One of the most prevalent problems facing the Canadian real estate industry is the issue of title fraud. Title fraud occurs when criminals manipulate property ownership records to unlawfully transfer the title of a property, leaving unsuspecting victims in financial and legal turmoil. And with the increasing prevalence of sophisticated cybercrime techniques, protecting oneself from real estate title fraud has become more crucial than ever. So, in this blog post, we will delve into the alarming reality of title fraud in Canada and provide valuable insights and practical tips to safeguard yourself from falling victim to this pervasive and devastating crime.
What Exactly is Title Fraud?
As we said earlier, title fraud is amongst the main types of fraud affecting the Canadian real estate industry. It can be seen as a deceptive act perpetuated by fraudulent individuals to manipulate property ownership records and then wrongfully transfer the title of a property to theirs. This type of fraud can result in severe financial and legal consequences for the unsuspecting victims.
As a new homeowner, when faced with this issue, the biggest challenge is proving that the real estate title has been tampered with. This is because proving that a title fraud has occurred is not always easy, as it will take significant time, effort, and money, especially if you don’t have a title insurance policy in place.
Additionally, you cannot sell or mortgage your home until the title is restored, which can disrupt or derail your financial plans.
What Kinds of Properties are Targeted?
Now that you understand what title fraud is and how it’s perpetuated, the question you are probably asking yourself is; what kind of properties do these criminals target? The short answer to this question is that title fraud can potentially target any property, regardless of its type or location. As long as such property has ownership records, their titles can be changed illegally.
However, we have also noticed that fraudsters looking to manipulate property ownership records often focus on properties that are mortgage-free, vacant, or owned by individuals who are absent or deceased. One of the main reasons why they target these types of property is because they offer an appealing opportunity for criminals to exploit loopholes and manipulate ownership records without immediate detection.
Steps to Take to Protect Yourself
As they often say in the medical world, prevention is better than cure – the same ideology can be applied in real estate. If you are a homeowner or a potential homeowner and you want to protect yourself from real estate title fraud, there are some proactive steps you can take.
- Monitor your property record regularly: One of the best ways to protect your investments from fraudulent individuals is to monitor your property records regularly. By staying vigilant at all times, you can easily monitor your property records for any unauthorized changes or suspicious activities. And to do this, you should regularly contact the land registry office to inquire about the frequency of title searches conducted on your property.
- Keep All Your Personal Information Secure: While this generally applies to everyone, as a homeowner, you should never be too careless with your personal information. This is because fraudulent people often use the personal information of a property owner to manipulate their ownership records.
- Establish Direct Communication Channels: As a prospective homeowner, you should establish direct and verified communication channels before engaging in property transactions. That is, you have to verify the identity of the property owner before sharing sensitive information or authorizing the transactions. Doing this will help you decide who’s legit and who is not.
- Practice Secure Online Habits: Another way to safeguard your property is to be extremely cautious about who you deal with online. You should be extremely cautious about your online transactions and avoid clicking on suspicious links or sharing personal information on unsecured websites. Lastly, endeavor to install up-to-date security software on your devices to keep out viruses and malware.
- Consult Professionals: Seek the advice of real estate lawyers, title insurance providers, and other professionals experienced in property transactions. They can guide you through the necessary steps to protect your property rights and provide valuable insights into title fraud prevention.
Title Insurance: What Does it Cover? And Where Can You Get It?
Title insurance can be seen as a crucial financial safeguard against title fraud. It covers losses arising from title defects, liens, encroachments, and even title fraud. Title insurance policies vary but typically cover legal expenses, financial losses, and restoration costs resulting from fraudulent activity.
To obtain title insurance, consult reputable insurance companies or a knowledgeable real estate lawyer who can guide you. Note that the earlier you get title insurance, the better for you.
Conclusion
Protecting yourself from real estate title fraud is critical to safeguarding your investments and ensuring you don’t become a victim of any type of scam. The more success stories of people avoiding real estate title fraud, the better. Take steps now to be diligent and properly investigate all property transactions that involve titles.
If you need assistance, contact our expert attorneys at Saanichton Law Group for protection from real estate title fraud. We have years of experience dealing with issues related to property and land titles and are well-equipped to help with any matters of concern when it comes to protecting yourself against these types of scams. Don’t leave yourself exposed – contact us at 2505440727 today to schedule a consultation.
