In Ontario's Land Titles system, a fraudster poses as the registered owner and in 2025 registers a forged transfer to an innocent purchaser who pays full value. What is the effect on title?
Correct Answer
C) The owner keeps title, because registering a fraudulent instrument does not transfer it
Land Titles Act s. 78(4) normally deems a registered instrument effective to transfer the land, but s. 78(4.1) says that rule does not apply to a fraudulent instrument registered on or after October 19, 2006. A transfer by someone posing as the registered owner is a fraudulent instrument under s. 1, so the true owner keeps title and the register can be rectified. The purchaser's recourse is against the fraudster, and Assurance Fund claims depend on meeting s. 57's conditions.
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