There are many things to be aware of when entering an Ontario real estate transaction. Real estate law violations and fraud are concerns everyone should be cautious of in situations where such large amounts of money are being exchanged. In Toronto, police have arrested four people in connection with mortgage frauds involving high-end homes. The frauds allegedly netted $17 million.
The purportedly fraudulent transactions involved two homes in the Bridle Path area of Toronto, along with several others in similar high-end areas. The scheme is said to have started before 2013. Police say the accused fraudsters would convince private lenders to give people or companies large amounts of money by pretending they owned large, vacant homes. They would then take the money but never register the mortgages. Police allege that false documents were used in these dealings.
The four people accused of fraud are currently out on bail. Like many real estate law violations, this issue played out in civil court for awhile. It was brought into the criminal arena after a five-year police investigation following a civil lawsuit.
Toronto continues to be one of the hottest real estate markets in Canada. With so much activity, people and lenders alike may become susceptible to fraud and other real estate law violations. This can include everything from large operations like this one to individual homebuyers lying about finances to secure a larger mortgage. Those who are involved in the Ontario real estate market in any way should have a lawyer on hand to double-check claims and legal documents.
Source: The Globe and Mail, "Toronto Police lay charges in Bridle Path mortgage-fraud scheme", Jeff Gray, March 6, 2018