The Real Estate Council of Ontario issued a notice this week amid reports those fraud claims are on the rise, with one insurance investigator saying his firm was looking into several Ontario cases.
The council, which regulates real estate professionals, says valuable real estate can be a “prime target” for “sophisticated criminals”.
It states registrants who fail to verify a client’s identity could face a disciplinary suspension and fines of up to $50,000.
The council tells professionals to verify a client’s ID and be “vigilant” for any inconsistencies, such as errors in names, email addresses, or other unusual mistakes and, fraudulent ID cards.
Other red flags include a homeowner looking for a quick sale or an unusually low sale price for no valid reason. When the deal is too good to be true, the deal is too good to be true.
One insurance investigator reported last month, his firm had received 30 Ontario claims of fraudsters impersonating homeowners and tenants.
He says six of those were instances of “total title fraud”, where con artists pose as homeowners to list properties for sale.
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