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Summary: Title fraud is identity-based real estate fraud: a criminal impersonates a registered homeowner and either sells the property or registers a mortgage against it. It is a criminal offence under section 380 of the Criminal Code. Ontario's main protections are a title search at closing and owner's title insurance.
What is title fraud?
Title fraud is a form of identity-based real estate fraud. A criminal uses stolen or forged personal documents to impersonate the registered owner of a property, then either transfers title to a new buyer or registers a mortgage in the owner's name and disappears with the funds.
The owner usually does not learn about the fraud until much later, when mail stops arriving, a lender contacts them about an unfamiliar loan, or, in rarer cases, someone claiming to be the new owner appears at the door. Title fraud is a criminal offence under section 380 of the Criminal Code of Canada, the federal fraud provision. Frauds over $5,000 are indictable with a maximum sentence of 14 years.
How does title fraud happen in practice?
Title fraud follows a three-step pattern: the fraudster collects enough personal information to impersonate you, presents themselves as the registered owner to a lender or buyer, and walks away with mortgage or sale proceeds before the deception is detected.
Identity theft. A fraudster collects personal information through phishing, mail theft, data breaches, or social engineering, then produces convincing counterfeit identification in the owner's name.
Impersonation. Posing as the owner, the fraudster either approaches a lender for a mortgage or home equity line of credit (HELOC), or lists the property for sale through a real estate agent.
The payout. The fraudster receives the mortgage advance or the sale proceeds and disappears before the impersonation is discovered. By the time the true owner is alerted, the funds are typically gone.
Owners with fully paid-off homes are common targets, because there is no existing lender already monitoring the title for new charges. You can read section 380 of the Criminal Code in full at laws-lois.justice.gc.ca.
What are the warning signs of title fraud?
Title fraud is often invisible until significant damage is done, but a few signals are worth watching for. Most early warning signs involve your mail, your credit file, or unexpected outreach from a lender that does not match anything you authorized.
Mail stops arriving. Property tax bills, utility statements, or other mail addressed to the property stop showing up.
A lender contacts you about a mortgage you never took out. Missed-payment notices or default letters on an unfamiliar loan are a strong indicator.
Unexpected credit inquiries appear on your report. Lenders pulling credit in your name without your authorisation signals attempted impersonation.
A stranger claims to be the new owner. Rare, but it can happen in sale-based fraud where the property was listed under a fraudulent identity.
If any of these happen, the standard response is to report the matter to local police, contact the Canadian Anti-Fraud Centre (CAFC), place a fraud alert on your credit files with TransUnion and Equifax, and ask Teranet's OnLand portal to flag your title.
How do a title search and title insurance protect you?
Two standard protections in Ontario residential closings address title fraud directly. The title search confirms the seller's identity and ownership before closing, while an owner's title insurance policy covers losses and legal costs if title fraud occurs afterward.
| Title search | Title insurance |
When it happens | Before closing, conducted by your lawyer | At closing, in force afterward |
What it does | Confirms the seller's identity and ownership | Insures against title defects, including fraud |
Covers post-closing fraud | No | Yes |
Typical cost | Included in your legal fees | One-time premium, usually $200 to over $1,000 |
Who is protected | The buyer at the time of purchase | The owner, as long as they hold an interest |
The two work together. The title search closes the door on fraud at the moment of purchase; the policy covers you for the years that follow. For a closer look at what a lawyer actually does at closing, see what actually happens on closing day. For a deeper read on the policy itself, see Ownright's overview of title insurance.
What can you do to protect yourself?
You can reduce your title fraud exposure with a small set of habits. Most of them are free, and the most important paid step (an owner's title insurance policy) is usually a few hundred dollars, paid once.
Protect your personal information. Shred sensitive documents, use strong unique passwords, and treat your Social Insurance Number (SIN) as confidential.
Monitor your credit. Request a free credit report annually from both TransUnion and Equifax, and review it for accounts or inquiries you do not recognize.
Check your title periodically. Request an instrument report through Teranet's OnLand portal to confirm no unauthorized mortgages or transfers have been registered against your property.
Buy an owner's title insurance policy at closing. Your lender's policy protects the bank, not you. An owner's policy protects your equity.
Work with a licensed Ontario real estate lawyer. Your lawyer verifies the seller's identity, runs the title search, and registers your ownership correctly through Teraview.
At Ownright, we focus entirely on Ontario residential real estate law. We help homeowners with purchase closings, refinances, and sales, and every closing includes a full title search and a clear walkthrough of title insurance options. You can start your closing online or get in touch with any questions.
Frequently asked questions
Does title insurance prevent title fraud?
No. Title insurance does not stop fraud from happening. It covers the legal costs and financial losses involved in restoring your title and clearing fraudulent charges after the fact, which is why it is the main post-closing protection.
Who is liable if title fraud occurs?
It depends. Lenders who advance funds based on fraudulent documents typically bear the loss on the fraudulent mortgage itself, but the true owner can still face significant legal costs to unwind the registered charge. An owner's title insurance policy covers those costs.
How do I check whether my title has been altered?
You can request an instrument report through Teranet's OnLand portal, which shows all registered instruments against your property, including mortgages, transfers, and discharges. Your real estate lawyer can also pull this for you.
Is title fraud common in Ontario?
It is not the most common form of real estate fraud, but it has been a focus of police services, regulators, and insurers in recent years. The Canadian Anti-Fraud Centre and provincial police forces have flagged title and mortgage fraud as growing categories.
What should I do if I think I am a victim of title fraud?
Contact your real estate lawyer immediately, file a report with your local police, notify the Canadian Anti-Fraud Centre, place a fraud alert on your credit files at TransUnion and Equifax, and ask Teranet's OnLand portal to flag your title. If you have title insurance, open a claim with your insurer.
About the author
Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.
Legal references: Fraud in Canada is a criminal offence under the Criminal Code, R.S.C. 1985, c. C-46, s. 380. Land ownership in Ontario is governed by the Land Titles Act, R.S.O. 1990, c. L.5 and the Registry Act, R.S.O. 1990, c. R.20, with the provincial Land Registration Information System administered by Teranet. Title insurers in Ontario are regulated by the Financial Services Regulatory Authority of Ontario.
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.
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