How to protect yourself from property fraud

The Homeowners Alliance reported in 2019 that from 2005 to 2019, homeowners made 678 property fraud claims to the Land Registry. The average cost of those property scams was valued at £107,669 per homeowner – which meant that overall pay-outs amounted to a staggering £73.3 million.

Scammers are quick to exploit periods of economic uncertainty; therefore, it is vital that you are aware of the signs early. 

Identity theft and impersonation

Criminals may impersonate any individual involved in a property transaction, including owners, buyers, borrowers, conveyancers or even lenders. 

Buyers

A fraudster may use a false ID to pretend to be a buyer and make an offer. They may then withdraw before exchange. Allowing them to use personal information they have learnt during the process to commit title fraud on the property owner. They may also continue the transaction and steal money raised from the lender. 

Lenders 

Criminals may also submit forged discharges (a formal recognition that a mortgage has been paid off). Be aware that the lender should always be one that is regulated by the financial conduct authority. 

Sellers

Criminals may attempt to mortgage or sell your property by impersonating an owner. They could do this by using false or stolen IDs. They often try to target: 

• Owners living overseas
• Owners who have died
• Owners who have built up equity in their property
• Absent owners – especially landlords
• Sole owners – especially of unmortgaged properties.
• Owners who are in care homes
• People who have previously had their ID stolen before.
• Property owned by a company

How you can prevent property fraud

Suppose you believe you could fall victim to property fraud from the abovementioned methods. In that case, it is imperative that you ask a solicitor for advice on how you can best protect your property. A solicitor or conveyancer could help protect your property by entering a restriction on your behalf with the Land Register. Doing this would mean no one can sell your property unless a solicitor has confirmed and checked the seller's identity to ensure your safety. 

If you do not live at the property, you can fill in a request for a restriction for owners not living at the property through the government website - provided you own the property privately. There is no fee to do this. 

It is paramount to ensure your property is registered so that you can be compensated if you are a victim of fraud and suffer financial loss. Although most properties in England and Wales are registered, those most likely to be unregistered are properties that have not changed hands or been mortgaged since 1990.

The Land Registry also offers a property alert service that you can join. While this does not stop fraudulent dealings, it does guarantee that you will be informed of any suspicious activity regarding your property. For instance, if you have subscribed to property alerts and someone obtains a title search on your home, The Land Registry will notify you by email. Once notified, you can start an investigation immediately and implement additional protective measures for your property. It is strongly advised that you immediately seek legal advice in this situation. You can get alerts for up to 10 properties; there is no fee for this. This simple process can help prevent you or someone you know from being the victim of property fraud. 

It is also essential that your contact details are up to date with the Land Registry so that they can quickly contact you if they should need to. 

If you are a victim of property fraud

It is essential that you contact the HM Land Registry fraud team immediately. You should also report the incident to Action Fraud and seek legal advice. 

Contact our property solicitors 

Our solicitors can advise on all aspects surrounding property law and ensure that you understand your rights and obligations under housing legislation. 

If you have any questions about property law matters, please do not hesitate to contact our team.

SO Legal has experienced solicitors and conveyancers in Brighton, Eastbourne, Hastings, London, Uckfield, and Ulverston. We also work with clients all over the UK.