Defrauded Homeowner Gets Property Back
Here's another reblog via Brian Madigan, a Toronto broker with law background. ... and again relating to a mortgage fraud.
Due diligence is often a common theme in court rulings.
Defrauded Homeowner Gets Property Back
By Brian Madigan LL.B.
(Ontario Real Estate Source)
There really is no end to the different kinds of real estate fraud.
In Reviczky v. Meleknia (2007) Ontario Superior Court of Justice restored the property to the original owner.
Here is a summary of the facts:· The fraudster, using a fictitious Power of Attorney, purported to sell property owned by Mr. Reviczky to Mr. Meleknia.
· Mr. Meleknia financed the purchase through the HSBC Bank Canada and the bank registered a mortgage on title.
· The real owner of the property, the purchaser and the bank were all victims of the fraud.
· The person who presented the Power of Attorney to the bank was not known to the bank and the bank took no steps to confirm the validity of that document.
· Mr. Justice John Macdonald held that the bank's mortgage was not a valid charge as against the true owner of the property and ordered it deleted from title.
Comment
The bank must take some steps tp protect itself. If another innocent party is careless and foolhardy but nevertheless goes along with the scheme, then the bank is protected.
However, in circumstances where everyone is innocent except the fraudster, then the bank is on its own, and it cannot look to other innocent victims for recompense.
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
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