March is Fraud Prevention Month in Canada. It’s no secret that instances of fraud have been on the rise since the COVID-19 pandemic, especially real estate fraud.
Title fraud is a common real estate fraud which happens when fraudsters steal the title to your home.
The fraudster then sells your home or applies for a new mortgage against it.
Real estate professionals have to be aware of the rise in title fraud and watch out for the red flags in order to protect their clients as well as themselves in their personal lives.
How can you protect yourself from real estate fraud:
- It’s important to shred old documents rather than throw them in your trash. You do not want your information flying out of your garbage bin or getting into the wrong hands.
- If you are getting a loan from anyone, you must research the individual or company who is offering to give you the loan.
- Ensure to deal with licensed mortgage professionals when applying for a mortgage.
- Purchasing title insurance will protect you from losses in the event of a title fraud situation.
- If in doubt, you can do a title search of the property with the land registry office which will show the name of the owner, and any mortgage or lien registered on the title.
It’s also important to note that recent technological innovation such as remote signing and virtual viewing together with the rise of generative AI, has led to fraudsters being more sophisticated in carrying out title fraud.
It is more difficult than ever now to identify fake IDs which appear legitimate with the use of AI.
As real estate professionals, it is important to ask client questions and follow-up questions about themselves and potential property if necessary.
Trust your instincts when dealing with clients and verify the information provided to you if necessary. Contact a legal professional to do a title search if you are suspicious that the client is not who he / she claims to be.
Let’s keep staying safe and protect ourselves from being victims of title fraud.
Information from Government of Canada website and FCT blog.
Keep Staying Safe!
Ibitoye Law Office
Latest posts by Ibitoye Law Office (see all)
- Importance of Having a Will in Ontario - July 28, 2026
