The organisation points out that property fraud can happen in many ways. For example, fraudsters may attempt 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.
The Land Registry’s award winning Counter-Fraud Unit works closely with the police and other agencies to reduce the risk of property fraud. For example, between September 2009 and January 2014 Land Registry stopped fraud on properties worth more than £62 million.
‘Following a successful trial of Property Alert, we hope that many home owners will want to sign up for this new free service to help them protect what is probably their most valuable asset,’ said Alasdair Lewis, head of Legal Services.
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 as well as for official searches. They 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.
Those wishing to join the scheme need to set up a free online account with the Land Registry and email alerts are sent when official searches and applications are received against a monitored property.
The benefits include getting an early warning of suspicious activity and it allows an owner to take immediate action if something happens to their property that you are not expecting.
Properties most likely to be at risk from fraud include empty properties where the owner lives abroad or is in a care home or where there are family problems, such as 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 situation someone could try and mortgage a property without their partner knowing.
Tenanted properties can also be at risk. If the owner lives elsewhere, a tenant might try to mortgage or sell the property without the owner's knowledge. Also properties without a mortgage can be at risk. According to records nearly half of all registered residential properties are mortgage free.
Owners can take their own measures to protect against property fraud. The Land Registry recommends making sure your property is registered. If you become an innocent victim of fraud and suffer financial loss as a consequence, you may be compensated.
Once registered, and owners should ensure that 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 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. This restriction means we 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.
