Another type of fraud which occurs from time to time actually involves forging an owner’s signature on a transfer of land, which is then registered at the Land Titles Office, transferring ownership of the property to the forger or his agent, without the owner’s knowledge.

In one case of which I am aware, the owners, who actually intended to sell their property, did not utilize the services of a realtor or a lawyer, and after making an agreement to sell their property to an

“investor,” who agreed to assume their existing mortgage, provided an executed transfer of land to the investor, for registration at the Land Titles Office.

The “investor,” prior to registration of the transfer, altered the name of the transferee on the transfer document, forged the initials of the vendors “authorizing” the amendment, and then registered the title in the name of a numbered company, which he had indicated as transferee.

The “investor,” who had no intention of making payments on the mortgage, rented the property out, and collected rent for six to eight months, while the mortgage went into default and foreclosure proceedings were commenced.

As the mortgage was CMHC insured, and as the value of the property was less than what was owing to the mortgagee with accrued costs and interest, a Deficiency Judgement was entered, not only against the present owner (a numbered company with no assets) but also against the previous owners as well.

The previous owners only found out what had transpired when collection proceedings on the Deficiency Judgement that had been obtained against them were commenced.

Although fortunately in that instance, the matter was eventually resolved and the “investor,” was convicted and sentenced to a six month jail term, anyone contemplating a direct sale to an investor with a low down payment would be well advised to be very cautious. NHS




Michael C. Dunkley is a Calgary lawyer who has practiced extensively in the area of Real Estate Law for more than 21 years. He may be reached at 291-0006.