Property Title Fraud in Ontario: Warning Signs and What to Do

Title fraud happens when someone uses false documents or a stolen identity to transfer or mortgage a property that is not theirs. Owners often find out late, when a lender calls or a notice arrives for a loan they never took.

This article covers common warning signs, simple ways to check title, and the steps Ontario guidance and the statutes describe if fraud happens. Every case turns on its facts, so get legal advice early.

Warning signs to watch for

No single sign proves fraud, but these are worth acting on quickly.

• Mail about a mortgage, loan or property tax account that you did not open.
• Lender or collection calls about a loan secured against your home.
• Mail that stops arriving, which can mean someone changed your address.
• Unknown people claiming to own the property or trying to rent or sell it.
• A transfer or mortgage on the register that you do not recognize.
• A request to sign documents quickly, with pressure not to involve your own lawyer.

Properties with no mortgage, vacant properties and rental properties are generally easier targets because the owner may not be watching the property closely.

How to check title

The simplest check is to look at the parcel register. Anyone can search, view and download current and historical property records through OnLand for a fee. Check the current owner, any recent transfers and any new mortgages. Our article on reading a parcel register explains the parts.

Registration itself has safeguards. Authorization to register land documents electronically is free to apply for, and to guard against identity theft and real estate fraud applicants must provide 2 pieces of identification. Powers of attorney that contain personal information such as government ID or bank account details are not accepted by the land registration system, so keep that information out of any power of attorney you sign.

Remember that ServiceOntario cannot search, give legal advice or explain a property's records for you.

If you think fraud has happened

Ontario advises victims of title fraud to take these steps:

• 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.

Keep copies of the register, any letters and the dates you learned of each item. Do not sign anything new about the property until a lawyer has reviewed the situation.

Fixing the register and seeking compensation

Normally a registered instrument is effective as part of the register. That rule does not apply to a fraudulent instrument registered on or after October 19, 2006. The Director of Titles or a court may rectify the register where such a fraudulent instrument was registered, where a registered instrument would be absolutely void if unregistered, or to correct an error that would deprive someone of land they legally possess.

A person wrongfully deprived of land through fraud or registration error may apply for compensation from the Land Titles Assurance Fund to the Director of Titles within six years of suffering the loss. A Hearings Officer decides eligibility and amount. These routes apply to land under the Land Titles system, so how your property is registered matters. Whether a particular loss qualifies depends on the facts.

Title insurance is optional in Ontario. For a one-time premium it may cover unknown title defects, existing 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. Read the policy for its exact terms.

What to do next

• Pull a current parcel register now, and again at regular intervals.
• Make sure your mail and contact details with your lender and the municipality are current.
• If you find something wrong, follow the Ontario steps above and call a lawyer the same day.
• Note the six-year window for compensation and do not wait.

Frequently asked questions