The Land Registry has launched a service called Property Alert aimed at anyone who thinks their property could be at risk from fraud.
Property fraud can happen in many ways, such as fraudsters trying to acquire ownership of a property by using forged documents, or by impersonating the registered owner. The fraudsters may then raise money by mortgaging the property without the owner’s knowledge before disappearing without making repayments, leaving the owner to deal with the consequences.
Land Registry’s counter-fraud unit works closely with the police and other agencies to reduce the risk of property fraud. Between September 2009 and January 2014 Land Registry stopped fraud on properties worth more than £62 million.
Alasdair Lewis, director of legal services, said: ” Following a successful trial of Property Alert, we hope that many homeowners will want to sign up for this new free service to help them protect what is probably their most valuable asset.”
People can sign up and register up to three properties to be monitored. Email alerts will be sent when Land Registry receives an application to change the register. The most common types of application are to record the sale of a property or a mortgage or other secured loan. Emails will also be sent when official searches are made and this can be done up to 30 days before an application is made.
People can then judge whether or not the activity is suspicious and if they should seek further advice. For example, if you receive an alert that a bank has lodged a search on your property but you haven’t applied for a mortgage, you may want to seek legal advice, contact Action Fraud, or contact the bank in question to tell them you are the owner and have not applied for a mortgage. Investigations into the authenticity of the mortgage application can then begin much earlier in the process.
How to sign up for Property Alert
You will need to set up an online account with Land Registry which is free – http://www.landregistry.gov.uk/propertyalert.
People who are not online can sign up for Property Alert by calling 0800 678 1678.
At risk properties
Properties most likely to be at risk from property fraud include empty properties, such as where the owner lives abroad or is in a care home.
If there are family problems, for example, when a relative dies, a family member could try to sell a property without giving someone their proper share or in a relationship break-down someone could try and mortgage a property without their partner knowing.
Tenanted properties can also be targets, for example, where the owner lives elsewhere, a tenant might try to mortgage or sell the property without the owner’s knowledge.
And then there are properties without a mortgage. According to Land Registry records nearly half of all registered residential properties are mortgage-free.
Other measures to help protect yourself against property fraud
If your property is registered and you become an innocent victim of fraud and suffer financial loss as a consequence, you may be compensated.
Once registered, ensure Land Registry has up-to-date contact details so it can reach you easily. You can have up to three addresses in the register including an email address (strongly recommended) and/or an address abroad.
Owners who do not live at the registered property can make a request to enter a restriction for free using the form RQ. This restriction means Land Registry will not register a dealing with your property, such as a transfer or a mortgage, unless a solicitor or other professional conveyancer certifies that they have checked the identity of the person who has signed the deed. Since the introduction of the RQ form in February 2012, there have been 9,723 applications.
Property Fraud line
Land Registry operates a Property Fraud line for anyone who thinks they may be the victim of property fraud – 0300 006 7030 (Monday to Friday, 8.30am to 5pm). Since the introduction of the property fraud line in February 2013, Land Registry has helped more than 1,000 people who have made contact.
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