57 (1) A person wrongfully deprived of land or of some estate or interest therein, by reason of the land being brought under this Act or by reason of some other person being registered as owner through fraud or by reason of any misdescription, omission or other error in a certificate of ownership or charge, or in an entry on the register, is entitled to recover what is just, by way of compensation or damages, from the person on whose application the erroneous registration was made or who acquired the title through the fraud or error.  R.S.O. 1990, c. L.5, s. 57 (1). Where no compensation (2) A person is not entitled to compensation from The Land Titles Assurance Fund in respect of an interest in land existing at the time the land is brought under this Act unless that interest is registered against the title to the land under the Registry Act or notice of it is given to the land registrar before the first registration under this Act of a person as owner of the land.  R.S.O. 1990, c. L.5, s. 57 (2). Purchaser or mortgagee in good faith for value not liable (3) Subsection (1) does not render liable any purchaser or mortgagee in good faith for valuable consideration by reason of the vendor or mortgagor having been registered as owner through fraud or error or having derived title from or through a person registered as owner through fraud or error, whether the fraud or error consists in a wrong description of the property or otherwise.  R.S.O. 1990, c. L.5, s. 57 (3). Compensation from Fund (4) A person is entitled to compensation from the Assurance Fund if, (a)  the person is wrongfully deprived of land or of some estate or interest in land by reason of, (i)  the land being brought under this Act, (ii)  some other person being registered as owner through fraud, or (iii)  any misdescription, omission or other error in a certificate of ownership or charge or in an entry on the register; (b)  the person has demonstrated the requisite due diligence as specified by the Director if the person is wrongfully deprived of land or of some estate or interest in land by reason of some other person being registered as owner through fraud; (c)  the person is unable under subsection (1) or otherwise to recover just compensation for the person’s loss; and (d)  the person makes an application for compensation within the time period specified in subsection (5.1).  2006, c. 34, s. 15 (2). Earlier payment (4.1) A person who is a member of a prescribed class of persons is entitled to compensation from the Assurance Fund if, (a)  one of the following conditions is met: (i)  the person is wrongfully deprived of land or of some estate or interest in land or has not received land or some estate or interest in land by reason of the registration of an instrument described in clause (13) (b) and the Director of Titles or a court, under that clause, has directed that the registration of the instrument be deleted from the register, (ii)  the person is wrongfully deprived of land or of some estate or interest in land or has not received land or some estate or interest in land by reason of a rectification of the register made under clause (13) (a) or (c); (b)  the person has demonstrated the requisite due diligence as specified by the Director with respect to the instrument that is the subject of the rectification; and (c)  the person makes an application for compensation within the time period specified in subsection (5.1).  2006, c. 34, s. 15 (2). Same (4.2) A person who is a member of a prescribed class of persons is entitled to compensation from the Assurance Fund if, (a)  the Director of Titles or a court, under clause (13) (b), has directed that the registration of an instrument described in that clause be deleted from the register; (b)  the person has suffered a loss as a result of the deletion described in clause (a); and (c)  the person makes an application for compensation within the time period specified in subsection (5.1).  2006, c. 34, s. 15 (2). Reliance on automated index (5) A person who suffers damage because of an error in recording an instrument affecting land designated under Part II of the
Land Registration Reform Act in the parcel register is entitled to compensation from the Assurance Fund if the person makes an application for compensation within the time period specified in subsection (5.1).  2006, c. 34, s. 15 (2). Time for application (5.1) A person claiming to be entitled to the payment of compensation under subsection (4), (4.1) or (5) shall make an application within six years from the time of having suffered the loss described in the applicable subsection or, in the case of a minor or a person who is incapable as defined in the Substitute Decisions Act, 1992, within six years from the date on which the minority or incapacity ceased.  2006, c. 34, s. 15 (2); 2009, c. 33, Sched. 2, s. 41 (4). Application for compensation from Assurance Fund (6) A person claiming to be entitled to payment of compensation out of The Land Titles Assurance Fund shall apply to the Director of Titles.  R.S.O. 1990, c. L.5, s. 57 (6). Hearing (7) Except if he or she determines the claim be paid in full, the Director of Titles may hold a hearing, and the claimant and the other persons that the Director of Titles specifies are parties to the proceeding before the Director.  2006, c. 34, s. 15 (3). How compensation to be determined (8) The liability of the Assurance Fund for compensation and the amount of compensation shall be determined by the Director of Titles, and the costs of the proceeding are in the discretion of the Director of Titles.  R.S.O. 1990, c. L.5, s. 57 (8). Claimant to be notified (9) The Director of Titles shall serve notice of his or her determination under subsection (8) by mail on the claimant.  R.S.O. 1990, c. L.5, s. 57 (9); 2009, c. 33, Sched. 17, s. 5 (14). Appeal (10) Where the Director of Titles 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 Director of Titles notice of intention to appeal under section 26, and the Director of Titles shall not certify under subsection (11) the amount to the Minister of Finance 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.  R.S.O. 1990, c. L.5, s. 57 (10); 1998, c. 18, Sched. E, s. 125; 2009, c. 33, Sched. 17, s. 5 (13). Payment out of Assurance Fund (11) Subject to subsection (10), the Director of Titles shall certify to the Minister of Finance any amount found to be payable under this section, and, upon receiving the certificate, that Minister shall pay the amount to the person entitled to it out of the Consolidated Revenue Fund, and the sums so paid out shall be credited as payments on account of the stock in the hands of the Accountant of the Superior Court of Justice, and the amount of the stock shall be reduced accordingly.  2009, c. 33, Sched. 17, s. 5 (15). Recovery of compensation paid in error (11.1) If, after compensation is paid out of the Assurance Fund, the Director of Titles determines that any part of the compensation was paid in error for any reason, including on the basis of any misrepresentation or any lack of information available at the time of making the payment, the Director of Titles may commence an action to recover the amount of that part from the person who received it.  2006, c. 34, s. 15 (4). Subrogation (12) If any amount is paid out of the Assurance Fund to an applicant in respect of a loss, the Director of Titles is subrogated to the right of the applicant and the applicant’s heirs, executors, successors and assigns to recover compensation or damages from any person in respect of the loss, and the certificate of the Director of Titles of the payment out of the Assurance Fund is sufficient proof of the payment.  2006, c. 34, s. 15 (5). Agreements (12.1) For the purposes of subsection (12), the Director of Titles may enter into agreements with any person or body that is liable to make any payment to a person who has received compensation from the Assurance Fund if the liability arises out of conduct that gave rise to the payment made from the Assurance Fund.  2006, c. 34, s. 15 (5). Rectification of register (13) Subject to subsection (14), the Director of Titles may, in the first instance or after a reference to a court, or a court may direct the rectification of the register if, (a)  a registered instrument would be absolutely void if unregistered; (b)  the Director of Titles or a court, as the case may be, is satisfied, on the basis of evidence that the Director of Titles specifies or the court orders, that a fraudulent instrument has been registered on or after October 19, 2006; or (c)  the effect of the error, if not rectified, would be to deprive a person of land of which the person is legally in possession or legally in receipt of the rents and profits.  2006, c. 34, s. 15 (6). Notice to Director of Titles (14) A court shall not direct the rectification of the register under clause (13) (b) unless the applicant in the proceeding before the court has given notice of the proceeding to the Director of Titles and the Director of Titles is a party to the proceeding.  2006, c. 34, s. 15 (6). Caution in case of fraud (15) If it appears to the Director of Titles that a registered instrument may be fraudulent, the Director of Titles may of his or her own accord and without affidavit enter a caution to prevent dealing with the registered land.  2006, c. 34, s. 15 (6). Hearing (16) If the Director of Titles has entered a caution under subsection (15), the Director of Titles may hold a hearing before making any rectification of the register under subsection (13) and subsections 10 (4), (5) and (6) apply to the hearing.  2006, c. 34, s. 15 (6). Power to summon witnesses (17) For the purposes of the hearing, the Director of Titles may exercise the powers described in subsections 20 (1), (2) and (3) with necessary modifications and the reference in subsection 20 (1) to an applicant is deemed to be a reference to any party to the hearing.  2006, c. 34, s. 15 (6). Same (18) Subsections 20 (4) to (7) apply to the hearing with necessary modifications.  2006, c. 34, s. 15 (6). Assistance (19) The Director of Titles may, in the course of the hearing, require a party to the hearing to produce a document or record and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce information in any form, and the person shall produce the document or record or provide the assistance.  2006, c. 34, s. 15 (6). Section Amendments with date in force (d/m/y) 1998, c. 18, Sched. E, s. 125 - 18/12/1998 2006, c. 19, Sched. C, s. 1 (3) - 22/06/2006; 2006, c. 34, s. 15 (2-6)
- 20/12/2006 2009, c. 33, Sched. 2, s. 41 (4) - 15/12/2009; 2009, c. 33, Sched. 17, s. 5 (13-15) - 15/12/2009 2012, c. 8, Sched. 28, s. 37 (1-8) - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2022