Those carrying out property fraud are becoming increasingly sophisticated in the ways that they are able to target both individual property owners and conveyancers involved in the transaction.
Therefore, it is crucial that we all take proactive steps to protect ourselves from potential scammers.
What Constitutes a High Risk Transaction?
Situations where we need to ensure that we are extra vigilant may include:
- If the legal owner’s home address details are not kept up to date
- If the property is not yet registered with the Land Registry
- If the property is vacant due to the owner being deceased, in long term care or working abroad
In 2021, the Land Registry was forced to pay out £3.5m in compensation to homeowners after approving fraudulent transactions. Thankfully, there are many things you can do to prevent this.
Property Alerts
This is something that you can set up directly with the Land Registry if you think that you are at risk of fraud. Usually, this will mean you can be notified via email if there is any activity relating to your property. Whilst it cannot prevent the changes from being made, it does give you the opportunity to contact the Land Registry to find out more information. You can set up property alerts for up to 10 properties and the fraud prevention service also allows you to monitor a property on behalf of a relative.
Registering a Restriction
It is also possible to enter a restriction onto the legal title of a property, which requires a solicitor or conveyancer to certify that they are satisfied that the seller is the true owner. It is possible to include a Form LL restriction which alerts a solicitor or conveyancer to the fact that the legal owner does not reside at the property and that further checks must be carried out.
Registration
Make sure to check that your property is registered with the Land Registry- you can check this on the Land Registry’s website. If your property is registered already and you notice that there are errors regarding the details of the property, then you should take steps to update the register, which you can also do online.
Be Aware of Email Hacking
Sophisticated scammers are able to hack into emails and gain access to sensitive information, including correspondence between you and your solicitor. It is recommended that you communicate all sensitive information such as bank details over the telephone or face-to-face. You should not use public Wi-Fi as this is more vulnerable to hacking, and always speak to your conveyancer over the telephone to confirm bank details before sending any money to them.
If you are concerned about fraud or would like assistance with any other conveyancing matter, please do not hesitate to contact our conveyancing team on freephone 0800 011 6666 or via email at legal@timms-law.com.