Read the story about the Luton man whose house was sold without his knowledge?
Property fraud happens more often than people think. HM Land Registry pay out millions in compensation for such frauds.
It is a real problem that everyone should be aware of and protect against.
Most common is when a fraudster steals the identity of a property owner and then impersonates them to to sell off the house.
Estate agents and solicitors have to do “due diligence” checks on the identity of their clients. Such checks involve checking the Land Registry title and the passport/drivers licences and proofs of addresses of the intended seller. However, if the fraudster has ID documents that match the proprietor’s name and address, then “due diligence” checks may not spot the fraud.
In such cases, the innocent buyer will be the new registered legal owner. The previous owner would have to go through the hassle of fraud investigations with the police, possible claims for compensation by Land Registry, and perhaps pursue a civil suit against the estate agent and solicitor against negligence.
I have some advice for you. Two simple steps that you can take to protect yourself.
1. Register a FREE property alert
You can register a free property alert at Land Registry for your properties. The property alert service will alert you if there is any activity on your title; such as someone trying to take out a mortgage against your house or trying to sell it.
To register your alert, follow this link
https://www.gov.uk/guidance/property-alert
2. Update your contact details at Land Registry
Many don’t realise that their land titles under the Proprietorship section names them with the said property address as a default address. Land Registry do not automatically know where you actually live or how to contact you.
Landlords with buy-to-let properties are at risk because most of their rental property titles have the rental property address as the landlord’s default address. That means any post regarding the title will go to the rental house.
Please, as a matter of urgency, update your contact details on your rental property titles using the COG1 form.
Please follow the guidance and download the form here: https://www.gov.uk/government/publications/updating-registered-owners-contact-address
Unregistered properties
If your land title is unregistered, you carry a higher risk, so it is possible to voluntarily register your title to protect yourself.
To register your title for the first time, follow this link for guidance:
https://www.gov.uk/registering-land-or-property-with-land-registry/register-for-the-first-time
If you need more advice on this, we could put you in touch with a conveyancing solicitor.
I hope you’ve found this blog useful.
Thank you for reading!
Ramona Hirschi
Managing Director of Belvoir Stoke, Property investor and non-practising Solicitor
