Is Your Home at Risk? 5 Must-Know Facts About Title Fraud in Ontario

Homeownership is one of the most significant financial commitments a person can make. But what if someone stole your home without ever stepping foot inside it? Title fraud, once considered rare, is now a growing concern in Ontario’s real estate landscape. From identity theft to forged documents, criminals are exploiting legal and administrative gaps to walk away with millions in stolen property value or fraudulent mortgage proceeds.

In a market as competitive and fast-moving as Ontario’s, understanding title fraud is not optional—it’s essential. Here are five things every homeowner, buyer, and investor should know about this evolving threat.

1. What Is Title Fraud—and How Does It Happen?

Title fraud occurs when someone illegally transfers ownership of a property by impersonating the legal owner. In many cases, the fraudster uses stolen identification and forged documents to fabricate a property transfer. Once the fraudster is registered on title, they can:

Sell the property to an unsuspecting buyer and disappear with the proceeds
Use the fraudulent title to secure a mortgage or line of credit, withdrawing large sums before vanishing

These schemes often target properties that are:

Mortgage-free (with untapped equity that criminals aim to cash out)
Vacant (where the homeowner is away for extended periods)
Rented out (where imposters may pose as owners or gain insider access)
Owned by seniors (who may be less likely to monitor title activity)

The impact is significant: the true homeowner may return from vacation or check their property only to find someone else living there—or a surprise mortgage registered against their home.

2. Who Bears the Loss—and What Does the Law Say?

Ontario operates under a system called deferred indefeasibility of title. This means that if fraud occurs, the true owner usually retains the legal right to reclaim the property—but the process can be long, complex, and emotionally draining.

A key precedent is the Ontario Court of Appeal case Lawrence v. Wright (2007). In this case, a fraudster impersonated a homeowner, transferred the home into their name, and secured a mortgage. When the real homeowner discovered the fraud, the court ruled that:

The fraudulent transfer was void, and the rightful owner’s title remained valid
The lender who provided the mortgage to the fraudster had no claim against the home
The lender’s only remedy was to seek compensation from Ontario’s Land Titles Assurance Fund

In practice, this legal framework prioritizes the original owner’s rights but may leave innocent buyers or lenders facing losses and lengthy compensation processes. It’s a stark reminder that even with safeguards, the fallout from title fraud is complicated and costly for everyone involved.

3. Title Insurance: Your Best Line of Defense

Title insurance is the most effective financial protection against the consequences of title fraud. This one-time insurance policy, typically purchased at closing, protects homeowners and lenders from losses caused by:

Title defects
Forgery and fraud
Unknown liens or easements
Property boundary disputes
Registration errors

If a fraudster fraudulently transfers your title or registers a fake mortgage on your property, your title insurer will:

Pay legal costs to resolve the issue
Coordinate with authorities and the land registry
Reimburse you for covered losses, up to the policy limit

For those who purchased property in the last 25 years, it’s likely you already have title insurance. But if you bought your home earlier or opted out, you can still purchase a policy today. The cost typically ranges from $250 to $500, depending on the property type and value. That one-time premium provides lifelong coverage for as long as you own the property.

4. Practical Steps to Prevent Title Fraud

While insurance is vital, it shouldn’t be your only defense. Preventing title fraud starts with proactive behavior. Here are key steps every homeowner can take to reduce their risk:

a) Monitor Your Title

Order a title search through ServiceOntario or a real estate lawyer to confirm you’re still listed as the rightful owner. Set a recurring reminder to check this annually.

b) Safeguard Your Identity

Since most fraud begins with identity theft, keep personal documents like passports, SIN cards, and bank statements secure. Shred paperwork with personal details before disposal. Use strong, unique passwords for online accounts, and be cautious about sharing information via phone or email.

c) Watch for Red Flags

Take immediate action if:

You stop receiving property tax or utility bills
You receive loan statements for mortgages you never applied for
You find ownership notices in the land registry that you don’t recognize

These are often signs that your title or mailing address has been changed without your consent.

d) Secure the Title with a Line of Credit

Registering a mortgage or Home Equity Line of Credit (HELOC), even if unused, places a charge on the title. This requires verification before a new registration, creating an extra hurdle for fraudsters.

e) Be Vigilant with Rentals and Absences

When renting your home, verify tenant IDs and references thoroughly. If you’re away for long periods, ask a trusted friend or family member to regularly check the property and collect mail.

5. What to Do If You Become a Victim

Title fraud is not only distressing, it demands quick and coordinated action. If you suspect you’ve been targeted:

Contact your title insurer immediately (if insured)
Notify ServiceOntario to request a title freeze or correction
Report the fraud to police and obtain a case number
Alert the Canadian Anti-Fraud Centre and relevant credit bureaus
Consult a real estate lawyer to begin the legal process of restoring title or voiding fraudulent registrations

Acting swiftly improves your chances of resolving the situation and securing compensation.

Bonus: What Buyers and Lenders Should Know

It’s not just homeowners who need to worry—buyers and lenders can also fall victim to title fraud if they unknowingly transact with a fraudster. Here’s what they should do:

Buyers:

Always work with trusted real estate agents and legal professionals
Ask your lawyer to check for recent suspicious transfers or changes in title
Don’t skip title insurance—it protects both buyers and lenders

Lenders:

Verify borrower identity using in-person or secure digital methods
Check the property’s history—recent title transfers or payoffs can be red flags
Require title insurance on every mortgage

Stay Protected, Stay Informed

Title fraud is a serious and growing risk in Ontario, but it’s not unavoidable. With a combination of diligence, legal awareness, and title insurance, homeowners and investors can dramatically reduce their exposure.

At Medvisory, we work closely with physician investors to ensure that real estate assets are not only well-chosen—but well protected. Whether you're acquiring a new property, managing a rental portfolio, or refinancing, our team helps you navigate legal risks with confidence.

Because in today’s market, protecting your title is just as important as owning the property itself.