Alberta Title Insurance

Property Fraud and Title Insurance: How Calgary Homeowners Can Protect Themselves

Property fraud is a growing concern for homeowners in Alberta and across Canada. It can happen quietly, without warning, and often is not discovered until significant financial and legal damage has already occurred. Fortunately, there are steps homeowners can take to reduce their risk—and title insurance is one of the most effective tools available.

What Is Property Fraud?

Property fraud most commonly begins with identity theft. A fraudster may obtain enough personal information to impersonate a property owner and use forged documents or false identification to deal with the property as if it were their own.

This can include:

• fraudulently transferring title to another party, or
• registering a mortgage against the property without the owner’s knowledge.

In many cases, the rightful owner only becomes aware of the fraud when they attempt to sell the property, receive correspondence from a lender, or are notified of a default on a mortgage they never agreed to.

Even when title is not transferred, a fraudulent mortgage alone can create serious legal and financial consequences. Untangling the situation often involves court proceedings, extensive documentation, and significant legal expense.

Why Property Fraud Is So Difficult to Resolve

Once fraud has occurred, reversing it is rarely simple. Proving identity theft and restoring title or discharging a fraudulent mortgage can be time-consuming, stressful, and costly. While the legal system does provide remedies, the process can take months (or longer) and outcomes are not always predictable. This is why prevention and risk management are so important.

How Title Insurance Helps

Title insurance is one of the most effective protections available to homeowners. While it cannot prevent fraud from occurring, it provides coverage for financial losses and legal costs associated with title fraud, including fraudulent transfers and mortgages registered without the owner’s consent.

If fraud occurs, title insurance can help cover:

• legal fees to resolve title issues,
• losses related to fraudulent mortgages, and
• costs associated with restoring ownership.

This can significantly reduce the financial burden on homeowners during what is often a highly stressful situation.

Additional Preventative Steps Homeowners Can Take

In addition to title insurance, homeowners should consider:

• periodically checking title through the Alberta Land Titles Office to confirm no unauthorized registrations have been made, and
• monitoring their credit report for unfamiliar loans or credit inquiries.

Early detection can sometimes limit the scope of damage.

How Much Does Title Insurance Cost?

Unlike most insurance products, title insurance is a one-time premium, typically paid at the time of purchase. In Alberta, the cost generally ranges from approximately $200 to $500, depending on the value of the property and the insurer.

If you did not purchase title insurance when you bought your home, it may still be possible to obtain coverage through an existing homeowner’s policy. This can provide important protection even years after purchase.

Final Thoughts

Property fraud can have serious and lasting consequences, but homeowners are not without options. Taking proactive steps—such as monitoring title and credit activity and obtaining title insurance—can significantly reduce both financial exposure and stress if fraud occurs.

Whether you are purchasing a new property or already own your home, title insurance remains a practical and cost-effective way to protect your investment. If you have questions about title insurance or how it applies to your situation, speaking with a real estate lawyer can help you understand your options and ensure you are properly protected.

Sabrina Avery
April 4, 2025