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| Expert Q&As |
Testimonial | Real Life Fraud
Stories | News
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| Note: This conversation took place in 2006, shortly after Susan Lawrence learned she had become the victim of real estate title fraud. In February 2007, the Ontario Court of Appeal overturned an earlier decision by declaring that a fraudulent mortgage taken out on Susan Lawrence’s home was invalid. The court decision means she will not be held accountable for the fraudulent mortgage. The decision adds an additional level of protection for homeowners in Ontario. However, consumers should not become complacent. The court’s decision does not eliminate an individual’s need to defend their title rights, should they fall victim to real estate fraud.
Imagine learning that someone has taken hold of your property and secured a mortgage against it. You must now navigate your way through an unfamiliar system, investing time, energy and worry – through no fault of your own. Title insurance takes care of all of the details related to restoring property title, leaving homeowner to get on with their lives.
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What would you do if someone unknown to you forges your signature, discharges
your existing mortgage, takes out a new mortgage for almost $300,000, pockets
the money, defaults on the mortgage and disappears? |
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| Ask Susan Lawrence. While going through proceedings to
sell her home earlier this year, the Toronto-area woman learned that she had
become the victim of title fraud, joining a growing number of Canadians who
have been victimized by real estate title fraud. |
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| We sat down with Susan to talk about her experience. |
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| Q. |
How did you first learn that something was wrong? |
| A. |
I went to the bank to discuss my mortgage because of the pending
sale and I was told they had no record of it. The mortgage had been discharged
without my knowledge. |
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| Q. |
What was your reaction when you realized you were the victim of
fraud? |
| A. |
I just couldn't believe it. I had heard of mortgage and real estate
title fraud but never thought it could happen to me. |
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| Q. |
How did it happen exactly? |
| A. |
I believe it all started when a For Sale sign went up on my front
lawn. The fraudsters must have gathered all the information they needed by
consulting an MLS listing for the property. Then someone simply posed as me to
fraudulently sell my house, discharge my small mortgage and take out a new one.
People can borrow large amounts of money without having to meet anyone in
person. Also, vast amounts of information about properties and home owners are
now available through Ontario's electronic land registry system. |
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| Q. |
So what happens now? |
| A. |
After several sleepless nights and endless hours spent with my
lawyer, the bank has finally withdrawn a possession lawsuit, which means I
don't have to move out. I can seek compensation for the fraudulent loss from
the Ontario Government's Land Titles Assurance fund, but only after exhausting
all other avenues and incurring legal costs that could run as high as $35,000. |
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| Q. |
What advice do you have for people who own their home or are about
to purchase a home to prevent this from happening to them? |
| A. |
This experience has been emotionally devastating for me. I wish
I had known that title insurance is available at fairly reasonable prices, even
for people who already own their homes. If I had title insurance, all the legal
proceedings, including my legal costs, would have been taken care of. So my
advice would be … get title insurance, be extremely guarded when it comes to
your identity, and if something does not look right, report it right away.
There are a lot of unscrupulous people out there. If this can happen to me, it
can happen to anyone.
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