Property fraud prevention: a homeowner’s guide to bulletproofing their home from fraud

By Simon Keeler, Associate Solicitor at Mayo Wynne Baxter.

In the picturesque Sussex countryside, where rolling hills meet historic towns, property ownership is a popular passion. However, underneath this veneer is a little-discussed but important risk: property fraud.

As digital connectivity increases, the risks of property fraud increase, making property fraud prevention an important issue for property owners and potential buyers.

This article provides comprehensive guidance to protect your investment assets from fraud, and focuses on practical, technology-driven solutions.

Understanding property fraud in Sussex

Property fraud can manifest itself in many forms, from stolen identities that are sold or rented without the consent of the owner to more advanced frauds designed to defraud buyers and sellers.

The threat is real in Sussex, like elsewhere in the UK, where fraudsters target urban and rural properties. Identifying the most common types of fraud is the first step to preventing it. These include email hacking, where fraudsters intercept communications between consumers and lawyers and divert payments, and investments that promise bogus returns on investment properties.

Protecting your assets: practical steps

Protecting your assets requires diligence and the use of tools and services designed to deter fraudsters. There are many steps every property owner should consider that can be implemented.

The Land Registry website provides detailed instructions on how to check the registration status of your property.

Use the Land Title Property Alert Service: Sign up for the property warning service offered by the Land Registry. This free service notifies you of any investigations or applications being made by the government against your property, which can act swiftly if suspicious activity is detected.

Apply for a restriction on your property: Adding a restriction on your property listing can help prevent fraud by ensuring that any attempts to sell or mortgage your property premises must be certified by an attorney or conveyancer. This is especially recommended for rent-free or rental properties.

Implementation of technologies and services for security

Advances in technology have provided a wealth of tools and services that can enhance the safety of real estate transactions:

• Online search: The Land Registry website provides property owners with a way to view detailed information and track changes in the condition of their property. One important factor that is often overlooked is the importance of keeping your contact information up to date in the ownership record. Property owners can register at three addresses, including an email address and an overseas address, to ensure they can be contacted quickly if questions or problems arise.

• Take professional legal advice: For maximum certainty, always seek professional advice when dealing with property transactions. A solicitor can provide indispensable services to verify transactions and advise on steps to protect your assets It is possible to register multiple contact addresses for the owner of a property at the Land Registry.

• Educate and report: The more you know about property fraud and how it can happen, the better prepared you will be to deal with it. Resources such as the Sussex Business Times and government websites provide valuable information to stay ahead of fraudsters.

Case studies and real-life cases

Understanding the real-life context of property fraud can help identify potential risks. A common example of fraud is when a tenant or occupier of a property holds themselves as the owner and seeks to sell or let it. The Land Registry has prevented fraud in properties worth more than £123 million over the past five years, emphasising the effectiveness of precautions and proactive measures.

Conclusion

By taking a vigilant approach, using available technology, and seeking professional guidance, property owners and buyers can significantly reduce their risk of being a victim of property fraud.