Victim of Title Fraud in Ontario: How to Get Your Property Back

Learning that someone has transferred or mortgaged your home without your knowledge is alarming. It may come from a letter from a lender, a notice about your property, or a check of your own records. The law gives you tools to challenge it, but several of them depend on acting promptly.

This article explains the steps Ontario recommends, how the land register can be corrected, what compensation may be available, and how title insurance fits in. Every situation turns on its facts, so use this as a map and not a substitute for advice from a lawyer.

First steps if you think your title was targeted

Ontario's guidance for victims of real estate fraud lists several immediate actions. Doing them in parallel, as soon as you can, is generally sensible.

• Report the fraud 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 everything: letters, emails, the police report number, and notes of who you spoke to and when. A clear record helps your lawyer and any later compensation claim.

Check what is actually on title

Ontario's land registry is online only and holds the official ownership records for more than 7.4 million parcels. Anyone can search, view and download current and historical records, such as a parcel register, through OnLand for a fee. Pulling your parcel register shows what has been registered against your property and when.

Be aware of what ServiceOntario can do. It reviews and certifies registrations but cannot search, give legal advice or explain any property's records. If you need help making sense of what the documents mean, a lawyer can walk you through them.

Documents are registered electronically through Teraview by authorized account holders. Authorization to register is free to apply for, and to guard against identity theft and real estate fraud, applicants must provide 2 pieces of identification. How a correction is actually registered in your case depends on your situation, so it is worth confirming with a lawyer.

Why a fraudulent instrument may not stand

Normally, a registered instrument is effective as part of the register. Under Land Titles Act s. 78(4.1), that usual rule does not apply to a fraudulent instrument registered on or after October 19, 2006. In plain terms, a fraudulent transfer or mortgage registered after that date does not automatically gain the protection that registration usually gives.

This does not mean the register fixes itself. The Director of Titles or a court may rectify the register in the situations described below. How this applies to you depends on your situation, and that is why legal advice early matters.

Getting the register corrected, or compensation

Under Land Titles Act s. 57(13), the Director of Titles or a court may rectify the register in several situations. These include 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.

If rectification does not fully put you back, there is another route. A person wrongfully deprived of land through fraud or registration error may apply for compensation from the Land Titles Assurance Fund. The application goes to the Director of Titles within six years of suffering the loss under Land Titles Act s. 57(5.1), and a Hearings Officer decides eligibility and the amount.

Which route fits you, and whether you can use both, depends on the facts. A lawyer can confirm.

Title insurance and what to do next

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. It generally excludes defects the buyer knew about, environmental hazards and native land claims, and residential coverage lasts as long as you own the property. If you have a policy, notify the insurer promptly and ask your lawyer to review the terms.

• Report to police and your bank, and request the credit freezes.
• Order a current parcel register through OnLand and save it.
• Contact the Land Registry Office where the property is registered.
• Find your title insurance policy, if you have one.
• Speak with a lawyer about rectification and the six-year compensation deadline.

Frequently asked questions