Did you know your home can be stolen while you’re still living in it? It’s called “title fraud” and it’s a potential outcome of being a victim of identity theft.
Protecting yourself against identity theft is a precaution more and more people are taking these days. I know many families that will have a low limit credit card used for just online purchases. We have to be careful about what personal information we put online, and the dangers posed by phishing are well known at this point.
With title fraud you may not even be aware that you’ve been a victim until several months after it has happened. The fraudster will pose as the homeowner and use a collaborator (or a dupe) in a law firm to change who the registered home owner is. The fraudster will then approach a mortgage broker or a bank to refinance the home that they now “own”. The fraudster takes some of the mortgage proceeds and put that in an account so the first few months of payments are made and, if it all goes according to their plan, they’re somewhere warm and sunny before the shoe drops.
As a homeowner you won’t permanently lose your property. Ontario’s land titles system is set up so that fraudulent documents are of no force or effect, even if they’re discovered years later or relied upon by someone else acting in good faith. Untangling the mess can be stressful and time consuming. We don’t want to make it easy for people to profit from this kind of fraud while you are out there trying to make an honest living. So here are a few things you can do to make yourself less vulnerable to this type of fraud:
- Put important identification (ID) in a safe place. This includes your Social Insurance Number, birth certificate, passport and any other cards or documents that show your personal details.
- Before throwing them away, shred all documents that have your personal information (such as your name and address) on them—including old credit card statements or other old ID.
- Share your personal information only with companies you know and trust. Don’t give out more than you need to.
- Don’t leave personal information lying around at home, in your vehicle or at the office.
- If you are going to be away, arrange for a trusted neighbour to pick up your mail. You can also go to your local post office (with identification) and ask for Canada Post’s Hold Mail service. There is a charge for this service.
- Order a free copy of your credit report at least once a year from one of the two credit reporting agencies in Canada, TransUnion and Equifax, to make sure that all the accounts listed belong to you.
- If you did not initiate a phone call, don’t give out any personal information or a credit card number over the phone, even if the caller claims to be from a legitimate company. Instead, get a name and number from the person calling and verify that the number and company are legitimate before calling bac
- Contact your mortgage lender first if you are having difficulty making your mortgage payments.
- Consult your lawyer if you wish to give another person a right to deal with your personal assets, and make sure you cancel this right if you don’t need it anymore.
- Consult your provincial land registry office to ensure that the title of your home is in your name.
- Check your credit report regularly to ensure the information is accurate. You can get a credit report for free by mailing your request to one of the two credit reporting agencies, Equifax and TransUnion.
- Consider getting title insurance. Title insurance covers losses related to title fraud and legal expenses to restore a title. There are two types of title insurance:
- lender title insurance, which protects the lender until the mortgage has been paid off
- individual title insurance, which protects the homeowner from losses as long as you he or she owns the home, even if there is no mortgage.
If you think you have been the victim of title fraud, or if you suspect you’re dealing with someone who’s committing title fraud, please go talk to the police.
By Rob Hiseler
Rob Hiseler is a local lawyer who lives in Millbrook. Office hours in Millbrook are the first and third Wednesdays of the month. Other meeting times are available by appointment.
