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ARTICLE · 20 NOVEMBER 2024

Market Intelligence Thought Leadership Award Winner

'Freezing' Title: Protecting Against Unauthorized Transfers And Mortgages

Title fraud can befall homeowners as well as owners of commercial or investment property, such as where a scam or rogue director purports to deal in land without bona fide authorization of the full board.

CanadaReal Estate and Construction

Bad actors can effect a transfer or mortgage of land without the knowledge or authorization of the registered owner.

Title fraud can befall homeowners as well as owners of commercial or investment property, such as where a scam or rogue director purports to deal in land without bona fide authorization of the full board. For example, in 1264777 B.C. Ltd. v Gill, 2023 BCSC 131 (appeal dismissed in 2023 BCCA 410), the owner presented evidence that fraudsters unlawfully accessed and made changes to the public corporate records of a corporate landowner, which enabled the property to become encumbered by a fraudulent mortgage.

This article outlines two possible strategies for an owner to defend against a threat of an unauthorized transfer or mortgage of land in B.C. by prohibiting their registration: lodging a caveat, and withdrawing a certificate of duplicate indefeasible title.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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