Humber/Ontario Real Estate Course 1 Exam Practice

To which authority can a land owner turn for compensation after fraudulent title transfer and the criminal goes missing?

1. Errors and Omissions Fund.

2. Land Titles Assurance Fund.

3. Title Fraud Recovery Fund.

4. Ownership Recovery Fund.

5. Real Estate Compensation Fund.

6. Registry Fund.

The correct answer is: Land Titles Assurance Fund.

The correct answer is the Land Titles Assurance Fund. This fund is specifically designed to provide compensation to individuals who suffer losses due to title fraud, particularly in situations where a fraudulent title transfer has occurred and the responsible party cannot be located. The Land Titles Assurance Fund operates under the principle of ensuring that property owners are protected from defects in title that arise from fraud or errors in the title registration process. Therefore, if a landowner experiences a loss resulting from such fraudulent activity, this fund serves as a safety net to provide the necessary compensation. Other funds mentioned, while they serve various purposes within the realm of real estate and property transactions, do not specifically address the issue of title fraud and recovery. Thus, in circumstances involving the fraudulent transfer of title, the Land Titles Assurance Fund is the appropriate authority to turn to for compensation.