Originally Posted by outmywindow
Just to clarify, “title insurance” came about through Identity theft.
Unscrupulous people find clear title properties, assume that persons identity and register mortgages against the subject property without the knowledge of the true owner.
There was a recent case in Ontario where the Bank demanded payment on the fraudulently registered mortgage from the true property owner, but the Court struck it down and the Bank took the loss.
(I hope I’m not giving anybody ideas).
There have also been instances of title transfers being registered fraudulently in at least two jurisdictions that I'm aware of. Anyway, it's not a problem here on the scale that it is in some other countries.