The important points
- Title fraud is a crime wherein a fraudster steals a homeowner’s title to their home, usually followed by selling it and pocketing the proceeds.
- Title fraud is almost always preceded by identity theft, because the fraudster must impersonate the homeowner to succeed.
- Title insurance protects against, among other things, title fraud.
What is title fraud?
Title fraud (or title theft) is when a fraudster steals a homeowner’s title to their home. The title is essentially the legal term for “ownership.” Title fraud can happen with any form of real estate, including houses, townhouses, condos, and even empty land.
To accomplish title fraud, the perpetrator usually has to steal a homeowner’s identity. Once they’ve done so, they impersonate the homeowner and sell their home.
Title fraud is usually accomplished through identity theft.
They may also attempt to take out a mortgage against the home (a form of mortgage fraud).
“They can both end up being the same thing, in a lot of cases,” Everything Financial’s Peter Cishecki said to CTV Morning Live. “Someone will go and take a mortgage out on your house. That’s the first step. So they actually borrow money, and you’re responsible for the debt. That’s the mortgage fraud part of it.
“Title fraud goes one step further, where now they own your house.”1
A victim of title theft no longer has a clear legal title to their home. That means, at minimum, they can’t sell it or leverage their equity in it until their title is re-established. It is expensive and time-consuming to unwind an instance of title theft.2
Title fraud isn’t widespread in Canada, but it is on the rise. Mortgage fraud, in which a fraudster impersonates a homeowner to obtain a mortgage on their home and pocket the money, is more common.3
How to protect yourself from title fraud
Protect your identity
First and foremost, protect yourself from identity theft. Identity theft is the first step in title fraud, as the fraudster must impersonate the property owner to commit the crime. Identity theft is a serious problem in Canada, with nearly 10,000 cases reported to the Canadian Anti-Fraud Centre in 2024, accounting for 19% of all reported fraud cases.4
To protect yourself, be wary of who you share personal information with. If you have any documents with personal information, don’t just toss them in the trash — shred them.
Limit strangers’ access to your mail by picking it up often (or opting for electronic document delivery wherever possible). If you move, tell the post office and all of your financial institutions immediately.
Keep an eye on your bank accounts and credit reports for any suspicious activity, and report it immediately if you see it.
Related articles
Take care when you buy a home
When you’re buying a new home and getting a mortgage, deal only with licensed or accredited professionals — no sketchy corner-cutting to save a dollar. Read everything before you sign it, and keep all your documentation securely stored.
Pay attention to the people you’re dealing with, including the original seller. You should be confident that everyone involved in the transaction is who they claim to be and has a genuine legal right to sell the property.
Keep a lien on your home
Title fraudsters are more likely to target a home that has no liens on it — that is to say, the mortgage is paid off, and there are no lines of credit registered against it.
Lien-free homes are more attractive targets for title fraud than homes with active mortgages or secured loans against them.
When there’s a lender with an interest in the house, that interest will show up during the process of the fraudster trying to push through the sale or take out a mortgage of their own. Though not foolproof, this at least offers an extra layer of protection. If the house is paid off, a lender might not notice anything amiss when the fraudster approaches them.
“There’s no mortgage or line of credit or anything attached to the title of your house, and that exposes you and makes it easier [for the fraudster] to gain access to a mortgage, gain access to your title,” said Cishecki. “One of the easiest ways to avoid it is the simplest thing. Put a home equity line of credit on your house, so you’re registering a debt.”1
You don’t actually have to use the line of credit, either. As long as it’s registered and open, it will show up as a lien on the house, even with a balance of zero.
Know who’s in your home
To succeed at title fraud, fraudsters will usually need access to the house at some point. Throughout the selling process, they may need appraisers, realtors, or prospective buyers to visit. For that reason, vacant and unoccupied properties are targets.
If you’re going to be away for an extended period, make sure you have someone trustworthy checking in regularly.
For landlords, it’s imperative to thoroughly screen tenants. While it’s very unlikely that any given tenant is going to participate in title fraud, you need to be able to trust the residents of your rental property.
Set up alerts
There are many ways you can proactively monitor warning signs of title fraud. For example, the credit reporting bureaus offer credit monitoring services, which will tip you off if there are any changes in your credit report.
Even setting up a Google alert for your home address can help — you should get a notice if it suddenly appears in real estate listings.
Get title insurance
Title insurance protects homeowners against losses relating to their title. Let’s take a closer look.
