Imagine waking up one day to find out that someone has stolen your home right out from under you. It sounds like a movie plot, but for many Ontario homeowners, title fraud is a very real threat. Title fraud happens when someone illegally transfers your property title to their name and either sells the home or takes out a mortgage against it. The good news? There are ways to protect yourself. Let’s break down what you need to know.
What is Title Fraud?
Title fraud typically occurs when a fraudster steals your identity, forges documents, and transfers your home’s ownership to themselves. From there, they can sell the property or get a mortgage, leaving you to deal with the mess. Seniors, frequent travelers, and homeowners with paid-off mortgages are often prime targets because they may not check their property records regularly.
Common Scenarios
- Fake Sales: A fraudster impersonates you and “sells” your home to an unsuspecting buyer.
- Mortgage Fraud: A fraudster uses your identity to get a mortgage on your home, leaving you responsible for the debt.
How to Protect Yourself
- Get Title Insurance: This is your first line of defense. Title insurance covers legal costs and financial losses if you become a victim of title fraud.
- Monitor Your Property Records: Regularly check your title and property records through the land registry to ensure no unauthorized changes have been made.
- Protect Personal Information: Keep sensitive documents like your property deed and mortgage paperwork secure. Shred any documents you no longer need.
- Watch for Red Flags: Be wary of unexpected mail or notices related to your property, like bills for a mortgage you didn’t take out.
The Role of a Lawyer
A real estate lawyer can help you navigate title insurance and investigate any suspicious activity. If you suspect title fraud, acting quickly with professional help can save your home and your sanity.
Stay vigilant, stay protected, and remember—a little prevention goes a long way in keeping your home safe from fraudsters.