Lizabeth Posted January 16, 2023 Share Posted January 16, 2023 There have been two incidents this month of homeowners coming back from a trip to find their house has been sold or listed on the market without their consent. Earlier this month, Toronto police warned the public of two people who impersonated the owners of an Etobicoke-area home, allegedly hired a real estate agent, and listed the house for sale. Police say the two unidentified individuals were able to sell the property, and new homeowners took possession of it. Toronto police said they are now investigating a second, similar incident. This time, police say the house was listed, but the fraudulent owners were not able to complete the sale. Investigators believe both cases are connected. So, what can prospective homebuyers and homeowners do to protect themselves against title fraud? TITLE FRAUD AND TITLE INSURANCE The word "title" is used to describe someone's right of ownership to land. Title fraud is when the tile of someone's home is stolen. According to the federal government, the fraudster will either sell the home or re-mortgage the house. "Title fraud usually starts with identity theft, which can happen if somebody steals your personal information," the federal government said. FCT, a residential insurance company, notes it’s up to the true homeowner to prove they’ve been scammed; if they don’t have title insurance, it can take “considerable time, money, and effort” to get everything back. Title insurance can protect property owners against any losses related to the property. While it is not a requirement to have it in Ontario, Osman Omaid, a realtor with Strata.ca, “strongly” advises getting it this kind of insurance can protect homeowners in many ways, not only during fraudulent sales, but also when previous owners haven’t paid off their property taxes, condominium fees, or utility bills prior to the sale. Title insurance is basically there to take care of you in any gray-scale areas where it’s sort of like, ‘Okay, I should have done my due diligence, but at the same time, it’s not really my fault that this happened [because] someone should have checked this,’” he said. HOW TO PREVENT REAL ESTATE FRAUD The federal government has a few tips online for what Canadians can do to protect themselves against real estate fraud, including keeping your mortgage information in a safe spot, speaking with your lawyer before giving someone else the right to your home, and researching anyone who tries to offer you a loan. If you think you have fallen victim to title fraud, the federal government recommends contacting the Canadian Anti-Fraud Centre, reaching out to your provincial land registry's office, and filing a police report. Quote Link to comment Share on other sites More sharing options...
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