Title fraud in Toronto is, unfortunately, a term a lot of homeowners are learning this year. Multiple news stories have been published detailing incidents of people impersonating the owners of a Toronto-area home, hiring a real estate agent, and trying to sell someone else’s home for a massive profit, unbeknownst to the actual homeowner who is either travelling or not at the residence for an extended period of time.

If you’re a homeowner who likes to travel or who isn’t always at their Toronto residence year-round, you may be wondering if your GTA real estate is safe from title fraud and what can be done to protect you.

What Is Title Fraud?

The ‘title’ is the rights of ownership to the land. Title fraud is when ownership rights of a home are stolen. From there, the party committing the fraud will either sell the home or attempt to re-mortgage.

How Does Title Fraud Happen?

Title fraud is far from easy to do. It’s quite rare, considering the number of properties that change hands every year in Ontario.

That said, title fraud is a form of fraud that carries with it one of the lowest risks and highest rewards.

If someone has stolen your identity or stolen personal information, that’s typically how they can gain access to what they need to commit title fraud. Should someone commit fraud using the title to your property, just like it is when personal information is stolen, it is up to the victim to prove they have been scammed. This can take time and money.

Looking to sell your home? The following resources will help:

Should I Get Title Insurance?

Title insurance is insurance to protect property owners against losses related to the property. While there is no rule or law for a homeowner in Toronto to have title insurance, it’s always advised to have it.

Title insurance can and will protect you in the event of title fraud. It’s not singularly used for that, either. Title insurance protects you in case there are unpaid property taxes prior to your homeownership, condominium fees that haven’t been paid by the prior owner, or utility bills remaining from prior ownership.

What Else You Can Do

Above getting title insurance for your property, a homeowner can do other things to prevent title fraud.

  • Keep your mortgage information safe and protected.
  • Before giving anyone else the right to access your home regularly, speak with a lawyer.
  • If you’re considering taking a loan from an unverified third-party, do your due diligence and research.

Toronto Real Estate Agents Have Their Responsibility, Too

Real estate agents do have an obligation to perform due diligence when taking on clients. As real estate agents, we are required to make our best effort to prevent misrepresentation, fraud, and unethical practices in the real estate trade. The use of the land registry service to verify property ownership and verification of government-issued photo identification are two of the more common ways to do this.

What You Can Do As A Victim Of Title Fraud In Toronto

If you are a victim of title fraud, it’s recommended to file a police report at your earliest, contact the Canadian Anti-Fraud Centre, and to advise the Ontario land registry office of what’s happened.

Do you have more questions about South Etobicoke Real Estate? You can call us directly at (416) 319-6893 or email info@adrianandrea.com to get in touch!