What is title fraud in Ontario and how common is it?

Title fraud is a category of real estate fraud in which someone uses false identity documents or forged paperwork to either steal a registered homeowner's property outright or to take out a mortgage on a property they do not own and then disappear with the funds. In the most serious cases, a fraudster impersonates the true owner, "sells" or mortgages the property without the owner's knowledge, and the real owner discovers the problem only when a stranger shows up with keys or a lender demands payment.

Ontario has seen high-profile title fraud cases — enough that it has become a recognized risk, particularly for homes that are mortgage-free and for landlords who may not frequently visit their properties. The Land Titles system provides some government-backed protection through the Land Titles Assurance Fund, which can compensate innocent parties who suffer losses due to fraud or errors in the Land Titles system, subject to certain conditions and claims processes.

Title insurance provides an additional, often faster, layer of protection. Owner's title insurance covers the registered owner against losses from title fraud for the entire period you own the property, not just at the time of purchase. Monitoring your property's title through services like the Ontario government's Property Alert tool is another practical way to catch unusual registrations early.