Protecting Yourself from Real Estate Fraud and Identity Theft, Including Title Fraud by Renters

Earlier This Year, there have been two incidents of homeowners returning from trips to find their houses sold or listed for sale without their consent. Toronto police warned about a pair of individuals who impersonated the owners of an Etobicoke home, hired a real estate agent, and successfully sold the property, with new homeowners taking possession. Authorities are also investigating a second, similar case where the house was listed but not sold. Both incidents are believed to be connected.

Real estate fraud and identity theft are growing concerns for property owners, potential buyers, and landlords. Understanding the different types of real estate fraud, such as title fraud, foreclosure fraud, and title fraud by renters, and taking steps to protect your identity can help minimize your risk. In this comprehensive guide, we will discuss various ways to protect yourself from real estate fraud, the importance of title insurance, and what to do if you become a victim.

Understanding Title Fraud, Foreclosure Fraud, and Title Fraud by Renters

Title fraud occurs when a criminal forges property title documents or the owner's identity to sell or refinance the property without the legitimate owner's consent. Foreclosure fraud involves criminals targeting homeowners who are facing foreclosure, posing as foreclosure rescue specialists, or attempting to deceive the homeowner into signing over the deed to their property. Title fraud by renters happens when a renter forges the property owner's identity or property documents to sell or refinance the property without the legitimate owner's knowledge or consent.

Preventing Title Fraud by Renters

1. Thoroughly screen potential tenants by conducting background and credit checks.
2. Require a government-issued photo ID for all applicants and verify their identity.
3. Regularly inspect your rental property and maintain an open line of communication with your tenants.
4. Register for any available property fraud alert programs offered by local land registries or other agencies.
5. Keep your personal and property documents secure, both physically and digitally.

Steps to Protect Your Identity

1. Regularly monitor your credit reports and statements for any unauthorized activities or discrepancies.
2. Use strong, unique passwords for online accounts and change them periodically.
3. Be cautious when sharing personal information online or over the phone.
4. Shred sensitive documents, such as bank statements and credit card offers, before disposing of them.
5. Use secure, encrypted connections when transmitting sensitive information online.
6. Install security software and keep it up to date to protect your devices from malware and hackers.
7. Set up alerts with credit reporting agencies (such as Equifax, and TransUnion) to be notified of significant changes to your credit report or if someone attempts to open a new account in your name.

 Protecting Yourself from Real Estate Fraud

1.  
2. Verify the authenticity of any real estate professionals you work with, such as agents, brokers, and attorneys.
3. Be cautious of unsolicited offers or services related to your property.
4. Conduct thorough research on properties you are interested in purchasing, including reviewing the title history and public records.
5. Always read and understand all documents before signing them.
6. Keep your mortgage information in a safe place.
7. Consult your lawyer or notary before giving another person the right to deal with your home or other assets.
8. Research any company or individual who offers you a loan.
9. Do a land title search with your provincial or territorial land registry office to see the property owner's name and any mortgages or liens registered on the title.
10. Consider buying title insurance to protect yourself against losses from title fraud.

What to Do If You're a Victim of Real Estate Fraud

1. 1. Write down when you noticed the fraud and the actions you took, including the names of the people you spoke to and dates of communications.
   2. Contact your financial institutions and any other companies where you think accounts may be affected.
   3. File a report with your local police.
   4. Contact your provincial or territorial land registry office.
   5. Contact your country's main credit bureaus and ask them to put a fraud alert on your credit report.

Reporting Fraud to the Appropriate Authority

In Canada, for example, the Canadian Anti-Fraud Centre operates through a partnership of the Royal Canadian Mounted Police, the Ontario Provincial Police, and the Competition Bureau Canada. It is the central repository for information about fraud in Canada. Make sure to report any suspected fraud to the appropriate authority in your country.

Additional Tips for Landlords to Prevent Fraud

a. Use a written lease agreement for all rental transactions, detailing the rights and responsibilities of both parties.

b. Keep records of all rental payments, correspondence, and maintenance requests.

c. Regularly monitor the property's title and ensure all liens, mortgages, and other encumbrances are accurate and up-to-date.

d. If you use a property management company, ensure they have a solid reputation and follow their activities closely.

e. Stay informed about local rental laws and regulations to ensure compliance and reduce the risk of fraud.

Conclusion:

Protecting yourself from real estate fraud and identity theft, including title fraud by renters, is crucial in today's world. By staying vigilant, monitoring your credit, and following the steps outlined in this guide, you can minimize your risk and ensure a safe and secure property ownership or rental experience. If you believe you have been a victim of fraud, act promptly and report it to the relevant authorities.

prepared by.

Sami Chowdhury

Are you considering purchasing your dream home or looking to invest in a property? Or perhaps you're thinking of selling your current one? Allow me to guide you smoothly through the entire process, from start to finish, ensuring a hassle-free experience. I invite you to reach out for a complimentary, no-obligation consultation. Your journey to success begins with a single conversation!

Sami Chowdhury

Broker

RE/MAX Realtron Realty Inc., Brokerage

885 Progress Avenue, Suite 209, Toronto, Ontario, M1H 3G3

samichy@torontobase.com

Direct: (647) 725-0606

Office: (416) 289-3333

Fax:  (416) 289-4535

www.torontobase.com