The Ontario legislature recently passed a bill intoduced by the Minister of Government Services to help
prevent title fraud and ensure innocent individuals do not lose their homes as a result of it.
Title fraud usually involves fraudsters using stolen or forged identity documents to transfer owner's title to himself or herself, securing a mortgage on the property and then disappearing with the mortgage proceeds.
The government views any amount of fraud as unacceptable and to minimize the risk, passed the Ministry of Government Services Consumer Protection and Service Modernization Act , 2006. This legislation amends the province's
land registration laws to:
Ensure that a homeowner will not lose their property due to the registration of a false mortgage, fraudulent sale or counterfeit power of attorney. The changed laws will ensure that an innocent homeowner will not have their home
stolen from under them.
Create an expedited process for the Land Titles Assurance Fund, allowing the ministry to make earlier payments to innocent indididual homeowners or purchasers of a home who have suffered a loss in a clear case of fraud, a decision
on compensation will be made within 90 Ddays.
Ensure fraudsters do not have access to the system. The Director of Land Registration will have additional powers to suspend or revoke an individual's access to the electronic registration system.
Dramatically increase existing fines for real estate related offences to $50,000 from $1,000.
Introducing new rules on who can register documents (e.g. the transfer of a home from one owner to an another and/or
the addition of a mortgage to title) on the electronic land registration system. Tightening the system by limiting who can register documents will further decrease the risk of fraud by ensuring registrants are certified, professional and
responsible.
For more information visit Ministry of Government Services
