For many Toronto landlords, their property is their biggest and most stable asset – a way to save for the future and gain a steady passive income. Securing that asset doesn’t just mean maintaining your property, it also involves protecting it from fraud. 

There have been a rash of title fraud cases in the news in recent weeks, with Toronto homeowners finding their properties sold or mortgaged without their knowing. 

In one incident, an unlucky couple came home from a work trip only to find new occupants making themselves at home inside. In another, criminals impersonated a 95 year old homeowner who had recently moved to long-term care, using fake identity documents to put his property on the market while his relatives tried to rent it. 

What is title fraud?

Title fraud is a type of identity theft where the criminal poses as the property owner – either by forging their identity documents or stealing them – to refinance or sell their home without them knowing. 

Usually, the first sign the homeowner has that something’s wrong is when the For Sale sign goes up or they get a letter from their financial institution to say their mortgage is in arrears.

It sounds far-fetched, but title fraud is worryingly common and has become even more widespread since the pandemic. When it happens, it’s devastating. It’s up to the property owner to prove their credentials, and that can be a months-long process involving the police, the bank, lawyers, and the courts. Victims are often pushed to the limits of their emotional, and financial resources.

3 Ways Toronto landlords can protect themselves

1. Follow security best practices

The first step in title fraud involves stealing your identity, so make that more difficult for criminals by following basic security guidelines:

• Beware of phishing scams (where criminals use emails and/or fake websites to obtain your personal information)
• Store and dispose of all personal information carefully
• Use strong passwords and strengthened authentication when keeping or sharing personal data online
• Be extremely careful when sharing your bank details, personal info, or social security number. If in doubt, don’t.

2. Get title insurance

Title insurance won’t stop criminals committing fraud, but it will significantly lessen any headaches if they do. 

If the worst happens, your insurer will cover the cost of legal action until it’s resolved, depending on your policy. 

3. Vet tenants carefully

Untrustworthy tenants are a liability for landlords. They’re in your property, have access to your mail, and could pose as the homeowners in your absence.

That’s why it’s crucial to properly screen any prospective tenants, checking their credentials and references. In Toronto’s hot housing market, tenant fraud is also becoming a growing problem forcing landlords to take extra precautions.

Working with a professional property management company can offer landlords peace of mind. At Highgate, we thoroughly vet all potential tenants with in-depth screening that ensures you find reliable, long-term tenants.

Our tenant investigations include running independent credit reports, verifying job references and employment history, and even screening social media accounts. We don’t leave anything to chance so landlords can be confident their property is in good hands.

Over our three decades in the business, we’ve helped hundreds of GTA landlords manage their properties and protect themselves from fraud. Contact the Highgate team today to see how we can help you make the most of your investment.