The proposed changes come in the wake of several highly publicized recent cases where fraudsters have impersonated homeowners to obtain title to a property and then either sold the property or taken out additional mortgages.
An Ontario Court of Appeal decision last fall caused a sensation in real-estate circles when it ruled that a forged power of attorney could be used to create a valid mortgage. In that case, the appeal court ruled the mortgage was enforceable even though the wife used a forged power of attorney to apply, sign and obtain the mortgage. The court ruled that once the mortgage was registered, it was binding on the innocent husband even though he had no knowledge of the matter.
Susan Lawrence of Toronto is being held responsible for repaying a $300,000 mortgage she never sought or received.
In her case, an identity thief stole the title to her home, obtained the mortgage and disappeared with the cash.
"I think it's a good start," Lawrence said Friday following the minister's announcement. She also called upon banks, lawyers, real estate agents and the land title registry officials to exert more due diligence when it comes to land transactions. Greater attention to detail, she noted, might have prevented the fraud in her case.
"He (the fraudster) said he worked in a car wash and his statements of earnings said he earned $73,500 a year. I'd like to work in that carwash."
The proposed legislation will also increase the fines for fraud under the Land Titles Act to a maximum of $50,000 from $1,000 and deny access to the land titles registry to known fraudsters.
Phillips said the government also plans to apply for intervener status in Lawrence's appeal to have the court absolve her of responsibility for the falsely obtained mortgage. He noted, however, that the new rules on forged documents will not be applied to crimes committed before the legislation goes into effect.
Conservative leader John Tory said the Liberals should also ensure there are tougher penalties for the lawyers that are often involved with facilitating the fraud.
NDP MPP Peter Kormos said the Grits should also tighten up the operations of the province's electronic land registry system.
"There needs to be more integrity in the system so there is less likelihood of a forged or otherwise fraudulent document being registered," he said.
He noted the new rules also will not help innocent people who purchase a house from a fraudster, turn over the purchase price and then discover they have given the money to a thief who disappears.
canada.com
Toronto real estate. THE PROVINCE IS PLANNING ACTIONS AGAINST REAL
ESTATE FRAUD!
![Toronto real estate. THE PROVINCE IS PLANNING ACTIONS AGAINST REAL
ESTATE FRAUD!]()
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