Property fraud is relatively uncommon, but when it does occur the financial and emotional consequences can be severe. In its simplest form, criminals steal or misuse someone’s identity to impersonate the legal owner of a property before attempting to sell it, transfer ownership or secure a mortgage against it without the owner’s knowledge.
HM Land Registry continues to work with law enforcement to prevent this type of fraud and has stopped numerous fraudulent property transactions in recent years.
While any property can potentially be targeted, fraudsters often look for homes that are:
- mortgage-free;
- empty or unoccupied;
- rented out;
- owned by people living overseas; or
- owned by someone whose identity has been compromised.
These properties may be less likely to have suspicious activity noticed quickly, making them more attractive to criminals.
How property fraud happens
Property fraud has become more sophisticated than simply stealing paper title deeds. Today, criminals are more likely to obtain personal information through identity theft, forged documents or cybercrime before attempting to impersonate the owner during a property sale or mortgage application.
They may also target landlords by posing as legitimate tenants or buyers, or attempt to exploit properties that remain vacant for extended periods, such as those awaiting sale or going through probate.
How to protect yourself
Although no measure can completely eliminate the risk of fraud, there are several sensible precautions property owners can take.
- Ensure your contact details held by HM Land Registry are up to date.
- Be cautious about sharing personal information and protect yourself against identity theft.
- Carry out appropriate referencing and identity checks on prospective tenants.
- Keep vacant properties secure and inspect them regularly.
- Seek advice from a qualified solicitor or regulated professional before signing documents relating to your property.
Register for HM Land Registry’s free Property Alert service
One of the simplest ways to help protect your property is to register for HM Land Registry’s free Property Alert service.
The service emails you whenever certain activity is recorded against a registered property you are monitoring, such as applications relating to a sale, mortgage or other changes to the register.
Consider adding a restriction to your title
Owners of properties that are particularly vulnerable to fraud – such as mortgage-free homes, rental properties or properties left empty – may also wish to consider applying for a restriction on the property’s title.
A restriction can require a conveyancer or solicitor to certify that any application to sell or mortgage the property has been made by the genuine owner before HM Land Registry registers the transaction. Whether a restriction is appropriate will depend on your individual circumstances. You can find out more here on the Gov.UK website.
What should you do if you suspect fraud?
If you receive a Property Alert you do not recognise, or believe someone is attempting to fraudulently sell or mortgage your property, act quickly. HM Land Registry recommends contacting the solicitor or lender named in the alert where appropriate, seeking independent legal advice and reporting suspected property fraud to its specialist fraud team. You should also report fraud to the national reporting service, Action Fraud.
While no preventative measure can eliminate the risk entirely, taking sensible precautions and making use of HM Land Registry’s free anti-fraud tools may help property owners identify suspicious activity at an early stage.
