Restore the Deed Act, 2006 Tascona, Joseph N. — Bill 136 (38th Parliament, 2nd Session)

Bill 136, 38-2

Ontario — Bills

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Bill 136, Restore the Deed Act, 2006

Tascona, Joseph N.

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[38] Bill 136 Original (PDF)

Bill 136 2006

An Act to amend the

Land Titles Act

Note: This Act amends the Land Titles Act . For the legislative history of the Act, see Public Statutes - Detailed Legislative History on www.e-Laws.gov.on.ca.

Preamble

Whereas it is in the public interest that the land titles registration system be reformed to reduce the impact of title fraud on Ontario's home and business owners;

And

whereas it is desirable to revise and extend protection to those who rely on the land titles registration system in Ontario by implementing measures to prevent fraud and that reduce the damage of fraud when it occurs;

And

whereas to achieve these goals it is necessary to ensure that the Land Titles Assurance Fund is a fund of first resort for victims of fraud and that its procedures are improved so that claims for compensation from the Fund are handled with

due speed and efficiency;

Therefore, Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. The Land Titles Act is amended by adding the following Part:

PART I.1

MEASURES TO PREVENT FRAUD

Certain persons may request changes

2.1

(1) No person may apply for the registration of a document or instrument on the register unless the person is,

(

a) a member of the Law Society of Upper Canada;

(

b) a broker or salesperson registered under the Real Estate and Business Brokers Act, 2002 ;

(

c) a mortgage broker registered under the Mortgage Brokers Act ;

(

d) an Ontario land surveyor;

(

f) a person authorized by the council of a municipality by by-law made under subsection 31 (1) to apply to the land registrar to have land within the municipality registered; or

(

g) a financial institution within the meaning of the Office of the Superintendent of Financial Institutions Act (Canada).

Same

(2) Where a provision of this Act allows a person to apply for registration of a document or instrument on the register, the provision shall be read consistently with subsection (1), namely as requiring that person to make the

application through a person described in subsection (1).

Same

(3) The land registrar shall not accept an application for registration of a document or instrument on the register unless the application is made through a person described in subsection (1).

Notifications

2.2 When the land registrar registers a new owner, a new charge, encumbrance or discharge in respect of land, he or she shall send a notification to,

(

a) the former registered owner, in the case of registration of a new owner; and

(

b) the current registered owner, in the case of registration of a new charge or encumbrance.

Registrar's powers

2.3

(1) In addition to any other power he or she has under this Act, the land registrar may of his or her own accord and without affidavit,

(

a) refuse to register someone or something on the register if, in his or her opinion, the refusal may prevent fraud; or

(

b) register a caution to prevent dealing with any registered land if, in his or her opinion, the caution may prevent fraud.

Same, reversal

(2) The land registrar may reverse an action taken under subsection (1) if he or she is satisfied that the refusal or caution is not necessary to prevent fraud.

Hearing

(3) The land registrar may hold a hearing in respect of an action taken under subsection (1) before reversing the action and

section 10 applies to the hearing.

Appeal

(4) If the land registrar does not reverse an action taken under subsection (1) or initiate a hearing within 60 days of taking the action, any person who is adversely affected may appeal the registrar's action to the court,

(

a) within 30 days after the end of the 60-day period, in the case of a refusal to register someone or something on the register; and

(

b) at any time after the end of the 60-day period, in the case of a caution that prevents dealing with registered land.

Personal identification numbers

2.4

(1) The land registrar shall establish and maintain a secure system that allows for personal identification numbers to be assigned to,

(

a) registered owners of land; and

(

b) registered mortgagees.

Automatic assignment of number

(2) On and after the day this

section comes into force, every person who becomes a registered owner of land or a registered mortgagee shall be assigned a personal identification number that identifies the person as the registered

owner or mortgagee, as the case may be.

Application for number

(3) Every person who was the registered owner of land or registered mortgagee on the day this

section came into force shall be assigned a personal identification number that identifies the person as the registered owner or mortgagee,

as the case may be, if the person applies for one to the land registrar.

Owner may register caution

2.5

(1) The registered owner of land may apply for the registration of a caution to prevent dealing with the registered land.

Effect of caution

(2) After a caution has been registered, the land registrar shall not register anyone or anything on the register with respect to the land without the consent of the registered owner.

Owner may remove caution

(3) The registered owner of land may apply for the removal of a caution at any time.

Owner must use PIN

(4) If the registered owner of land has had a personal identification number assigned to him or her under

section 2.4, the land registrar shall require the registered owner to use that number when,

(

a) indicating consent for the purposes of subsection (2); or

(

b) applying for the removal of a caution under subsection (3).

Use of PIN

2.6 If a registered owner of land or mortgagee has had a personal identification number assigned to him or her under

section 2.4, the land registrar may require that person to use that that number in any

circumstances under this Act if, in the land registrar's opinion, requiring that person to use the personal identification number may prevent fraud.

2. The Act is amended by adding the following section:

Administration of Fund

Board to administer

d'assurance".

Composition

(2) The Lieutenant Governor in Council shall appoint,

(

a) no fewer than five members to the Board;

(

b) one member of the Board as chair and one or more as vice-chairs who may act in the absence of the chair;

(

c) individuals who, in the opinion of the Lieutenant Governor in Council, will represent the views of,

(

i) consumer protection organizations,

(ii) the real estate industry, and

(iii) the law enforcement community.

Role of chair

(3) The chair shall have general supervision and direction over the conduct of the affairs of the Board, and shall arrange sittings of the Board and assign members to conduct hearings as circumstances require.

Role of board

(4) The Board is responsible for determining appropriate payment out of the Land Titles Assurance Fund, if any, on application by any person under this Act.

Same

(5) Where an application is made under this Act for payment out of the Assurance Fund, the chair of the Board shall refer the application to one or more members of the Board for determination.

Same

(6) Where the circumstances require a hearing, the chair shall refer the matter to a panel of no fewer than three members of the Board.

Section 56 of the Act is amended by striking out "Director of Titles" wherever it appears and substituting in each case "Assurance Fund Board".

4. (1) Subsection 57 (4) of the Act is repealed and the following substituted:

Liability of Fund to compensate person wrongfully deprived

(4) A person wrongfully deprived of land or of some estate or interest therein is entitled to have the compensation paid out of the Assurance Fund if the application is made within six years from the time of having been so deprived

or, in the case of a person under the disability of minority, mental incompetency or unsoundness of mind, within six years from the date at which the disability ceased.

Clarification

(4.1) For greater certainty, a person entitled to have compensation paid out of the Assurance Fund need not take any steps to recover just compensation under subsection (1) before applying for compensation from the Fund.

(2) Subsection 57 (6) of the Act is amended by striking out "Director of Titles" and substituting "Assurance Fund Board".

(3) Subsections 57 (7) to (10) of the Act are repealed and the following substituted:

Hearing

(7) Except where the member or members who consider the application determine that the claim be paid in full, the chair of the Assurance Fund Board shall order a hearing be held, and the claimant and such other persons as the chair

may specify are parties to the proceeding.

How compensation to be determined

(8) The liability of the Assurance Fund for compensation and the amount of compensation shall be determined by the panel of members of the Assurance Fund Board assigned to hear the application.

Amount of compensation

(8.1) A person may be compensated from the Assurance Fund for,

(

a) the value of the land or estate or interest therein of which the person was wrongfully deprived; and

(

b) reasonable legal costs associated with making a claim for compensation out of the Fund, including costs associated with a hearing under subsection (7).

Claimant to be notified

(9) The panel of the Assurance Fund Board shall serve notice of its determination under subsection (8) by registered mail on the claimant.

Appeal

(10) Where the panel of the Assurance Fund Board determines that compensation should be paid but that the claim not be paid in full, the claimant, if intending to appeal, shall, within a period of 30 days after the date of mailing of

the notice under subsection (9), serve on the chair of the Board notice of intention to appeal under

section 26, and the chair shall not certify under subsection (11) the amount to the Treasurer of Ontario if a notice of appeal is received within

that period or until after the expiry of that period if no notice of appeal is received.

(4) Subsection 57 (11) of the Act is amended by,

(

a) striking out "Director of Titles shall certify" and substituting "chair of the Assurance Fund Board shall certify"; and

(

b) striking out "Director of Titles' certificate" and substituting "chair's certificate".

(5) Subsection 57 (12) of the Act is amended by,

(

a) striking out "name of the Director of Titles" and substituting "name of the chair of the Assurance Fund Board"; and

(

b) striking out "Director of Titles' certificate" and substituting "chair's certificate".

5. Subsection 70 (2) of the Act is repealed and the following substituted:

Registration

(2) An original power of attorney may be registered in the prescribed manner if,

(

a) it is filed personally by the donor of the power of attorney and he or she provides proof satisfactory to the land registrar of his or her identity;

(

b) it is filed by a person other than the donor and is accompanied by other evidence satisfactory to the land registrar that it is authentic, such as an affidavit from a witness to the power of attorney.

No copies

(2.1) For greater certainty, a copy of a power of attorney, whether notarized, certified or otherwise guaranteed to be authentic, may not be registered on and after the day this subsection comes into force.

Section 78 of the Act is amended by adding the following subsection:

Clarification - fraud

(4.1) For greater certainty, subsection (4) does not operate to validate an instrument that, if unregistered, would be fraudulent and void.

Section 156 of the Act is amended by adding the following subsections:

Same - false information

(2) Every person is guilty of an offence if the person,

(

a) falsifies, assists in falsifying or induces or counsels a

Document details

Collection	Ontario — Bills
Citation	Bill 136, 38-2
Type	bill
Volume / chapter	p38 s2 bill 136 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	e46ea355e81a042dade868ea6c49e6fb2f0739cf

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