The Fraud Advisory Panel, HM Land Registry and the Law Society of England and Wales has released new guidance to help homeowners avoid property title fraud.
This type of fraud attempts to steal ownership of a home and can have a devastating impact on homeowners – with some people even losing their homes in rare cases.
These scams commonly occur where a fraudster changes the registered details of a building through the Land Registry to pose as its owner.
They can then use the property to apply for a new mortgage or sell the home to an unfortunate buyer before evading capture by disappearing with the proceeds.
During the 2020/21 financial year, HM Land Registry said it had received 22 claims for indemnity following alleged property title fraud – paying out £3.5 million worth of compensation.
Although cases are uncommon, those with vacant properties may be extra vulnerable, including properties where a person has recently passed away.
Fraudsters also target high-value, mortgage-free properties to maximise the amount they can borrow against a home.
The guide gives several points for properties buyer and sellers to avoid this kind of fraud, including:
- Ensuring properties are registered with HM Land Registry so that there is an official record that can be checked to confirm ownership. This gives extra legal protections, including access to compensation.
- Regularly updating registered details in case HM Land Registry need to send you official letters or notices, which may indicate signs of fraud.
- Register with the HM Land Registry online property alert service to get immediate notification if someone tries to change the register for your property.
- Applying for a restriction on your title so a conveyancer must formally certify any sale. This is particularly good for the most ‘at risk’ groups.
“Property title fraud can have devastating consequences for victims, and we urge people to follow the steps set out in the guidance to help protect their homes,” said, Stephanie Boyce, president of the Law Society of England and Wales.
“Solicitors are alert to this and other cruel schemes, such as payment diversion fraud, which can cost victims hundreds of thousands of pounds and even see their house stolen by the fraudsters.”
Julie Jenkins, head of counter fraud at HM Land Registry, added: “While fraudulent transactions are rare our state guarantee protects homeowners in the event they are victims of registered title fraud.
“Our specialist counter fraud teams focus on detection, prevention and education, working with professional conveyancers, such as solicitors, to lower the risk of property fraud occurring.
“Remaining vigilant is key to combatting fraud which is why we encourage all homeowners to sign up to alerts via our free property alert and follow the advice outlined in this guide.”
The partnerships full guidance on property title fraud is available here.
Victims of property title fraud are also encouraged to report it immediately by going to www.actionfraud.police.uk or emailing reportafraud@landregistry.gov.uk.