Land Titles Assurance Fund Claims in Ontario: Lost Title

Discovering that someone else is now the registered owner of your property, or that a mortgage you never signed is on title, is alarming. Ontario has more than one tool for these situations, and they work in different ways.

This article explains the Land Titles Assurance Fund, who can claim from it, the deadline, and how a claim relates to correcting the register. It also covers first steps and a few related points. Every case turns on its own facts, so a lawyer can confirm what applies to you.

What the Land Titles Assurance Fund is

The Land Titles Assurance Fund is a source of compensation for people who lose land because of fraud or a mistake in registration. A person wrongfully deprived of land through fraud or registration error may apply for compensation to the Director of Titles.

It is about money, not about getting the property back. Whether you can also have title restored is a separate question, covered below.

Deadline and who decides

You must apply to the Director of Titles within six years of suffering the loss, under Land Titles Act s. 57(5.1). A Hearings Officer then decides whether you are eligible and how much you should receive.

• Who can apply: a person wrongfully deprived of land through fraud or registration error.
• Where to apply: the Director of Titles.
• Who decides: a Hearings Officer, on both eligibility and amount.
• When: within six years of suffering the loss.

Because the clock runs from the loss, do not wait for other steps to finish before getting advice about timing.

Compensation versus fixing the register

Where a fraudulent instrument was registered on or after October 19, 2006, the usual rule that a registered instrument is effective as part of the register does not apply to it. That can matter a great deal to an owner.

The Director of Titles or a court may rectify the register where a fraudulent instrument was registered on or after October 19, 2006, where a registered instrument would be absolutely void if unregistered, or to correct an error that would deprive someone of land they legally possess.

Which route fits depends on the facts, such as when the instrument was registered and whether the property is still in the wrongdoer's name. A lawyer can explain how the two relate in your situation.

First steps if you are a victim of title fraud

Ontario advises these steps for victims of real estate fraud.

• Report it to your local police.
• Get legal advice.
• Contact the Land Registry Office where the property is registered.
• Speak with your bank.
• Ask Equifax Canada and TransUnion Canada for a free security freeze.

ServiceOntario reviews and certifies registrations but cannot search, give legal advice or explain any property's records. Anyone can search, view and download current and historical property records, such as a parcel register, through OnLand for a fee.

Related protections and what to do next

Title insurance is optional in Ontario. For a one-time premium it may cover unknown title defects, liens, encroachments, survey and public-record errors and title fraud, but it generally excludes defects the buyer knew about, environmental hazards and native land claims. Residential coverage lasts as long as you own the property. It is separate from the Fund.

The Fund also appears in estate paperwork. If an attorney signs a survivorship application for a surviving joint tenant, a covenant to indemnify the Land Titles Assurance Fund is required, though since June 7, 2014 it is not required if a spousal statement and a law statement on the deceased's spousal rights are provided. A personal representative applying for transmission without a certificate of appointment in a small estate must also give that covenant.

• Note the date you learned of the loss and keep a record of it.
• Pull a current parcel register and gather your deed, mortgage and ID records.
• Make the police report and contact the Land Registry Office.
• See a real estate lawyer promptly about rectification, a Fund claim and any insurance.

Frequently asked questions