International Law

Mortgage Fraud in Ontario Updated

Good summary of the recent mortgage fraud, by Bob Aaron, in BarEx's News & Resources

He points out:

In every transaction, those documents are now going to be scrutinized, not only by the lawyer for the seller using the document, but by the lawyer for the buyer and the buyer's bank. If a seller cannot provide satisfactory evidence that the power of attorney is valid and enforceable, a buyer and his or her bank could conceivably refuse to close the transaction.

Just exactly how this will happen - especially where the giver of the power of attorney is at the time mentally or physically incompetent, or overseas, or simply unavailable -remains to be seen.

The vast majority of powers of attorney used in real estate transactions are legitimate documents, but from now on it will be tougher to use them to buy, sell or mortgage real estate in Ontario.

One of the many nasty externalities as a result of privacy fraud.

Full post as published by Misleading Advertising Law on January 09, 2008 (boomark / email).