Mortgage lenders who lost interests to fraudulent registrations get a new compensation claim route under Land Titles

Plain-language summary · AI-assisted · not legal advice

A new section has been added to the regulation prescribing an additional category of claims that can be made against the Land Titles Assurance Fund. Specifically, a chargee (typically a mortgage lender or holder of a charge on land) who was wrongfully deprived of an estate or interest in land because a fraudulent instrument was registered can now bring a compensation claim under this prescribed category. To qualify, the claimant must not have already filed a rectification application under the relevant section of the Land Titles Act before the new rule came into force. Chargees who believe they have been harmed by a fraudulent registration should review whether they meet these criteria and consider seeking legal advice about filing a compensation claim against the Assurance Fund.

Who this affects: mortgage lenders and charge holders · land title insurers · real estate lawyers advising lenders · property owners affected by fraudulent registrations