The perils of mortgage fraud affect both innocent lenders and property owners. The recent Ontario Court of Appeal decision in Susan Lawrence v. Maple Trust Company and Thomas Wright considered who bears the loss after a person’s home is fraudulently transferred and then mortgaged to a lender. Both were innocent of the fraud. The Court held that the mortgage should be set aside. The case highlights the need for both lenders and owners in all jurisdictions to vigilantly guard against mortgage fraud.

type Commercial Real Estate Law Alert - Winter 2007 - Mortgage Fraud - You Could Be an Innocent Victim