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Summary: The most common real estate scams in Ontario are rental scams, title and identity fraud, investment scams, phishing, and foreclosure scams. The warning signs are similar across all of them: high-pressure tactics, requests for upfront fees or wire transfers, and deals that look too good to be true. Working with a licensed real estate lawyer, verifying everyone and everything before you pay, and carrying title insurance are your best protections.
Real estate transactions move large sums of money through complex legal steps, which makes them a target for fraud. Knowing the common scams and the warning signs they share is the first line of defence. Here are the ones to watch for and how to protect yourself.
What are the most common real estate scams?
Five come up most often, each with a simple way to reduce your risk:
Rental scams. A fraudster advertises a property that does not exist or is already occupied, collects a deposit, and disappears. Avoid it by verifying the property and the landlord before paying anything.
Title and identity fraud. A thief impersonates a homeowner to sell or mortgage a property, sometimes using counterfeit ID. Title fraud has become increasingly common in Ontario, which is why a careful lawyer verifies identity and why title insurance matters.
Investment scams. Fake opportunities promise high returns on properties that do not exist or are overpriced, often backed by forged documents. Research any opportunity thoroughly and be wary of high returns with little or no risk.
Phishing scams. Fake emails posing as a real estate company or contact link to bogus sites that harvest logins or banking details. Verify any message before responding and never act on wire instructions without confirming them directly.
Foreclosure scams. These target owners facing default with "solutions" that are illegal or fraudulent and can cost more than the original problem. Seek advice from a trusted source, such as a non-profit credit or housing counselling service, before acting.
What are the warning signs of a real estate scam?
Most of these scams share the same red flags, so learning them protects you across the board:
High-pressure sales tactics that rush you to decide.
Requests for upfront fees or wire transfers, especially to a new or changed account.
Deals, rents, or returns that seem too good to be true.
Counterfeit or inconsistent identity and ownership documents.
If anything feels off, slow down and verify independently before any money moves.
How can you protect yourself from real estate scams?
The single best protection is having a real estate lawyer represent your interests. Beyond that:
Work with licensed, reputable professionals. Verify the people and companies you deal with, and confirm contact details independently rather than from an email.
Verify before you pay. Confirm the property, the landlord or seller, and any wire instructions directly before sending funds.
Read everything before you sign. Understand the contracts and agreements, and ask your lawyer about anything unclear.
Use title insurance and a lawyer's diligence. Your lawyer reviews title and verifies identity, and title insurance protects you against title fraud and many defects you could not have found yourself. For the broader value a lawyer adds, see our 7 reasons why you need a real estate lawyer.
At Ownright, our lawyers use identity-verification software alongside their own document review to confirm that identification is authentic, and we review contracts, title, and other documents to protect your interests. For more on why clients choose us, see why choose Ownright.
Frequently asked questions
What is title fraud?
Title fraud is when someone impersonates a homeowner, often with counterfeit identification, to sell or mortgage a property they do not own. It has become increasingly common in Ontario, and title insurance plus a lawyer's identity checks are the main protections.
How do I avoid a rental scam?
Verify that the property and the landlord are legitimate before paying a deposit or any upfront amount. Be wary of listings that will not allow a viewing or that pressure you to send money quickly.
What are the red flags of a real estate scam?
High-pressure tactics, requests for upfront fees or wire transfers, deals that seem too good to be true, and counterfeit or inconsistent documents. Any of these is a reason to slow down and verify.
Does title insurance protect against title fraud?
Yes. Title insurance is one of the main protections against title fraud, covering many losses if someone fraudulently deals with your property, along with certain other title defects. Your lawyer can arrange it as part of your closing.
How does a real estate lawyer help avoid scams?
A lawyer verifies identity, reviews title and the contracts, flags warning signs, and ensures funds move safely, all of which make a fraudulent transaction far harder to pull off.
About the author
Benjamin Berry is a co-founder and principal lawyer at Ownright. He works on Ontario residential purchases, sales, and refinances, and writes to make the legal side of a real estate transaction clearer for the people going through it.
At Ownright, we focus entirely on Ontario residential real estate law. The best way to get ahead of a scam in a property transaction is to have a lawyer representing your interests from the start. You can start your closing online or get in touch with any questions.
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
