THE MIDLANDS PROPERT Y GUIDE MONE YWATCH F INANCE
HOW TO PROTECT YOUR HOME FROM TITLE THEFT
Here’s what you need to know about property title fraud. And five steps you can take to avoid falling victim to the fraudsters who are out to steal your home
Title fraud happens when criminals take ownership of a property by getting hold of its title – the legal right to its ownership – by illegal means. Although it’s not something that criminals pull off very often, they keep trying because the potential rewards are so big. We’ve got the low down on what’s involved in this fraud that’s on the increase, and how you can protect your home from title theft.
WHAT IS TITLE THEFT? Remember the case of poor Rev Mike Hall who was living and working away from his Luton home in 2021, but rushed home when alerted by neighbours to find that someone had fraudulently secured the title for his home and used it to sell the house to an unsuspecting new owner who was ensconced and busy doing building works to the house, all completely unknown to Mike.
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In November 2023, after a two-year legal fight, Mike got his home back when the Land Registry put his name back on the house title. He is negotiating with the Land Registry for compensation for the damage done to his home during the two years, but he will receive no compensation for the stress or loss of rental income.
THE LAND REGISTRY The Land Registry is the government body that holds electronic title records for property in England and Wales. Currently, it has titles registered for 26 million properties in England and Wales, which cover 88% of the area of the two countries. Since 1990 all property sales – and, since 1998, all mortgages taken out on property – have had to be registered with the Land Registry. Scotland and Northern Ireland have their own Land Registries.
In the past five years, the Land Registry has prevented registered title theft attempts against £100 million worth of property. It has a statutory compensation scheme, compensating anyone who suffers loss because of a mistake on the register. The Land Registration Act 2002 sets out when a mistake in the register can be put right, and when it cannot, and in what circumstances compensation will be offered.
HOW THE FRAUDSTERS OPERATE Generally, those wanting to undertake title fraud first commit identity theft, taking on the name of someone who owns a property. Then they try to gain possession of the property title held in that name, and/or to raise a mortgage against the property. The fact that conveyancing these days is all done remotely and online, makes this kind of fraud easier. Because of the large potential rewards, fraudsters will go to great lengths to commit this type of crime: illegally obtaining fake ID and genuine documents in a property owner’s name, then opening a new bank account in their name – or even going so far as to change their name to that of the property owner.
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WHAT TYPES OF PROPERTY AT RISK? Certain categories of property are particularly at risk from title fraud, such as those that are empty or rented. The more of the following categories a property falls into, the more at risk it becomes.
Sole owners:When a property is owned in just one name, that means there is only one owner to impersonate, and only one ID to steal or fake
Mortgage free: If a property has no mortgage, there will be fewer checks on property transactions
Rented: In a rented property, a tenant could impersonate the landlord/owner. They will have access to the property and can use the address easily. Here’s the story of Grahame Hawthorn, whose brother’s property was mortgaged by a tenant while Graham looked after it
Absentee landlord: A landlord who lives far from the property and isn’t aware of what’s going on there makes it easier for fraudsters to operate. A criminal could, for example, impersonate the property owner/landlord to gain access to the property under false pretences
Not registered with the Land Registry: The lack of recorded title and registered owner make it easier for fraudsters
Owner in care home: If the owners are away or cannot look after their affairs properly, fraudsters can strike more easily
Owner deceased: Once a property owner has died, a fraudster could steal their ID more easily and access the property unchallenged
On the market: Fraudsters sometimes pose as buyers and use the purchasing process to gain information about the property and seller, then withdraw at the very last minute, before using the info gained to commit title fraud
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