Member News & Information
Mortgage Fraud – Lenders Beware
Macdonald Sager Manis LLP
Randy Bassi, Student-At-Law
February 13, 2015
In the recent decision of CIBC Mortgages Inc. v. Computershare Trust Co. of Canada, Justice Murray of the Ontario Superior Court of Justice decided a priority dispute between three innocent mortgagees, all of whom were the victims of a fraud committed by the mortgagors. In reaching his decision, Justice Murray not only interpreted the relevant sections of the Land Titles Act relating to fraudulent instruments, but also relied upon the decision of Lawrence v Maple Trust Company, 84 O.R. (3d) 94 (“Lawrence”), and the theory of deferred indefeasibility (the “Theory”). Consequently, the decision will undoubtedly have a significant impact in the area of real estate law as it relates to mortgage fraud and the responsibilities of mortgagees to be cognizant of red flags of fraud when lending money to mortgagors.
Christine Jonathan acted for the successful lender, Computershare Trust Co. of Canada, please click on the below link;
CIBC Mortgages Inc. v. Computershare Trust Co. of Canada, 2015 ONSC 543 (CanLII), http://www.canlii.org/en/on/onsc/doc/2015/2015onsc543/2015onsc543.pdf