Fraudsters are constantly looking for new ways to try and deceive people, devising increasingly complex schemes to deprive you of your money. The value of property, from its current worth to its role as an asset when securing loans to its investment potential, means houses are often a popular target.
Types of fraud
There are several ways that property fraudsters operate. They could obtain false documents and attempt to use them to claim the property as their own, then sell it. Another option is to pretend to be a conveyancer so they can appropriate funds from a property transaction by diverting them to their own account. In other cases, they create fake investment schemes. Never invest in property without doing your research.
Risk factors
Properties are more at risk when left empty for extended periods of time, especially if the owner is overseas. Rental properties and properties that are mortgage-free are popular targets, as are those that are not properly registered with the Land Registry. Property fraud is one possible consequence if you are the victim of identity theft.
Mitigate the risk
Some of these risk factors can be mitigated. For instance, find your solicitor or conveyancer through an official body such as the Law Society. Read all information carefully, especially their contact details. Communications by phone or post are more reliable than e-mail. For maximum security, only deliver your bank details to the office in person.
It only costs £3 to check your property’s full details on the Land Registry. If the information is incorrect, which is particularly likely for properties with a last mortgage or sale before 1990, you must update it swiftly. The Land Registry also offers an alert service to warn you if someone else is taking an interest in your property or trying to make changes to its official status.
A restriction such as the Form LL restriction adds an extra layer of protection to your property. It means that the Land Registry cannot register a mortgage or sale until your identity has been certified, usually by a solicitor such as https://www.parachutelaw.co.uk/form-ll-land-registry-restriction. This is free to property owners unless they live in the house, in which case there is a fee.
Anyone can fall victim to a scam, but by taking the time to mitigate the risk, you will make it much harder for fraudsters to take advantage of your property.
