Real estate fraud may cause you large financial losses. If you’re a victim of real estate fraud you may find out that you no longer own your home. You may also notice on your credit report that additional mortgages have been taken out in your name.
Howreal estate fraudhappens
There are two main types of real estate fraud that may result in financial loss: title fraud and foreclosure fraud.
Title fraud
Title fraud happens when fraudsters steal the title to your home. They sell your home or apply for a new mortgage against it. Title fraud usually starts with identity theft, which may happen if someone steals your personal information.
Learn more about identity theft and fraud.
Foreclosure fraud
Foreclosure fraud usually happens when you're having problems making your mortgage payments. Fraudsters may try to trick you into transferring them your property title in exchange for a loan. Fraudsters usually keep the payments you make and possess the title to your home. They may resell or refinance your house.
Mortgage fraud
Mortgage fraud, also called application fraud, happens when you provide false information on a mortgage application. Someone else may try to falsify your documents or encourage you to do so. When that happens, you may be held responsible for committing mortgage fraud. It may also impact your ability to obtain credit or a mortgage in the future.
Learn more about mortgage fraud and how to protect yourself.
Protect yourself from real estate fraud
To help protect yourself against real estate fraud:
- when applying for a mortgage, deal with licensed or accredited mortgage and real estate professionals
- fully read any documents before signing them
- keep your mortgage information in a safe place
- shred old documents rather than throwing them in the trash
- contact your mortgage lender first if you’re having trouble making your mortgage payments
- consult your lawyer or notary before giving another person a right to deal with your home or other assets
- research any company or individual who offers you a loan
- do a land title search with your provincial or territorial land registry office. It will show the name of the property owner and any mortgages or liens registered on the title
- consider buying title insurance to protect yourself against losses from title fraud
If you're a victim of real estate fraud
If you think you’re a victim of real estate fraud:
- write down when you noticed the fraud and the actions you took. Include the names of the people you spoke to and dates of communications
- contact your financial institutions and any other companies where you think accounts may be affected
- file a report with your local police
- contact your provincial or territorial land registry office
- contact Canada’s two main credit bureaus:TransUnionandEquifax, and ask them to put a fraud alert on your credit report
Report the fraud to the Canadian Anti-Fraud Centre
The Canadian Anti-fraud Centre is jointly managed by the Royal Canadian Mounted Police, the Ontario Provincial Police and the Competition Bureau Canada. It's Canada's central repository for information about fraud.
Contact the Canadian Anti-Fraud Centre.
Related links
FAQs
As a first step, report the matter to your local police. If you wish to remain anonymous, you can also submit a tip to Crime Stoppers (1-800-222-TIPS) or to the Canadian Anti‑Fraud Centre.
Is home title fraud a problem in Canada? ›
The chances of that scenario playing out may seem far-fetched, but experts say title and mortgage fraud are fast growing in Canada and homeowners should take steps to protect their properties — and their identities.
How do I report fraud to Canada? ›
Tips for reporting online
You'll need to start over or call our toll-free line to report (1-888-495-8501).
What is the penalty for mortgage fraud in Canada? ›
A conviction could carry a maximum prison term of up to 14 years. If convicted in fraud of more than $1 million, the Criminal Code of Canada then imposes a minimum jail sentence of two years.
How do you handle real estate fraud? ›
Not only does this step protect your rights, but it also shields others from becoming victims.
- Document Everything. Before diving into the process to report real estate fraud, arm yourself with evidence. ...
- Contact Local Law Enforcement. ...
- Notify California Department of Real Estate (DRE) ...
- Warn Higher Entities. ...
- Find Help.
Under the Criminal Code of Canada, a charge of fraud can be brought for any act of deceit, falsehood, or other fraudulent means intended to “deprive the public or a specific person of money, property, services, or valuable security.” It is essentially a crime of theft and shares penalties similar to those for theft ...
How do I protect my home title in Canada? ›
How to protect yourself from real estate title fraud
- Protect your identity. ...
- Work with licensed and accredited professionals. ...
- Contact your mortgage lender first. ...
- Read through documents before signing them. ...
- Get title insurance.
Yes, fraudsters could target your home title and try to transfer it into their name. This is also called deed fraud, and while it rarely happens, it's still worth protecting yourself against this and other types of identity theft.
Is home title fraud legit? ›
Lastly, contact an experienced attorney so they can help you take the necessary legal steps. While home title fraud is rare, it is real, and there have been victims who have unknowingly lost their homes or suffered considerable financial losses.
Who handles fraud in Canada? ›
The Canadian Anti-Fraud Centre collects information on fraud and identity theft. We provide information on past and current scams affecting Canadians. If you think you're a victim of fraud, report it!
According to Section 380 of the Criminal Code of Canada, anyone who commits fraud is guilty of an indictable offence and is subject to a prison term of no more than fourteen years when the offence amounts to more than $5,000.
What is the number for fraud prevention in Canada? ›
IF THE SCAMMERS HAVE YOUR ADDRESS, and are sending someone to your home to pick up money, or if you feel your immediate safety is threatened in any way, please call 911 to report a fraud in progress. IF YOU DID NOT LOSE MONEY: Contact the Canadian Anti-Fraud Centre toll-free at 1-888-495-8501 or online.
Can you go to jail for mortgage fraud Canada? ›
Can you go to jail for mortgage fraud in Canada? Yes, mortgage fraud is a criminal offence in Canada, and those found guilty can face severe consequences, such as fines, imprisonment, and a criminal record.
What is the most serious type of mortgage fraud? ›
Fraud for profit aims not to secure housing, but rather to misuse the mortgage lending process to steal cash and equity from lenders or homeowners. The FBI prioritizes fraud for profit cases.
Do people get caught for mortgage fraud? ›
Is lying on a mortgage application a federal crime? Yes, lying on your mortgage application (whether it involves committing occupancy fraud or not) is a federal crime, and a serious one at that. You could pay large fines or spend decades in prison if convicted.
How do I anonymously report someone to immigration Canada? ›
To report immigration-related concerns in Canada, contact the Canada Border Services Agency (CBSA) through their Border Watch Tip Line at 1-888-502-9060. Provide specific details about the issue, and you may choose to remain anonymous.
Where do I report mortgage fraud in Canada? ›
Report fraud
If you suspect that you've been the victim of mortgage fraud, contact your local police department. Or contact the Canadian Anti-Fraud Centre.
How do I get my money back from a scammer? ›
Contact your bank immediately to let them know what's happened and ask if you can get a refund. Most banks should reimburse you if you've transferred money to someone because of a scam.
