Title fraud is a serious issue that affects homeowners and property buyers. This type of fraud can have severe financial and emotional consequences for the rightful owner of the property, who may lose their home and their equity in the process. Unfortunately, title fraud is on the rise in Ontario, specifically the Greater Toronto Area with at least two known instances taking place.
In this blog post, we will explore the different types of title fraud, how they occur, and what steps homeowners and property buyers can take to protect themselves. It’s important to be aware of the warning signs of title fraud, as well as the steps you can take to prevent it from happening to you. Whether you’re a homeowner, a property buyer, or simply someone who is interested in learning more about real estate fraud, this post will provide valuable information that will help you stay informed and protected.
It’s important to note that title fraud can happen in any place and although in this post we’ll be referencing it in the context of Ontario, Canada, the same principles and precautions apply to other places as well.
What Is A Property Title?
To understand what title fraud is, we must first understand what property title is.
In Ontario, a property title is a legal document that proves ownership of a piece of real estate. The title is issued by the government and is held by the current owner of the property. It lists the names of the current owner(s) and provides a legal description of the property, including its address and boundaries. The title also includes information about any mortgages or liens on the property and any other restrictions or conditions that may affect the property. In order to transfer ownership of a property, the title must be transferred from the current owner to the new owner. This is done by executing a deed or transfer of land and registering it with the government.
What Is Title Fraud?
Title fraud is a type of real estate fraud that occurs when someone illegally obtains ownership of a property by falsifying documents or using false information to transfer the title of the property to themselves.
In Ontario, Canada, title fraud can happen when an individual or group uses forged or stolen identification to impersonate the legitimate owner of a property and transfer the title to themselves. This can result in the loss of the property for the legitimate owner and financial loss. It is important to protect yourself by regularly checking your property title and reporting any suspicious activity to the authorities.
How To Prevent Title Fraud
To prevent fraud, homeowners and all Canadians should take several precautions, such as keeping their personal and financial information safe by using strong and secure passwords, destroying documents containing personal information, being cautious of phishing emails, and safeguarding their Social Insurance Number (SIN).
Protect Sensitive Personal Information:
Protecting personal information can protect you from title fraud in Canada by making it more difficult for fraudsters to obtain the information they need to commit fraud. You will want to protect sensitive personal information such as your name, address, and government-issued identification numbers like your Social Insurance Number (SIN).
This can include measures such as keeping personal information private, being cautious about sharing personal information online or over the phone, and monitoring your credit reports and financial accounts for suspicious activity.
For example, if you have an unsecured mailbox, consider getting a secured mailbox with a key and lock to access it. This will prevent fraudsters and criminals from walking up to your door, opening the mailbox, and stealing important letters and notices from the government which can contain your personal information. Additionally, when you are done with personal sensitive documents, be sure to dispose of them by shredding them. Do not throw out complete documents.
Purchase Title Insurance:
Buying title insurance can protect you from title fraud in Ontario by providing financial protection against any loss or damage that may occur as a result of a defect in the title to your property. This includes protection against fraud, forgery, and other title-related issues.
With title insurance, if a fraudster is able to forge documents and transfer the title of your property to themselves, the title insurance company will cover any financial losses you may incur as a result, such as legal fees to reclaim the property. They will also assume the defense of any legal action that may be taken against you as a result of the fraudulent transfer of title.
Title insurance also provides protection in case of other issues such as outstanding mortgages or liens, legal disputes over property boundaries, and unresolved will or inheritance issues.
It’s important to note that title insurance is usually purchased at the time of closing, and usually, it’s for the lender, but you can also purchase a policy for yourself.
Pull Title:
Pulling your property’s title, also known as conducting a title search, can protect you from title fraud by providing you with detailed information about the ownership history of your property and any outstanding liens or mortgages on it.
When you pull your property’s title, you can review the chain of ownership and look for any discrepancies or red flags that may indicate fraudulent activity. For example, if there are multiple transfers of ownership in a short period of time or if the names listed on the title do not match the names of the people you believe to be the rightful owners, these could be signs of fraudulent activity.
I would recommend pulling your title once every six months to a year. It costs less than $100 to do which is incomparable to the potential cost of damages if you did fall victim to title fraud.
Track Your Property Online:
Tracking your property online is another great way to protect yourself from title fraud.
By doing a quick search of your property address online, you can see if it has been listed for sale or for lease on the MLS® or any other classified websites. This is especially key if you have tenants living in one of your properties. You want to make sure they have not listed the property on other websites without your knowledge such as Airbnb.
This can easily be done by connecting with an experienced real estate agent such as Marco Pedri, Broker with Shoreline Realty Corp., Brokerage. Marco Pedri offers a complimentary service to track your property on the Toronto Regional Real Estate Board MLS®. With this service, you’ll be the first to know if your address is listed on the MLS®, so you can take immediate action to protect your property.
All you have to do is provide the address of the property you want to track, and we’ll take care of the rest. Our team will send you notifications by email, so you can stay updated on whether your home gets listed without your knowledge. Contact us now by clicking the button below.
Final Thoughts On Title Fraud & How To Prevent It
Title fraud is a serious issue that affects homeowners and property buyers. It occurs when someone illegally obtains ownership of a property by falsifying documents or using false information to transfer the title of the property to themselves. In Ontario, title fraud can happen when an individual or group uses forged or stolen identification to impersonate the legitimate owner of a property and transfer the title to themselves. This can result in the loss of the property for the legitimate owner and financial loss. To prevent title fraud, homeowners and property buyers should take several precautions.
- Protect sensitive personal information
- Purchase title insurance
- Pull your property’s title occasionally
- Track your property online
It is important to note that these recommendations are not mutually exclusive and are not an exhaustive list of options available. To ensure the security of your property title, it is recommended to consider implementing all four tactics.
Disclaimer: The information provided on this website is for general informational purposes only. It is not intended as legal advice, and should not be relied upon as such. If you believe you are the victim of title fraud, it is important to seek professional legal advice and contact local police authorities immediately. The information provided on this website is not a substitute for professional legal advice, and we strongly recommend consulting with a qualified attorney for any legal matter. We take no responsibility for any actions taken based on the information provided on this website, and by using this website, you acknowledge that you have read and understand this disclaimer.
