The very nature of buying or selling a property requires the sharing of a large amount of personal and financial information.
Sadly, identity theft is on the rise. Fraudsters are using the transactions of buildings and land for illegal and money laundering purposes. This can pose a risk as to how safe the personal information we share really is.
So, what is out there to protect us and what can we do ourselves to better safeguard our personal information?
What regulations protect us from property fraud?
Estate agents, conveyancers and lenders all have a legal duty under HMRC’s regulatory requirements and Money Laundering Regulation to confirm who we are and where the money is coming from when purchasing a property.
This involves them verifying the identity and address of new and existing clients as well as carrying out anti-money-laundering checks (AML).
Failure to do so can lead to hefty fines or even imprisonment so correct procedures to screen clients must be followed.
Having an awareness of the regulations and why they have been put in place helps consumers to be aware of what to expect and be confident that the companies you are dealing with are working to the correct standards.
What documents do I need to provide for property-related identity checks?
The regulatory requirements mean you are required to provide a proof of ID and proof of funds using certain documents.
Proof of ID requires that you show an original document such as a current passport or a full UK driving licence to confirm your name and picture. Proof of address can be done using a document such as a council tax or a recent utility bill.
Proof of funds is required not only to check you have the money to pay for the property but to also check that the money you have has come to you legally.
This is required irrespective of whether you have a deposit, are a cash buyer, or you are buying with a mortgage.
Required information can include bank statements to show availability of funds, evidence as to where the money is coming from, for example, if it is being gifted or is from an inheritance, and past bank statements to show how money has accumulated.
Getting these organised and making sure you have what you need is a good idea to get yourself prepared and save you time.
How do I make sure my personal information is being handled safely?
Physically handing over or emailing documents to the relevant people has historically been the most common way of submitting the required information.
However, this can create its own degree of risk, so it is important to ask how a company handles your information to ensure it is secure.
Consider questions such as how long documents are kept until they are destroyed, who has access to your details, is the information being uploaded onto a password protected and secure portal, is there secure storage for personal data?
What about ID-checking technology? Is it safe?
With the big shift to digital and looking at ways to better protect our information and be compliant to the latest legislation, using high security online paperless ID checking systems is becoming more and more common place.
This will involve logging into a secure portal or being sent a secure link to which you can upload the required documents.
You can take your own face scan and biometrics are used to check the authenticity against your photo ID. Artificial and human intelligence is running in the background to verify the information and a verification report is provided with the results of the checks.
It’s safe, secure, and quick although it is always wise to do some research into the system being used to give you peace of mind that your information is protected.
Can an online conveyancer help?
An online conveyancing company such as Home Legal Direct can provide an additional layer of support that you would not always get from a high street conveyancing solicitor.
While the conveyancer focuses on the legal work, the dedicated support team not only advise with the buying and selling process and initiate searches, but it is also commonplace that they can carry out the required identity and AML checks through their own identity verification service.
This can benefit customers by helping to speed up all the parts of the process as well as giving peace of mind that your personal information is being dealt with safely and securely, which as we all know is a priority in this day and age.
Peter Joseph is CEO of Home Legal Direct
