LIF has been contacted recently with respect to a variation of identity fraud. In this case, it appears that the fraudster may have presented to a lawyer a false agreement of purchase and sale to obtain title to a property for the purpose of later mortgaging, refinancing or selling the property. The true owner of the property was a non-resident. The Law Society has also been made aware of attempted identity and value frauds.
There are many variations of value and identity fraud and real estate lawyers are at risk. What can you do? Carefully verify your client’s identity for real estate transactions and loan transactions. Be on the look-out for anything suspicious and trust your gut instincts.
For more resources, including tips to help keep you safe, see Real estate: Value, identity and other frauds, Private Lending (April 2019 Discipline Advisory), Real estate transactions – know your client primer (Summer 2021 Benchers’ Bulletin) and the Client ID & Verification web page. If a mortgage broker is involved, consider checking the BC Financial Services Authority’s records to see if they are currently registered under the Mortgage Brokers Act. If you have questions about these types of scams or verifying your client’s identity, contact Practice Advisor Barbara Buchanan, KC (bbuchanan@lsbc.org or 604.697.5816).