The body that regulates Ontario’s 100,000 real estate agents and brokers is urging them to be more vigilant when verifying the identity of a client, amid a wave of fraudulent home sales and mortgages in the Toronto area.
The Real Estate Council of Ontario (RECO) memo, sent Tuesday afternoon, reminds members they’re required by law to verify the parties in a transaction are who they say.
“You play a crucial role in protecting the interests of your clients and the integrity of real estate transactions,” the memo reads.
“Your duties … also include continuously being vigilant for anything that seems suspicious or inconsistent.”
The memo comes just weeks after CBC News published a series of reports that found dozens of homes in the Toronto area have had either mortgages placed on them without owners’ consent or sold without their knowledge. CBC News is aware of at least six properties that were fraudulently sold.
In those cases, the owners were often out of the country and had rented their homes before individuals posing as the owners put them up for sale. Police are investigating.
RECO registrar Joseph Richer said in a statement the alert was issued because the alleged frauds are “causing tremendous hardship to victims.”
While RECO’s move is being welcomed by some, others question why the memo is only being released now, and how agents who don’t follow the rules are being held to account.
One of the memo’s recommendations is for agents to confirm an individual looks like the photo on their identification and that “the age seems reasonable.”
“I think that is directly related to our case,” said Melissa Walsh.
Her 93-year-old great-uncle nearly had his home sold from under him a year ago — when alleged fraudsters posed as renters to get access to his home in Toronto’s Beach neighbourhood, and others posed as him to list it for sale.
Multiple offers were placed on the home, but Walsh and her family realized it was being sold and managed to stop it.
The home of Melissa Walsh’s 93-year-old great-uncle was nearly sold without his knowledge. Alleged fraudsters used fake IDs to get inside the home, then someone else posed as her great-uncle to list the property for sale. (Submitted by Melissa Walsh)
“It’s good to see that there’s more information out there and that people are being advised to be vigilant. But again — it just seems like it’s a little too late,” said Walsh.
She questions why the practices listed in the memo may not have been followed by Realtors in the past, and why more aren’t being held accountable for not properly verifying IDs.
“This is not a one-off situation, it’s been happening for a while,” said Walsh.
Other steps
RECO is also urging its members to verify the height and eye colour on a driver’s license, to make sure they match the person renting or selling a home, and using online tools such as Ontario’s Driver’s License Check system to see the status of that licence.
The memo also urges realtors to monitor details on paperwork closely.
“Be vigilant for any inconsistencies, such as spelling errors when the buyer or seller writes their name or email address, or other odd or unusual mistakes,” the memo reads.
Walsh and her family discovered that the home — seen here, staged for sale with different furniture — was listed online. (MLS)
In two of the cases CBC News reported on — one where a home was sold, one where a sale was averted at the 11th hour — there were spelling mistakes on the sales paperwork, and fake ID was allegedly used by tenants who rented the homes and by the people posing as homeowners.
False credit scores and job references were also allegedly submitted to the Realtors who rented the homes before they were targeted for sale.
RECO also suggests asking the seller questions — such as how old the furnace or roof is — that a true homeowner would actually know, and to have them provide invoices for work done and paperwork for property or income tax. Other suggested questions are when the home was purchased and who the real estate agent was — details that can be checked online.
It also notes there are legal consequences for those who don’t properly verify an ID, including a maximum fine of $50,000 and suspension or revocation of a Realtor’s registration.
The CEO of the Ontario Real Estate Association says many of the recommended practices are typically followed.
“It was a very helpful bulletin … a reminder of best practices in this area,” Tim Hudak said of the memo.
Mortgage and title fraud cases are on the rise in recent years, according to insurance companies. (Evan Mitsui/CBC)
“We all need to work together to make sure [title fraud] doesn’t happen — whether that’s the realtors, the bankers, the lawyers, the mortgage title fraud companies and law enforcement. We got to shut this down.”
Provincial legislation
New measures could be on the horizon. Ontario’s Ministry of Public and Business Service Delivery said last month its updated code of ethics for Realtors, under the provincial Real Estate and Business Brokers Act, will come into force on April 1.
No details have been provided on what specifically that will entail, only that the code will include a specific provision related to fraud.
The head of one of four title insurance companies in Canada says he’d like to see multi-factor ID verification become the norm in all real estate transactions. That would require a combination of photo ID verification, a credit report search and checks on the phone number provided to make sure it isn’t a burner cell phone.
“Fraudulent identification is too easily obtained and cannot be the only means of verifying ID in a real estate transaction when parties are signing in person,” said John Rider, senior vice president of Chicago Title Insurance Company in Canada.
“While this statement [from RECO] is potentially helpful in that it will encourage all RECO regulated parties to be more diligent in their review of identification, it will not be sufficient to stop mortgage and title frauds in Ontario,” said Rider.
Tim Hudak, CEO of the Ontario Real Estate Association, says he welcomes RECO’s recommendations. (Supplied)
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
