Purchasing your first home is a big deal. After all, buying property is one of the most significant investments you’ll make in your lifetime. Although you wouldn’t think it’s something you have to prove, showing that you own your home is sometimes necessary. However, there are certain circumstances where you will have to prove ownership, and this isn’t always straightforward.
Something as simple as a credit card statement can show your primary address. Utility bills can do the same thing, but they prove that you own your home. You will need additional documents to show that you live and own your house. This can be difficult if you aren’t sure what you need to present to the person or organization asking for it.
Despite this, there are many ways to prove ownership. With that said, you might wonder how you do this. That’s why BrokerLink is here to help. We have prepared a guide that will supply you with all the resources you need to prove you own your house — purchasing a home for the first time? Review our intro to mortgages blog to learn more.
Verifying property ownership
When asked, you must prove that your property belongs to you. This can be intimidating, especially if it’s for an important reason, like making an insurance claim after a natural disaster to receive compensation. As a property owner, you must gather the proper documents to provide proof. Let’s discuss the ways to prove you own your home:
Property deed
Store a copy of the property deed somewhere safe. The most straightforward way to show you that you own your home is to show your property deed. These important documents have the owner’s name on them. However, it’s important to know that it only shows that you’ve owned your property for a certain amount of time, and you may be asked for additional proof.
Affidavit of ownership
This is a legal document that you have to sign with a notary public as a witness. Basically, when you sign this legal document, you are proving ownership because you are at fault for perjury if you sign it when you don’t own a home. This is a valid proof of ownership if a land title isn’t enough.
Title (mobile home)
Although it may seem like a technicality, a mobile home is considered personal property instead of a piece of property. However, you can own it like you would with a traditional house. That’s why if you live in a mobile, you can provide the title as an alternative to the property deed.
Mortgage payment records
A mortgage is a loan you take out to pay off your house. Mortgage payment records are helpful in proving ownership in the sense that someone wouldn’t be paying a mortgage on a property they don’t own. Additionally, the bank or lender would not provide a loan if you don’t own the property.
Mortgage satisfaction
When you purchase a home and take out a loan, you have to pay off your mortgage within an agreed-upon period. This can range from five to 30 years, depending on a number of factors. Once you complete all of your mortgage payments, the lender will send you a letter that shows you own the property, and no more mortgage payments are required.
Property tax receipts
Paying property taxes isn’t always a clear indicator of home ownership. However, when combined with other home ownership documents, they can help. Property tax payments that are consistent over a number of years can demonstrate property ownership. That’s why it’s important to pay your property taxes on time.
Identification documents
Another way to prove occupancy is with identification documents (e.g.driver’s licence, passport, etc). When you move into a new home, the government requires you to change your address. It doesn’t show that you own the home, but it does prove you live there. Consider these supporting documents rather than primary proof of property ownership.
Proof of a homeowner’s insurance policy
Homeowner’s insurance is a type of home insurance available for those who own a piece of property. Policies are separate for renters. If you reach out to your insurance company, you can receive records of payments. This can be difficult to challenge because insurance records show you pay for a policy rather than the previous owner. Use our guide to avoid making mistakes when buying home insurance.
Utility bills with your name on it
If you have water or electric bills addressed to you, it can often prove property ownership as long as you have the proper paperwork to accompany them. Another way to show these relevant records are authentic is by showing a direct connection to the company issuing such bills. Reach out to your utility company if you don’t have paper copies of bills.
Mail
When you live in a house, you receive official letters. These are labelled with your name and the address of your primary residence. If companies and offices, such as those affiliated with the provincial government have sent you official mail, it helps with proving ownership. However, you should remember that this isn’t a way to prove ownership on its own.
Most of the information you need is on public record, which means it’s easy to access as long as you go through the proper channels to find it. Proof of ownership isn’t all black and white, though, since a single document isn’t always enough to show you own rather than rent.
This begs the question, “When do I need to prove that I own my house?” We will discuss scenarios where you need to prove you own your home in the next section.
When do you need to prove ownership?
When do you have to prove ownership? Gathering a legal document or two can be a tedious process, but you’re probably wondering when you have to prove you own your house. After all, you know that you own your property,and that should be good enough, right? Well, there are a few scenarios where you may be asked to show legal ownership. With that said, let’s explore some of the reasons you may be asked to show you own your house below:
Purchasing an insurance policy
Before you can get home insurance, you need to provide your insurance company with proof of ownership. This is because buying and renting are not the same and require different policies. Insurance should always be on your list of new home considerations. A valid insurance policy should never be considered a last resort when it can protect you from paying for damages out of pocket.
Refinancing your mortgage
Refinancing your mortgage in Canada can get you a lower interest rate, get more equity from your property and assist with reducing debt. If you intend to refinance your mortgage, you need to provide legal forms that prove you own your house. These can often be found at a recorder’s office. The property deed and other documents are required to obtain a new mortgage.
Selling your property
If you have made the decision to move, you’ll have to sell your home. However, in order to do this, you have to show that you own the house you’re selling before you can transfer ownership. You will have to gather many legal documents, including purchase documents and proof that you pay property taxes. Once the sale goes through, you will need a lawyer to help complete the process.
Everyone is well within their legal rights to own a piece of property as long they can afford it. However, proving ownership can be tedious if you aren’t sure how to do so. Luckily, by following our tips, you can provide proof of ownership whether you live in Ontario, British Columbia or Prince Edward Island. Remember that the requirements to obtain such documents may vary depending on where you live. If you are unsure about what you need, reach out to your local real estate authority.
Reach out to BrokerLink today!
When you have to verify ownership of your own home, you might feel worried. After all, providing documents takes time because you have to go through the proper channels to find them. This may involve visiting a land titles office or finding the paperwork that shows your real estate transactions.
At some point along the way, you might wonder about the difference between home and homeowner’s insurance or maybe you want to find an insurance policy that suits your needs. There are several types of policies available, including:
First-time homebuyers often have trouble finding the right insurance. That’s why BrokerLink is here to help. Our team of brokers can help you whether you’re changing house insurance or want to save money by bundling your home and auto insurance policies. Call, use our online quote tool or visit one of our offices across Canada to get started.
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