Horrible news, a second homeowner has found their house sold without their knowledge. CBC is reporting that this may be a growing problem connected to organized crime. This process, mortgage tile fraud, works like this: A tenant signs a lease, moves into the home and begins a rental period. This person then turns around, finds another real estate agent while impersonating the homeowner, stages the house and puts it up for sale on the open market. To pose as the homeowner, this person forges several documents including identification and credit reports.
At SOLO, we have spoken at length on the screening process. If, at the point of tenant screening, the realtor was more careful, this nightmare may have been avoided. Those who commit fraud may have been in trouble with the law before – and you can find out by searching on CanLii. They may have had recent Landlord and Tenant Board orders, which you can search for on OpenRoom.
Board member Varun Sriskanda appeared on AM980 radio to offer his thoughts on this recent news.
If you’re a realtor, don’t just get one form of identification. Get two or three. Forging documents gets harder the more you ask. Meet the individual and see the ID and documents in person. Look for inconsistent details or if fonts on the documents look different. With a driver’s licence, you can use an online tool from the Ontario Government to verify the license details. As Varun says, “Don’t ever accept documents on face value.”
Perhaps the most important thing to secure is title insurance. This protects the title holder from fraud and theft. Given that this sort of insurance is not a requirement in Ontario, you may want to go over your mortgage and ensure you’re covered. Title insurance can come from several insurance companies, so a starting point may be your lender or bank. The Financial Services Commission of Ontario (FSCO) offers a tool to search for licensed representatives.
Varun also appeared on CBC news with Aarti Pole to discuss these issues:
Fraud and misrepresentation are rampant in today’s housing market. For those that will do harm, the process of producing fake documents is trivial with software available today. Fake credit reports are common and easy to manipulate. Get credit reports directly from a third party, not the individual. As Varun says, “Be extra vigilant.” A recent CBC article outlines more ways you can protect yourself.
SOLO has been fighting to make changes to the real estate industry, including reducing LTB backlogs and improving rules and legislation. SOLO does this at no cost t its members. Please consider making a donation.
