Protecting Against Property Fraud

Land and buildings are usually the most valuable assets people own. They can be sold and mortgaged to raise money and can therefore be attractive targets for fraudsters. Land Registry, professional conveyancers and mortgage lenders all have safeguards to minimise the risk of a fraud being successful. However it is important that property owners do what they can to help prevent fraud and to protect their ownership in the same way that they protect other things they own.

Anyone owning an interest in property can be the victim of property fraud, but there are some situations where this is more likely, such as:

• where a relationship breaks down
• where a property is empty or is bought to let
• where the owner is abroad or absent
• where the owner is infirm or in a home

If you are in any of these situations, or you are otherwise concerned that you may become the victim of property fraud, seek advice from a professional conveyancer such as our
Solicitor at LCS or a Citizens Advice Bureau and consider taking the action mentioned in this guide.

There are a number of things you can do to help prevent fraud or forgery with respect to your property interests.

1 - Register your title

If your property is not registered, consider applying for voluntary first registration.
Registering title provides an up to date official record of who owns land in England and Wales. Any person dealing with registered property would have to check the register of title maintained by Land Registry to confirm who the owner is. They would also be able to see if there were entries on the register that required them to obtain information or evidence to enable their transaction to be registered.

State-backed registration gives you greater security of title and, depending on the situation, if you suffered loss as a result of a fraud you may be able to get compensation from Land Registry. Land Registry will seek the return of any compensation paid from
anyone responsible for the fraud or against whom the customer would otherwise have had right of legal action in relation to the fraud. In the case of criminal offences relating to fraud and suppression of information or dishonestly inducing changes to the register of
title, Land Registry will encourage the police to pursue those responsible. Land Registry also carries out checks and their procedures also provide safeguards against fraudulent transactions being registered.

For more information about applying for voluntary first registration please see:
— Land Registry Public Guide 8 –Registering title to land – the characteristics and advantages that explains the benefits of registering your land or speak to our staff.

2 - Keep your name and address on the register up to date

If you own a property registered with Land Registry you have to provide an 'address for service'. This is an address to which they will send letters and notices if they need to contact you, such as where they have received an application concerning your property.
You also have to provide an address for service where you are named in the register as the owner of a mortgage (that is, you are the lender) and for certain other types of property rights. LCS can advise you when an address is required. You can have up to three addresses for service on the register. One of these must be a postal address, but this does not have to be in the UK. The other two addresses can include:

• a UK or overseas postal address
• an email address
• a DX address, as long as Land Registry already have an arrangement

with the DX service provider. (DX stands for document exchange, a service   provided by several firms in the UK who collect and deliver mail.) Private individuals do not normally have DX addresses.

It is important that Land Registry has your correct name and address. An incorrect name or address may mean that you do not receive letters or notices that they send to you. You should therefore always keep your name and address on the register up to date. At LCS we can advise on keeping the registers up to date and submit any documents required by the Land registry.

3 - Have three addresses for service on the register

If you are concerned that you are, or may become, the victim of property fraud, consider having more than one address for service. For example, you might want to have  not just the property address, but also the address that you are now living at. You might also want to consider asking LCS to act as a ‘care of’ address.

4 - Put a restriction on your title

If you think that you are particularly at risk of an attempted fraudulent transfer, mortgage or discharge of your registered land interest, you might want to consider applying for the
entry of a restriction on your title. A restriction is an entry in the register that limits the powers of a registered owner of the land to deal with or dispose of the land.
You should speak to your LCS if you wish to apply for a restriction.

If you think that you have already been the victim of property fraud, or someone has changed the register so that you are no longer shown as the owner please contact the relevant Land Registry office immediately. In addition, please contact a solicitor or a Citizens Advice Bureau and the police. You should seek our advice if you are not sure what to do.

5 - Be careful if you are asked to sign documents

Be careful what you sign. Take professional advice if you are not sure what it is you’ve been asked to sign or what its legal effect might be.

Extracted from Land Registry Public Guide 17 Jan 2010