Property Title Fraud
What is property title fraud? And how can you prevent it from happening?
Property title fraud is when a person uses fake identification or forged documents to steal the identity of a homeowner. Essentially, fraudsters take away their “title,” or legal ownership of their property.
Once fraudsters have their hands on a property’s title, they can do what they want with your home. They can re-mortgage it, sell it, or extract value.
Victims of title fraud lose the right to mortgage their homes. They can no longer use their equity and can’t sell the property until they re-establish their title rights through the Canadian courts.
Sadly, Homeowners often don’t learn about what’s happened to their property until fraud has already been committed. They often find out through notice of missed mortgage payments or when they try to sell their home.
The number one thing you can do to help yourself is to get title insurance!
Title insurance is an insurance policy that protects property owners and their lenders against losses related to the property’s title or ownership, including from title fraud.
While title insurance can’t prevent you from becoming a victim of fraud, it’s the most critical thing to mitigate its consequences!
Title insurance can cover legal expenses incurred by homeowners seeking to restore their right to their property’s title, according to FCT.
It protects homeowners from fraudulent claims on their property, and pays for legal expenses to re-establish the homeowner’s title rights.
It can also protect the unknowing buyer of a fraudulent home. The true owner will likely get their home back as well as the unwitting buyer will get their money back.
Renting your home could put you at a higher risk
Because tenants have physical access to your home, this could put you at higher risk.
If you don’t forward documents containing your personal information to your new home, documents like bank statements, tax returns, and driver’s license renewals, can end up in the hands of potential fraudsters.
We recommend having rent payments come through banks instead of cash to leave identifiable paper trails.
Fraud Tips
The Canadian Anti-Fraud Centre offers the following tips for preventing identity theft:
- Be wary of who you share personal information with.
- Regularly check credit card reports, bank and credit card statements, and report anything irregular.
- Shred documents containing personal information before placing them in the garbage.
- Limit mail theft by regularly retrieving mail.
- Notify the post office, financial institutions, and other service providers of your new address when you move.
For more information on how to prevent identity theft, visit the following links: