Beware of property fraud

Monday, 11 May 2009 00:00

Recent news reports have highlighted the huge scale of mortgage fraud perpetrated by identity thieves following the abolition of paper title deeds and the increase in people lodging applications with the Land Registry in person, rather than through a solicitor.

In some cases properties have even been sold without the owner's knowledge. Apparently the situations when the title to your property is most at risk are when you are abroad and when your property is empty or let out. It can also be at risk following a relationship break down or if you go into care or die.

The Land Registry has introduced safeguards to try and minimise the risk of a fraud being successful. These include identity checks on the parties to a transaction but these may not be foolproof. Ironically the only parties to benefit from getting rid of paper deeds were the banks and building societies who saved huge sums on document storage facilities.

Fortunately there are practical things you can do to protect your property title. If it is not registered, now is the time to ask your solicitor to register it for you as Land Registry charges are going up in July. If it is registered, make sure it is registered under your current name and address. You could also consider applying for a note on your title to the effect than that no transaction is to be registered unless your solicitor has confirmed the person signing the deed is the actual owner.

Taking the above steps should help reduce the risk of your property being stolen by fraudsters. If you would like further advice on protecting your property please contact our property team.