Ontario Real Estate Fraud Legislation Proposed

The Ontario Provincial Government has announced that it plans to introduce a new law to protect home owners from real estate fraud. For the last year, real estate fraud has been a hot topic as currently home owners can have their title fraudulently stolen and have money borrowed by the fraudulent owner. If this happens the mortgage is still seen as a valid mortgage and the real home owner can be held responsible for the fraudulent mortgage. Title insurance will protect against real estate fraud for the most part but there are some that speculate that, if the laws were not changed, the insurance companies might be able to claim that since the mortgage was legal then it is not something that should be covered by insurance.

The new law would ensure that home owners that fall victim to real estate fraud would get their homes back free of any fraudulent debts, liens or encumbrances. “It is expected that the new legislation will be introduced this fall.” According to the Toronto Real Estate Board.

IMO – It’s about time they stopped sitting on the fence and started to help protect homeowners. Especially since most of the people that are victims are older people who have managed to clear their mortgage.