Home title fraud on the rise since pandemic according to investigators, insurance companies

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Lawyers, insurance companies and the Ontario Real Estate Association are calling on governments to better respond to title fraud

Chicago Title Insurance Company did not have a single record of total title fraud, in which criminals impersonate a homeowner to sell a property, between the firm’s founding in the sixties and 2019. But now, the company is dealing with more than 30 claims in the GTA and Metro Vancouver, according to John Rider, its senior vice-president.

Mr. King says title fraud involves a team of criminals who surveil victims, forge their ID cards, open fake bank accounts and eventually impersonate them in dealing with real estate agents, lawyers and financial service providers. They often target homes that have been vacant for some time, as well as homes that have small or no mortgage balances so they can maximize their profits when a sale is made.

“I have concerns that we would have to start limiting our coverage to the industry, and if that happens it would fall completely to consumers, lenders and brokers,” said Mr. Rider, who added that his company has approximately 20 per cent of the market share of title insurance in Canada. “The people or groups who are committing these crimes need to face appropriate consequences – and those thinking about committing these crimes need to know they can and will be punished,” said Ms. DeTommaso in a written statement.

Tim Hudak, the CEO of the Ontario Real Estate Association, says the relative novelty of title fraud means it can be difficult to prevent.

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Blame the 27% real estate brokers who are currently or formerly convicted felons!

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