Learning Centre Lawyer Portal Careers Contact Us

Law Society of Alberta

  • Who We Are
    • The Future of Professional Development

      Includes the creation of a Professional Development Profile and the development of a new CPD planning tool.
      • About Us
      • Executive Leadership Team
      • Board & Committees
        • Board Directory
        • Board Meetings
        • Member Meetings
        • Committees
        • Other Bodies
      • Key Initiatives
        • Equity, Diversity and Inclusion Initiatives
        • Innovation Sandbox
        • Indigenous Initiatives
        • The Future of Professional Development
      • Engagement with Public and Profession
      • Affiliations
      • Annual & Financial Reports
      • Strategic Plan
      • Awards & Scholarships
        • Distinguished Service Awards
        • Recognition of Service
        • Scholarships
  • For the Public
    • Lost Wills Listing

      A public webpage containing a list of outstanding will requests is now available online.
      • Find a Lawyer
      • Complaints
      • Finding Files
      • Lost Wills
      • Public Resources
      • Financial Claims
      • Notices
      • Careers
  • Lawyers & Students
    • Become a Principal

      Find out details about the new principal training requirement and the process of becoming a principal.
      • Become a Lawyer
      • Become a Principal
      • Membership Services
      • Forms & Certificates
      • Making a Payment to the Law Society
      • Trust Accounting & Safety
        • Responsible Lawyers
        • Filing Requirements
        • Anti-Money Laundering Model Rules
      • Professional Development
      • Fraud & Loss Prevention
      • Practice Advisors
      • Practice Management Consultations
      • Approved Legal Services Providers
      • Complaints
      • Equity Ombudsperson
      • Alberta Lawyers Indemnity Association
        • Report a Claim
        • Group Policy
        • ALIAlerts
        • ALIAdvisories
  • Resource Centre
    • New Resource:

      Business Continuity and Succession Plan Guide and Checklist
      • Learning Centre
      • Student Resources
        • Articling Placement Program
      • Public Resources
      • Disaster Planning and Recovery
      • Upcoming Events
      • Media Room
      • eBulletins
      • Latest News
      • Lawyer Programs
        • Mentor Connect
        • Mentor Express
        • Table Talks
        • AdvisorLink
        • Locum Connect
        • Practice Management Consultations
        • SoloNet
        • Assist
      • Key Resources
        • Legal Practice
        • Continuous Improvement
        • Cultural Competence & Equity, Diversity and Inclusion
        • Lawyer-Client Relationships
        • Practice Management
        • Professional Conduct
        • Professional Contributions
        • Truth and Reconciliation
        • Well-Being
  • Regulation
    • Act, Code & Rules

      The Law Society of Alberta derives its authority from the Legal Profession Act and sets out standards through its Rules and Code of Conduct.
      • Act, Code & Rules
      • Adjudication
        • About the Tribunal Office
        • Hearing Schedule
        • Decisions & Outcomes
        • Complaint Dismissal Appeals
        • Adjudicator Directory
        • Book of Authorities
      • Notices
        • Custodianship
        • Disbarment
        • Reinstatement
        • Resignation
        • Suspension
      • Unauthorized Practice of Law
        • Information Concerning the Unauthorized Practice of Law
  • Find a Lawyer
Resource Centre
  • Learning Centre
  • Lawyer Programs
    • Mentor Connect
    • Mentor Express
      • Mentor Express FAQ
    • Table Talks
    • Mentor Moments
    • AdvisorLink
      • AdvisorLink Online Request
    • Locum Connect
      • Locum Listing
      • Locum Opportunity Listing
    • SoloNet
  • Key Resources
    • Legal Practice
    • Continuous Improvement
    • Cultural Competence & Equity, Diversity and Inclusion
    • Lawyer-Client Relationships
    • Practice Management
      • Retirement Guide
        • Making the Decision to Retire
        • Your Status with the Law Society
        • The Process of Winding Up
        • Working Through the Tasks
      • Business Continuity and Succession Plan Guide and Checklist
        • Planning Considerations
        • Your Plan – Checklist
        • Office Procedure Manual
        • Additional Planning Resources & Templates
      • Practice Management Assessment Tool
    • Professional Conduct
    • Professional Contributions
    • Truth and Reconciliation
    • Well-Being
  • Disaster Planning and Recovery
  • Student Resources
  • Public Resources
  • Upcoming Events
  • Media Room
  • eBulletins
  • Latest from the Law Society
  • Home
  • Resource Centre
  • Key Resources
  • Practice Management
  • Top 5 Ways to Avoid Falling into the Mortgage Fraud Trap
Top 5 Ways to Avoid Falling into the Mortgage Fraud Trap

Given the recent economic climate, fraudsters may be on the lookout for ways to target unsuspecting lawyers. Here are five ways to avoid falling into a mortgage fraud trap.

  1. Know your client. It’s important to realize just because the client found you on a recommendation from a realtor friend, doesn’t mean you can relax and trust them fully. Do your homework and stick to Client Identification and Verification rules. Ask yourself:
    • Do they have appropriate ID?
    • How much do they know about the property in question?
    • Do they seem anxious to get the deal done quickly?
    • Do they give last minute instructions to complete the transaction by way of power of attorney?Take the time to get to know your client, ask questions, discover their background, understand why they are entering into the transaction, and meet personally with clients whenever possible.
  2. Make sure the paperwork checks out. To make sure everything is in order, ask the following questions:
    • Are there irregularities in the execution of documents such as documents taken out of the office for execution by the borrower and witnessed by a party to the transaction?
    • Are there multiple transactions with similar characteristics such as the same realtor, appraiser and mortgage representative?
    • Do the Lender’s Instructions have different details than you have – such as purchase price, owner occupancy, down payment?
    • Does the Statement of Adjustments match the real estate purchase contract?
    • Do title searches show recent transfers of the property or a pattern of mortgages being registered and discharged shortly thereafter?Use independent source documents and cross-check facts.
  3. Establish (and stick to) solid accounting practices. Be sure to implement and follow the rules relating to the receipt and payment of trust funds. Don’t sign blank cheques, never sign a cheque with no payee or amount stated and regularly review your bank statements and online accounts. Talk to your bank about the best way to verify instruments of concern prior to deposit and be very careful about disclosing details related to your trust account (such as the circumstances in which you allow others to make deposits directly to your account).
  4. Get your staff on board. Form clear guidelines for your staff on how to deal with files and circumstances that raise suspicions. Discuss various fraud scenarios and develop procedures for addressing each. Make sure to exercise care in hiring practices (i.e. background checks, references), segregate duties relating to handling of money where possible, and be sure to properly supervise and train staff.
  5. Trust your gut. If it doesn’t sound right, investigate further.
  • Is the information you are provided consistent?
  • Are the closing funds in the form of a cheque or bank draft that indicates that funds may be coming from a source other than the purchaser?
  • Are there other irregularities in the real estate purchase contract – for example, does the witness’ signature for both the buyer and seller look a little too similar?
  • Are there indications the mortgage comprises greater than 95% of the purchase price?
  • Has the property’s value increased rapidly over a short period of time?
  • Is the client offering to pay for higher than normal legal fees?
  • Are there inordinate delays from the seller’s lawyer?

Be sure to be very cautious when being contacted directly via the internet. Do a Google check; investigate reverse telephone directories and independently cross-check information.

In addition to the above tips, be sure to keep up with legal and regulatory requirements, such as the Rules of the Law Society of Alberta, and the Code of Professional Conduct, noting any changes to these Rules.

Written by: Jocelyn Frazer, Practice Advisor

Printed from https://www.lawsociety.ab.ca on March 24, 2023 at 4:17:42 PM
Law Society of Alberta ©2023 Law Society of Alberta.
  • Latest
  • Contact Us
  • Privacy
  • Accessibility
  • Sitemap
  • Careers
©2023 Law Society of Alberta.
  • Who We Are
    • Back
    • About Us
    • Executive Leadership Team
    • Board & Committees
      • Back
      • Board Directory
      • Board Meetings
      • Member Meetings
      • Committees
      • Other Bodies
    • Key Initiatives
      • Back
      • Equity, Diversity and Inclusion Initiatives
      • Innovation Sandbox
      • Indigenous Initiatives
      • The Future of Professional Development
    • Engagement with Public and Profession
    • Affiliations
    • Annual & Financial Reports
    • Strategic Plan
    • Awards & Scholarships
      • Back
      • Distinguished Service Awards
      • Recognition of Service
      • Scholarships
  • For the Public
    • Back
    • Find a Lawyer
    • Complaints
    • Finding Files
    • Lost Wills
    • Public Resources
    • Financial Claims
    • Notices
    • Careers
  • Lawyers & Students
    • Back
    • Become a Lawyer
    • Become a Principal
    • Membership Services
    • Forms & Certificates
    • Making a Payment to the Law Society
    • Trust Accounting & Safety
      • Back
      • Responsible Lawyers
      • Filing Requirements
      • Anti-Money Laundering Model Rules
    • Professional Development
    • Fraud & Loss Prevention
    • Practice Advisors
    • Practice Management Consultations
    • Approved Legal Services Providers
    • Complaints
    • Equity Ombudsperson
    • Alberta Lawyers Indemnity Association
      • Back
      • Report a Claim
      • Group Policy
      • ALIAlerts
      • ALIAdvisories
  • Resource Centre
    • Back
    • Learning Centre
    • Student Resources
      • Back
      • Articling Placement Program
    • Public Resources
    • Disaster Planning and Recovery
    • Upcoming Events
    • Media Room
    • eBulletins
    • Latest News
    • Lawyer Programs
      • Back
      • Mentor Connect
      • Mentor Express
      • Table Talks
      • AdvisorLink
      • Locum Connect
      • Practice Management Consultations
      • SoloNet
      • Assist
    • Key Resources
      • Back
      • Legal Practice
      • Continuous Improvement
      • Cultural Competence & Equity, Diversity and Inclusion
      • Lawyer-Client Relationships
      • Practice Management
      • Professional Conduct
      • Professional Contributions
      • Truth and Reconciliation
      • Well-Being
  • Regulation
    • Back
    • Act, Code & Rules
    • Adjudication
      • Back
      • About the Tribunal Office
      • Hearing Schedule
      • Decisions & Outcomes
      • Complaint Dismissal Appeals
      • Adjudicator Directory
      • Book of Authorities
    • Notices
      • Back
      • Custodianship
      • Disbarment
      • Reinstatement
      • Resignation
      • Suspension
    • Unauthorized Practice of Law
      • Back
      • Information Concerning the Unauthorized Practice of Law
  • Find a Lawyer
  • Lawyer Portal
  • Contact
Office of the Chief Executive Officer & Executive Director
Fill in the form below to get in touch with the Office of the Chief Executive Officer & Executive Director.
  • Drop files here or
    Max. file size: 20 MB.
      Text, PDF, MSOffice, and Images only. Max size 20 MB.

    Email: Governance

    Fill in the form below to get in touch with Governance.
    • This field is for validation purposes and should be left unchanged.

    Email: Indigenous Mentorship Program

    Fill in the form below to get in touch with the Indigenous Mentorship Program.
    • Drop files here or
      Max. file size: 20 MB.
        Text, PDF, MSOffice, and Images only. Max size 20 MB.

      Email: Mentorship

      Fill in the form below to get in touch with the Mentorship team.
      • Max. file size: 20 MB.

      Email: Equity, Diversity and Inclusion Counsel

      Fill in the form below to get in touch with the Equity, Diversity and Inclusion Counsel.
      • Drop files here or
        Max. file size: 20 MB.
          Text, PDF, MSOffice, and Images only. Max size 20 MB.

        Email: Indigenous Initiatives

        Fill in the form below to get in touch with Indigenous Initiatives.
        • Drop files here or
          Max. file size: 20 MB.
            Text, PDF, MSOffice, and Images only. Max size 20 MB.
          Innovation Sandbox Contact Form
          Fill in the form below to get in touch with the Innovation Sandbox team.
          • Drop files here or
            Max. file size: 20 MB.
              Text, PDF, MSOffice, and Images only. Max size 20 MB.

            Email: Unauthorized Practice of Law

            Fill in the form below to get in touch with the Unauthorized Practice of Law team.
            • Drop files here or
              Max. file size: 20 MB.
                Text, PDF, MSOffice, and Images only. Max size 20 MB.
              • This field is for validation purposes and should be left unchanged.

              Email: Legal Technology

              Fill in the form below to get in touch with Legal Technology.
              • Drop files here or
                Max. file size: 20 MB.
                  Text, PDF, MSOffice, and Images only. Max size 20 MB.

                Email: Governance Meetings

                Fill in the form below to get in touch with Governance.
                • This field is for validation purposes and should be left unchanged.

                Email: Practice Advisors

                Fill in the form below to get in touch with the Practice Advisors
                • 1500 character maximum
                • Drop files here or
                  Max. file size: 20 MB.
                    Text, PDF, MSOffice, and Images only. Max size 20 MB.
                  • Inquiries which will receive a response within the same or following business day are:


                    Same-day real estate closings
                    Same-day court matters
                    Public, client and lawyer safety concerns

                    Other matters will be reviewed by the assigned Practice Advisor and prioritized accordingly.

                    The response time for non-urgent inquiries will be 3 to 5 business days.

                  Email: Education

                  Fill in the form below to get in touch with the Education department.
                  • Drop files here or
                    Max. file size: 20 MB.
                      Text, PDF, MSOffice, and Images only. Max size 20 MB.

                    Email: AdvisorLink

                    Fill in the form below to get in touch with AdvisorLink
                    • 1. AdvisorLink (operated by the Office of the Practice Advisors) and the Advisors accept no liability whatsoever arising from assistance given to lawyers or to any persons claiming through or under them.
                      2. Lawyers are obligated to independently verify statements of law, procedure or fact made to them by the Advisor, before relying on them.
                      3. AdvisorLink must not be used as a substitute for the lawyers’ own thorough research and analysis or for the lawyers’ own professional judgment.
                    • This field is for validation purposes and should be left unchanged.

                    Email: Accounting

                    Fill in the form below to get in touch with Accounting
                    • Drop files here or
                      Max. file size: 20 MB.
                        Text, PDF, MSOffice, and Images only. Max size 20 MB.
                      • This field is for validation purposes and should be left unchanged.

                      Email: Customer Service

                      Fill in the form below to get in touch.
                      • Drop files here or
                        Max. file size: 20 MB.
                          Text, PDF, MSOffice, and Images only. Max size 20 MB.

                        Email: General Feedback

                        Fill in the form below to get in touch with General Feedback
                        • Drop files here or
                          Max. file size: 20 MB.
                            Text, PDF, MSOffice, and Images only. Max size 20 MB.

                          Email: Communications and Media Relations

                          Fill in the form below to get in touch with Communications and Media Relations.
                          • Drop files here or
                            Max. file size: 20 MB.
                              Text, PDF, MSOffice, and Images only. Max size 20 MB.
                            • This field is for validation purposes and should be left unchanged.

                            Email: Membership Services

                            Fill in the form below to get in touch with Membership Services
                            • Drop files here or
                              Max. file size: 20 MB.
                                Text, PDF, MSOffice, and Images only. Max size 20 MB.

                              Email: Manager, Membership Services

                              Fill in the form below to get in touch with Tina McKay
                              • Drop files here or
                                Max. file size: 20 MB.
                                  Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                Email: Elizabeth Aspinall

                                Fill in the form below to get in touch with Elizabeth Aspinall
                                • Drop files here or
                                  Max. file size: 20 MB.
                                    Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                  Email: Jesse Mackenzie

                                  Fill in the form below to get in touch with Jesse Mackenzie
                                  • Drop files here or
                                    Max. file size: 20 MB.
                                      Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                    Email: Allan Guty

                                    Fill in the form below to get in touch with Allan Guty
                                    • Drop files here or
                                      Max. file size: 20 MB.
                                        Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                      Email: SoloNet

                                      Fill in the form below to get in touch with SoloNet
                                      • Drop files here or
                                        Max. file size: 20 MB.
                                          Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                        Email: Practice Management

                                        • Drop files here or
                                          Max. file size: 20 MB.
                                            Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                          Email: Nancy Bains

                                          Fill in the form below to get in touch with Nancy Bains
                                          • Drop files here or
                                            Max. file size: 20 MB.
                                              Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                            Email: Inform Trust Safety

                                            Fill in the form below to get in touch with Inform Trust Safety
                                            • Drop files here or
                                              Max. file size: 20 MB.
                                                Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                              Email: Trust Safety

                                              Fill in the form below to get in touch with Trust Safety
                                              • Drop files here or
                                                Max. file size: 20 MB.
                                                  Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                Email: Information Management

                                                Fill in the form below to get in touch with Information Management
                                                • Drop files here or
                                                  Max. file size: 20 MB.
                                                    Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                  Email: Election

                                                  Fill in the form below to get in touch with Election
                                                  • Drop files here or
                                                    Max. file size: 20 MB.
                                                      Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                    Email: Justicia Project

                                                    Fill in the form below to get in touch with Justicia Project
                                                    • Drop files here or
                                                      Max. file size: 20 MB.
                                                        Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                      Email: Locum Connect

                                                      Fill in the form below to get in touch with Locum Connect
                                                      • Drop files here or
                                                        Max. file size: 20 MB.
                                                          Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                        Email: Mentor Connect

                                                        Fill in the form below to get in touch with Mentor Connect
                                                        • Drop files here or
                                                          Max. file size: 20 MB.
                                                            Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                          Email: Mentor Express

                                                          Fill in the form below to get in touch with Mentor Express
                                                          • Drop files here or
                                                            Max. file size: 20 MB.
                                                              Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                            Email: Indigenous Law Student Summer Employment Program

                                                            Fill in the form below to get in touch with Indigenous Law Student Summer Employment Program
                                                            • Drop files here or
                                                              Max. file size: 20 MB.
                                                                Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                              Email: ALIA

                                                              Fill in the form below to get in touch with ALIA
                                                              • Drop files here or
                                                                Max. file size: 20 MB.
                                                                  Text, PDF, MSOffice, and Images only. Max size 20 MB.
                                                                • This field is for validation purposes and should be left unchanged.

                                                                Email: ALIAlert fraud alerts

                                                                Fill in the form below to get in touch with ALIAlert fraud alerts
                                                                • Drop files here or
                                                                  Max. file size: 20 MB.
                                                                    Text, PDF, MSOffice, and Images only. Max size 20 MB.
                                                                  • This field is for validation purposes and should be left unchanged.

                                                                  Email: Equity Ombudsperson

                                                                  Fill in the form below to get in touch with the Equity Ombudsperson.
                                                                  • Drop files here or
                                                                    Max. file size: 20 MB.
                                                                      Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                                    Email: Tribunal Office

                                                                    Fill in the form below to get in touch with Tribunal Office
                                                                    • Drop files here or
                                                                      Max. file size: 20 MB.
                                                                        Text, PDF, MSOffice, and Images only. Max size 20 MB.

                                                                      Email: Custodianship

                                                                      Fill in the form below to get in touch with Custodianship
                                                                      • Drop files here or
                                                                        Max. file size: 20 MB.
                                                                          Text, PDF, MSOffice, and Images only. Max size 20 MB.