Real Estate Fraud Is Rising — How Title Insurance Can Protect You

Real estate fraud is becoming increasingly prevalent, even in the homes we live in. In an unusual case in Ontario, in 2022, an adult daughter fraudulently registered the title to her parents’ home in her own name, registered a mortgage against the property and used the proceeds to pay off her own property. The parents discovered the issue in 2024 when a property tax bill arrived in their daughter’s name and have only just settled the case in 2026.1

Land title systems and laws vary across Canada, but in Ontario, where the case was located, the system is built on the principle of indefeasibility, meaning that once a document is registered on title, it is generally guaranteed. However, since 2006, Ontario law has clarified that fraudulent instruments, even if registered, are void.

Despite this protection, title fraud remains an ongoing risk. As fraud techniques become more sophisticated, disputes can lead to years of legal battles. Most mortgage lenders require title insurance as a condition of financing to protect their interests, yet it is not legally required for buyers in Canada.

That said, title insurance policies typically provide coverage for legal expenses associated with defending your ownership if a covered issue arises. Beyond protection against title or identity fraud (such as a fraudulent sale or mortgage), title insurance may also provide coverage for other risks depending on the policy, including:

• Errors in public records or land registry documents;
• Undiscovered liens or encumbrances;
• Boundary or survey issues, including encroachments; and
• Unpaid property taxes or utility bills not identified at closing.

An Alternative Strategy: The HELOC

Another strategy that may offer some protection is maintaining a registered charge on your property, such as a mortgage or home equity line of credit (HELOC), even if the credit facility is not active. Since a lender has a secured interest registered on title, it becomes more difficult for fraudsters to transfer ownership or register additional financing without triggering lender scrutiny. In effect, the property is no longer “clean,” which may make it a less attractive target.

Of course, this approach is not a substitute for title insurance. While it may help deter certain types of fraud, it does not protect against issues such as historical title defects, administrative errors or undiscovered liens.

The Bottom Line

Title insurance can be purchased at the time of acquisition or added after the fact. For most residential properties, it is a one-time cost with no ongoing premiums, typically ranging from a few hundred dollars to around $1,000, depending on the property and coverage. Once purchased, coverage generally lasts for as long as you own the home.

Given the increasing sophistication of real estate fraud, it may be money well spent to consider title insurance as a relatively low-cost way to add meaningful financial and legal protection against low- probability but high-impact risks.

^{1. https://www.minicounsel.ca/scj/2025/560; “Title Insurance is a must for all homeowners.” Rob Aaron, April 20, 2026, Toronto Star, B3.}

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