How to Protect your Property from Fraud

The move by the Land Registry from paper Titles where evidence of ownership was provided by means of a Land or Charge Certificate which needed to be produced to the Land Registry on the registration of a transaction to an electronic based system has resulted in a growing number of transactions where fraudsters have been able to sell or mortgage someone else's property.

Empty properties where the owner is absent because, for example, they may live abroad or where the owner has died and the estate is still being dealt with are an obvious target although even properties which have been occupied by tenants have been susceptible to fraudulent transactions.

In order to combat the rising number of transactions where this is occurring, the Land Registry have introduced a new form of protection which involves the registration of a restriction on the owner's Title and which alerts the Land Registry if a fraudulent transaction is lodged and prevents any dealing with the property from being registered without a Conveyancer's Certificate.  A requirement is that the Certificate must confirm that the Conveyancer is satisfied that the person who executed the document submitted for registration is the same person as the registered proprietor.

Although these arrangements are currently undergoing an initial six month trial the likelihood is that this will become a permanent feature in the Land Registry's long-term plans to combat fraud.

There is no Land Registry fee payable for this service but it is important to note that it only applies to residential property and is therefore not appropriate for use in respect of commercial property or development land or where residential property is owned by a company (as opposed to an individual).

The Land Registry are anxious to encourage all property owners who think they may be susceptible to a fraudulent transaction or those who are aware a family member owning an empty property which might be vulnerable to register the restriction and the arrangements the Land Registry have put in place are a sensible precaution to protect what is, after all, many peoples most valuable asset.

For further information or advice in completing the necessary form for submission to the Land Registry please contact Matt Rimmer or Sherry Foot in Pengillys Property Department.

If you are the owner of a commercial property or a company owner of a residential property then steps can still be taken to register a restriction on dealings at the Land Registry and Pengillys can also deal with this for you but the Land Registry will charge a registration fee of £50.