sued if they do not rectify the problem at THEIR expense. More altered / reconnected utility poles. Followed by more altered records; more altered aerial views to make it appear that nothing changed.

Why is this not being looked into? THERE IS NO RECORD OF IT TAKING PLACE.

If there is no record for any of this, who is paying for it? It appears to be funded from the forged and fraudulent insurance papers, legal documents and real estate fraud that follow Mr. Swieso etal. With his ultimate goal of having the water secretly diverted to the area where he planned to build his “dream home”, his motto: “You can’t live for the dead.” Xxxxxxxxx Insurance is aware of his actions; they conspired with him in what was done to my family and neighbors in order to pull this off on our properties. Same attorney who conspired in fraudulent legal documents was referred to other clients; same with various home health personnel. A cycle that follows the very people we are led to believe we can trust and believe in.

So bravo to Wilbert G. Swieso for the atrocities he has gotten by with over the past 50 yrs. Comparing himself to “Hitler”, the evidence verifies that he took total control long ago.

Like everyone else, the City of Fresno believes whatever they are told. Going to them for help only results in more hell (and laughter by Swieso and his mob.) The municipal fraud / corruption is bad enough ~ the accompanying suspected homicides, unsolved murders, rape, burglaries in order to “clear the path” in order to alter the water system takes it over the line. That is why outside help is needed.

With Christmas on the way, keep in mind that Whistleblower agencies pay BIG rewards for reports of municipal corruption. This will be the Story of the Century ~ according to Mr. Swieso, it ties into the central valley’s created “water shortage.”

Rewards are also paid for reports of water violations / terrorism: Click: Can be fined $25,000 per day/per violation

Residents blaming Smart Meters for unexplained increases in their utilities should look at this Click: PG&E is not behind this

For help with discrimination against the disabled CLICK HERE: ADA Enforcement

The City of Fresno’s Dept. of Public Works is conspiring with former employee, Wilbert G. Swieso, in secret replacement of the city water system. Private properties are being rebuilt on top of this new water system without permits or inspections. Various structures are removed while others are expanded. Streets widened; alleys narrowed.

As these properties are resold, parcel maps are illegally altered in escrow to line up to the new property lines. These altered parcel maps are then presented to the neighbor as “proof” that their property is overlapping by several feet and unless the problem is rectified immediately, at their expense, they will be sued. Aerial views are then altered to further make it appear that nothing changed. With all the evidence covered up in order to make it appear that things were always this way, Public Works denies all knowledge or responsibility.

As you can see, by the time the process is over, all property lines have been changed. All structures now setting on top of clamped sewer and water lines. Major building, health, safety and environmental code violations being covered up by THE CITY OF FRESNO!

They were finally caught in action, which resulted in perjury, death threats and sexual harassment against me. This is behind secret water diversion.

To learn more CLICK: Marla

Another victim has come forward.

RECAP: Structures throughout Fresno are being rebuilt on top of the secretly replaced water system.

Removal of various structures; expansion of others. Streets widened. Every property line altered.

No record for any of this. Reconstruction without permits or inspections. Property resold; parcel maps illegally altered in escrow, as though things were always as they are now.

The new parcel map is then presented to the neighbor/s who are threatened with lawsuits by this mob, over the CITY OF FRESNO’S property lines!

And the altering of more property lines continues – absolutely no record that anything ever took place.

Block by block, over the last 50 yrs, every property rebuilt with new property lines.

Ringleader behind this is former employee of the City of Fresno, Wilbert Swieso. He said this is behind the valley’s water shortage – secret water diversion, further laughing that the public, including farmers without water, will never figure this out.

See my page for more: CLICK: Marla Or CLICK: Behind Mayor Autry’s So-Called, “Infrastructure Upgrade

In the meantime, please let me know if you or anyone else have been victimized by this group.

In a very general sense, real estate fraud occurs when a party makes claims of fact about the property or terms of the transaction which are false. However fraud can also occur when a party fails to disclose relevant information about a property or the terms of a transaction. The party defrauded has to allege and prove that they would not have entered into the transaction but for the fraud and that they suffered damages as a result of the raud. In fact Texas has a statute which specifically addresses Real Estate Fraud.

Chapter 27 of the Texas Business & Commerce Code reads as follows:

BUSINESS & COMMERCE CODE

CHAPTER 27. FRAUD

§ 27.01. FRAUD IN REAL ESTATE AND STOCK

TRANSACTIONS.  (a) Fraud in a transaction involving real estate or

stock in a corporation or joint stock company consists of a

(1)  false representation of a past or existing

material fact, when the false representation is

(A)  made to a person for the purpose of inducing

that person to enter into a contract;  and

(B)  relied on by that person in entering into

that contract;  or

(2)  false promise to do an act, when the false promise

is

(A)  material;

(B)  made with the intention of not fulfilling it;

(C)  made to a person for the purpose of inducing

that person to enter into a contract;  and

(D)  relied on by that person in entering into

that contract.

(b)  A person who makes a false representation or false

promise commits the fraud described in Subsection (a) of this

section and is liable to the person defrauded for actual damages.

(c)  A person who makes a false representation or false

promise with actual awareness of the falsity thereof commits the

fraud described in Subsection (a) of this section and is liable to

the person defrauded for exemplary damages.  Actual awareness may

be inferred where objective manifestations indicate that a person

acted with actual awareness.

(d)  A person who (1) has actual awareness of the falsity of a

representation or promise made by another person and (2) fails to

disclose the falsity of the representation or promise to the person

defrauded, and (3) benefits from the false representation or

promise commits the fraud described in Subsection (a) of this

section and is liable to the person defrauded for exemplary

damages.  Actual awareness may be inferred where objective

manifestations indicate that a person acted with actual awareness.

(e)  Any person who violates the provisions of this section

shall be liable to the person defrauded for reasonable and

necessary attorney’s fees, expert witness fees, costs for copies of

depositions, and costs of court.

This week I spoke to my friend who was telling me a story about his friend and how he got taken for $12,000…. Two couples bought the same foreclosure and were handed the same set of keys to a home that was in foreclosure. One couple lost $12,000 and the other $25,000. That’s $35,000 off one home.

RULE #1, just because the home is vacant does not mean the home has been completely foreclosed on.  Don’t trust anyone….This post is to EDUCATE consumers on how to know if you are dealing with professionals or scam artist. Here are some steps to help you so you don’t get taken.

1. Check the validity of the so called Realtor, you want to double check that information first before moving forward. In California you can check the status of a real estate agents license at this site.

2. Next, you will want to check the status of the home to determine who owns the home. That information is public record, you can Google the Assessors Office of your particular county. If you have trouble post a comment and I will help you.

3. When the offer is accepted or so called offer is accepted an Escrow needs to be opened, be very careful if the realtor tells you that THEY WILL HANDLE EVERYTHING! Normally, the bank will have an escrow company that they have an agreement with. Call and speak to the Escrow Officer personally, visit the escrow company and cross reference the escrow office by searching on Google. Also check with the BBB.org, NEVER give anyone cash or write a check to anyone personally…An escrow company SHOULD NEVER have you write a check to anyone other than the Escrow company. Same goes for the lender or real estate office.

4. When it comes to ordering your inspection, you order it yourself personally, you do the search for a ligitamate inspector.

5.  For the financing or the mortgage loan, again Google the mortgage company, visit the office, be very alert if the realtor, loan company and escrow are all in the same building. I know it sounds elementary but people are getting scammed.

People, be very alert, do your home work, if it sounds to good to be true then it is. If it sounds like too much work rememeber your savings is at stake. These con artist are putting up shop and taking peoples savings. Call a local realtor like my preferred realtor Connor and Paris Macivor with www.paris911.com they can help you do the leg work.  Call a reputable real estate office and have someone double check the work. I know it sucks but there are scum out there….Again DON’T TRUST ANYONE, verify everything don’t leave it to chance. I was so sick that I had to write this post. God Bless.

16 Reasons to Buy Title Insurance

By Brian Madigan LL.B.

I thought that I would give you 16 good reasons to buy title insurance. Actually, there are more than sixteen, but if these sixteen are not enough, then you’re just not going to be convinced.

Until 1997, the common practice in Ontario was to secure an opinion on title from a solicitor. If something went wrong, then you simply sued the lawyer. Now, that’s easier said than done! Title insurance has now come to the rescue. Certain identified risks are covered under a policy of insurance. The coverage is much broader than the matters set out in an opinion letter from a solicitor.

Here are some of the reasons why “insurance” may be better than an “opinion”:

1) it covers matters not included in a title opinion,
2) you don’t have to sue your lawyer if something goes wrong,
3) it provides funds to solve the problem,
4) the insurer provides creative solutions to rectify the issues,
5) it pays your legal fees,
6) it provides compensation to you, if your problem cannot be resolved,
7) it covers the claim and legal fees if someone sues you,
it’s inexpensive, and there is a one-time premium,
9) you may save on the usual disbursements in a transaction because some searches are not completed,
10) you may save the cost of a new survey in most cases,
11) it protects you against survey errors, in both old an new surveys
12) it protects against errors in information provided by municipalities and utilities,
13) you may negotiate to obtain additional coverage for other issues including environmental hazards, native land claims and risks you have assumed by contract,
14) it protects you against certain construction liens,
15) it protects you against fraud and forgery,
16) it continues to provide coverage for problems arising after the closing date,
17) it protects your mortgagee so that the deal will be closed and the mortgage funds advanced,

OK, I gave you seventeen, if you still need a few more, contact me and I’ll send them to you……

And, I’m sure you really didn’t want to sue your lawyer!

Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty, Brokerage 905-796-8888, www.OntarioRealEstateSource.com

CLICK: Marla