Preventing Property Title Fraud | Curtis Parkinson
Preventing Property Title Fraud

Preventing Property Title Fraud

The Fraud Advisory Panel, HM Land Registry and the Law Society of England and Wales have produced a new guide to help homeowners prevent property title fraud.

Unfortunately, property title fraud is real. Houses are sold and furnishings removed without the owner’s knowledge. Take the recently reported case involving Mr Hall, who drove home to Luton after being alerted by neighbours to find his house occupied by strangers in the throes of renovation work.

Most at Risk

As in Mr Hall’s case, the scam can happen where the fraudster steals a person’s identity. Fraudsters change details for registered property titles through the Land Registry, posing as the owner. Next, they use the property to apply for a new mortgage, or as it appears in Mr Hall’s case, sell the property to an unwitting buyer, disappearing with the proceeds.

Identity theft is only one part of the story; you are more at risk if you live overseas, or your property is:

HM Registry Claims / Compensation

Understandably, these scams cause distress and can devastating impact homeowners. In some cases, people even lose their homes. Indeed, during the last 2020/21 financial year, HM Land Registry received 22 claims for indemnity following alleged property title fraud, paying out £3.5 million compensation.

Four Steps

The new guide is designed to help those who own property or are thinking of buying one.

In summary, you must ensure:

  1. Your property is registered with HM Land Registry. Registration means that ownership can be checked and gives you extra legal protection. If your property is not already registered, you can apply for voluntary registration.
  2. Your registered details are up to date. If the Land Registry detects early signs of fraud, they can contact you.
  3. You sign up for HM Land Registry’s free online property alert service. This service will automatically let you know if someone tries to change your property registration details. It’s worth noting that you can register more than one correspondence address and email address to any property title.
  4. If you believe you are at risk of property fraud, you can apply for a restriction on your property’s title, or other bespoke conditions which add additional security checks for anyone dealing with the title. These additional conditions must be vetted and approved by HM Land Registry before they are implemented.

Our Advice

To download a copy of the guide, please click here. In the meantime, if you need any further information or advice on matters relating to buying or selling a home or Land Registry issues, please contact us. We’re here to help.

 

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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