The Cost of Overlooking Property Boundaries – A Lesson in Due Diligence

A recent Toronto Star article shed light on a case of mortgage fraud, where a daughter used her parents' home as collateral for a loan without their knowledge. This incident brings a broader issue to light—homeowners often assume they have full control over their property, only to discover hidden risks after it’s too late. While title insurance is frequently cited as a protective measure, this case reveals deeper vulnerabilities that go beyond fraud protection. It speaks to the importance of understanding your property boundaries, legal encumbrances, and potential risks long before a crisis occurs.

The Case of a Stolen Home – More Than Just Mortgage Fraud

In this case, the homeowners were blindsided when they found out that their daughter had leveraged their house to secure financing. The bank had no reason to suspect fraud as the paperwork seemed legitimate, and without prior red flags, the transaction went through. However, once the fraud was discovered, the process to unwind the damage involved a costly process including lawyers, damages, and negotiations to restore ownership rights, correct title records, and potentially litigate disputes arising from the fraudulent transaction.

This raises a crucial question: How can homeowners truly safeguard their property? More importantly, what other risks might be hiding in plain sight?

The Hidden Threats in Property Ownership

While fraud is a major concern, there are other legal and financial risks that property owners often overlook. At Protect Your Boundaries (PYB), we’ve seen homeowners face significant consequences due to a lack of awareness about their property’s legal standing. Here are some real-world examples:

1. Encroachments & Unauthorized Use of Land

• Imagine buying a home only to find out that part of your backyard is actually your neighbour’s land. This is a common issue when property boundaries are not clearly defined through a Surveyor’s Real Property Report (SRPR).
• At PYB, we have seen cases where a homeowner built a shed that was later deemed to be sitting on municipal land. The structure had to be removed at the homeowner’s expense.

2. Easements That Restrict Property Use

• Many homeowners are unaware of utility easements or city-held access rights that may prevent them from making changes to their land.
• In a notable case a homeowner wanted to expand their driveway but discovered an easement agreement that prevented them from doing so.

3. Zoning Restrictions & Legal Roadblocks

• If a property is zoned for a certain type of use, violating these restrictions—even unknowingly—can lead to costly penalties.
• PYB has worked with homeowners who unknowingly purchased properties with zoning limitations that made their renovation plans impossible.

How Protect Your Boundaries Can Help

This case of mortgage fraud is an extreme example of how property ownership can be compromised, but the reality is that many homeowners don’t know the full history of their land. These products from PYB can provide a level of insight that title insurance alone cannot offer:

• Land Survey Plans: Survey plans can assist in property boundary verification, so you are in the know of where your land begins and ends.
• BoundaryPLUS Property Reports: Confirm title, identify existing easements, shared driveways, and other property encumbrances.
• Parcel Registers – Provides the legal description, ownership history, mortgages, liens, easements, and other title-related transactions recorded against a property.

A Proactive Approach to Property Protection

The best time to protect yourself from property risks is before problems arise. Whether it’s fraudulent mortgage activity, unexpected encroachments, or restrictive easements, homeowners should always be proactive in protecting their investment. A small investment in land surveys and property reports can prevent thousands of dollars in legal fees and stress down the road.

At Protect Your Boundaries, we specialize in helping homeowners truly own their property—not just in name, but with full knowledge of what they own, what they can do with it, and how to protect it.

Explore our land survey database today and take the first step toward true property security.