Elevated Risk of Real Estate Identity Fraud – Enhanced Vigilance Required
The Society is issuing this notice to draw members’ attention to two recent advisories regarding a marked increase in sophisticated real estate identity fraud, and to remind members of their obligations regarding client identification.
LTSA Notice (August 4, 2026)
The Land Title and Survey Authority of British Columbia (LTSA) has reported recent mortgage fraud attempts where scammers used falsified identification to impersonate legitimate property owners and take out new mortgages against an owner’s property. LTSA notes this activity appears to be focused on the South Asian community, particularly properties in Surrey, Delta, New Westminster and Burnaby that have clear title or an older, low-balance mortgage. LTSA specifically flags that professionals should be wary of clients who express urgency or provide unusual instructions, such as listing a property below market value, taking on a high-interest private mortgage against clear title, or avoiding traditional marketing methods.
Read the full notice here.
Lawyers Indemnity Fund Notice (July 23, 2026)
The Lawyers Indemnity Fund (LIF) has published a detailed account of a recent case in which a fraudster posing as a corporate director sought a $950,000 loan from a private lender secured against a newly-constructed duplex with clear title. The lawyer only uncovered the fraud after her instincts prompted her to verify the borrower’s stated accountant, who turned out not to exist. LIF highlights recurring red flags, including transactions that must be completed in a rush, that involve vacant or unoccupied properties, and that involve a private rather than institutional lender, as well as identification red flags such as photographs in a passport and driver’s licence appearing to be of two different people, or an ID showing a smiling photo, which is not permitted on genuine government identification. LIF recommends that even where identity is verified in person, practitioners consider a secondary digital or technology-assisted verification step.
Read the full notice here.
Reminder to Members
Notaries are reminded of their obligation to complete client identity verification in accordance with the requirements of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Society’s governing rules. Members should:
- Treat urgency, unusual instructions, and clear-title or vacant properties as risk indicators warranting closer scrutiny;
- Carefully cross-check identification documents for inconsistencies, such as mismatched photos, signatures, or expiry dates;
- Consider secondary verification measures where any doubt exists, even after an in-person meeting; and
- Report suspected fraud promptly to LTSA, FINTRAC, the Society, and the applicable police jurisdiction.