Defrauded Homeowner Succeeds in Court of Appeal

Defrauded Homeowner Succeeds in Court of Appeal

By Brian Madigan LL.B.

(Ontario Real Estate Source)

Cases of fraud seem somewhat commonplace, and courts must decide who should bear the loss. Almost always there will be more than one victim.

The real culprits are long since gone. They have fled the country, often without a trace, other than of course, the messes they leave behind.


Have a look at Lawrence v. Wright(2007) Ontario Court of Appeal another interesting case:

· An imposter posed as Ms Lawrence, the owner of a residence in Toronto.

· A forged agreement of purchase and sale, showing a purchase price of $318,000, was presented to a lawyer retained to handle the sale.

· Another imposter played the role of purchaser, using the name Thomas Wright.

· Mr. Wright applied for and obtained mortgage financing from Maple Trust Company.

· The funds were advanced and a mortgage placed on the property in favour of Maple Trust.

· Ms Lawrence knew nothing about it until months later when she discovered the mortgage on her title.

· The Court of Appeal held that Maple Trust, as the party that dealt with the fraudster, had an opportunity to avoid the fraud if it had been diligent.

· Ms Lawrence had no such opportunity.

· The Court decided that the loss should be borne by Maple Trust.

Comment

This is another one of those fraud cases. However, it was the first one to reach the Ontario Court of Appeal. The homeowner was protected because she had no involvement with the fraud artists whatsoever. Had she been duped into signing something by a friend or colleague then the courts would not have had any sympathy.

As a sidenote, the buyer's name was an interesting choice. There is a real Thomas Wright, and he is the President of the Real Estate Council of Ontario, the body which regulates the real estate profession. It just shows how flagrant and obnoxious some of these people can be.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com