Legislation to protect homeowners from real estate fraud on horizon

Submitted by Daniel on Tue, 2006-09-19 00:27.

The Ontario government intends to introduce legislation this fall to help ensure that landowners do not lose their homes because of real estate fraud or become responsible for fraudulent mortgages... If passed, the proposed legislation will:

  • ensure that property ownership cannot be lost as a result of the registration of a falsified mortgage, fraudulent sale, or a counterfeit power of attorney
    • instead, an innocent homeowner's title will be restored and the fraudulent document will be nullified
  • introduce new safeguards for suspending and revoking the accounts of fraudsters so they cannot register documents
  • raise existing fines for real estate fraud-related offences from $1,000 to $50,000

The Ontario government also plans to work with the federal government to:

  • seek amendments to the Criminal Code to make real estate fraud a separate offence
  • establish a national database of real estate fraud cases to properly combat the cross-border element of this crime

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