The Ontario government has passed legislation to strengthen protection for homeowners against real estate fraud, but denies the problem is a growing "epidemic" as experts claimed this week. 

Under Bill 152, the Land Titles Act will be amended to declare any land titles obtained by fraudulent means — such as falsified mortgages, fraudulent sale or a counterfeit power of attorney — null and void.

The changes will also speed up financial assistance for victims of fraud, ensuring the title is returned and a decision on compensation is made within 90 days.

It also raises the maximum penalty for real estate fraud to $50,000 from $1,000.

Even as the government passed the bill through final reading, it sought to counter public perception about the extent of the problem.

At an international fraud investigators conference in Toronto earlier this week, a former RCMP investigator Chris Mathers called real estate fraud "an absolute epidemic, a huge problem in the developed countries, especially here in Canada."

"I think that's probably too strong a language," argued Government Services Minister Gerry Phillips. "I mean it's important and we have to deal with it. I wouldn't call it an epidemic by any means."

Case load steady

An average of 10 cases of title fraud are reported annually in the province, Phillips said, adding the number of cases has remained steady over the past few years.

Title fraud, one of two main types of real estate fraud, commonly involves criminals using stolen identities or forged documents to illegally obtain a registered owner's title. The fraud artist then gets a mortgage on the property and disappears with the money.

Mortgage fraud, which usually harms financial institutions, involves a crook acquiring property and then artificially increasing its value through a series of sales and resales involving the fraud artist and a conspirator. A mortgage is then obtained based on the artificially inflated price.