Six months on from the launch of Land Registry’s property fraud line, 505 calls and emails have been received, giving members of the public access to invaluable help.
The property fraud line is one of a range of measures that Land Registry employs to help prevent or detect property fraud and safeguard the most valuable asset that people own. Between September 2009 and April 2013 we have stopped 136 fraudulent applications on properties worth an estimated £60 million.
Property fraud can happen in many ways. Fraudsters may attempt to acquire ownership of a property either by using a forged document to transfer it into their own name, or by impersonating the registered owner. Once they have raised money by mortgaging the property without the owner’s knowledge they disappear without making repayments, leaving the owner to deal with the consequence
Case study – The holiday cottage
Mr and Mrs P are the owners of a holiday cottage they rent out via a lettings agency. When visiting the cottage they found some correspondence relating to credit cards and other financial matters addressed to someone else using the cottage’s address. This person had rented it a few weeks previously. Also, the keys to the cottage were missing from the key safe at the property.
Mr and Mrs P contacted the police and Land Registry’s property fraud line. Although there was, as yet, no other suspicious activity concerning their Land Registry information, the fraud line team alerted Mr and Mrs P to the fact their contact address was out of date.
This would mean that if Land Registry needed to contact them – perhaps to tell them there was a mortgage in the process of being taken out on their property – they would not receive Land Registry’s letter. Mr and Mrs P were told how they could update their contact address, which they then did.
In the circumstances, Mr and Mrs P were also told about another Land Registry fraud protection option: the form RQ restriction. Any owner who is not living at, and does not intend to live at, a particular property can apply for one of these free of charge.
The RQ restriction is designed to help prevent forgery by requiring a conveyancer to certify they are satisfied that the person transferring or mortgaging the property is the same person as the owner. It provides an additional safeguard against forgery by operating as a deterrent. Mr and Mrs P applied for an RQ restriction and their property now has this additional protection in place.
Land Registry comment
Land Registry’s Property Fraud Unit spokesperson Alasdair Lewis said: “The frauds we have helped to prevent have saved those concerned a lot of grief and potentially money. We’re glad to see that the property fraud line has proved successful in preventing bad situations from getting worse.”
The property fraud line was launched on 5 February 2013 for owners to quickly alert Land Registry if they are concerned their property might be subject to a fraudulent sale or mortgage. It forms part of Land Registry’s ongoing fraud prevention and detection techniques to safeguard people’s registered properties and the integrity of the title register.
Callers can speak to specially trained staff for practical guidance about what to do next. The telephone number is 0300 006 7030 and the line is open from 8.30am to 5pm Monday to Friday.
The properties most vulnerable to property fraud are usually empty, tenanted or mortgage-free. Individuals at a higher risk of fraud include owners who do not live in the property because they live abroad, buy-to-let landlords, people in long-term hospital or residential care or where a relationship has broken down.
Land Registry’s top tips to help owners protect their property from fraudsters
- Make sure your property is registered. If you become an innocent victim of fraud and suffer a financial loss as a consequence, you may be compensated.
- Once registered, ensure the Land Registry has up-to-date contact details so it can reach you easily.
- You can have up to three addresses in the register – at least one email address (strongly recommended) or an address abroad can be used. The more information you provide, the more chance the Land Registry can of reach you if need be.
More property fraud advice is available from www.landregistry.gov.uk/propertyfraud
The Land Registry’s property fraud line is not a substitute for reporting allegations of fraud to Action Fraud on 0300 123 2040 – who will pass the report on to the police – or for taking independent legal advice.
Two publications are available free from Land Registry – Public Guide 17 – How to safeguard against property fraud and Public Guide 2 – Keeping your address for service up to date.
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