Proceeds of crime - can a house be taken away from you?

paddy's_mum

Bit of an odd one here and I wasn't sure quite where to put it, but would value others' opinions. (Moderators - please move if you consider appropriate)

Early this year, my daughter put her house on the market with a local estate agent. First offer accepted fell through due to buyer's mother being taken seriously ill. A second offer was received and the sale went through to a young family, completing in August. My daughter bought my 'old house' since I was by then living in my husband's home, and she needed more space. All transactions were perfectly up-front and legitimate and went through local solicitors of good reputation.

Today she received a telephone call to say "get the local paper - page 5" and when she did so, it was to discover that her purchaser has just been convicted of fraud against his employer and sent to prison. In mitigation, his solicitor said he got into financial trouble after buying a (ie my daughter's) house, and that some of the stolen money had been used for that purchase.

She is now distraught that, in the same way that the Police can take away, say, a lawfully purchased car from you if it proves to be stolen, that she is in danger of losing her home because the sale that allowed her to purchase my property could somehow be set aside.

There are three sets of conveyancing solicitors involved in what was a very short chain, she has a large mortgage and with two young children dependent upon her, is frantic that somehow, her purchaser's crimes will put her into jeopardy.

Any views, anyone?

silvercar

Assuming that her purchase is not related to her, by blood or by business partnerships etc, she has nothing to worry about. If the house was deemed to have been bought with the proceeds of crime, then the house would be repossessed and sold, the proceeds confiscated from the buyer.

There would be no way they would undo a series of transactions that came off that purchase.

paddy's_mum

Thank you for such a prompt reply.

My daughter didn't know the purchaser from Adam and met him only on three occasions - when they did their first viewing, a follow-up measuring visit and when she went to collect any 'escaped' mail, after the purchasers had moved in.

It is a tremendous worry to her, particularly when one considers some of the plain daft decisions made by our judiciary! I don't know whether to be sorriest for her or the purchaser's poor wife and kids, and just before Christmas too!

PasturesNew

They would take the fraudster's house from him and sell it on the open market/at auction to recoup any losses/frauds he committed.

This has nothing to do with your daughter and she will in no way be affected by this. She will not lose her home.

During the investigations, the police may wish to speak to her. She should not be worried by this at all. They will simply ask her simple questions like how she met him and what he said on those occasions.

Anything she says will be viewed by the police as perhaps them finding a small piece of the jigsaw they are building up against the fraudster.

They might just be looking for things like what name he used, if he mentioned where the money was coming from, if he mentioned any locations... and other stuff that might be pertinent to the case against the buyer.

e.g. on meeting him he might have said he had inherited, or won the money; might have mentioned a job relocation; perhaps said he was upsizing/downsizing for family reasons. So they might (only might) be interested in small incidental anecdotals if she remembers any.

On the other hand - they may NEVER be in touch whatsoever.

Your daughter has NOTHING to fear. At all. She is 100% clear.

Good luck

nicola1982_2

Your daughter is definitely in the clear. The local estate agents my find themselves questioned but in relation to the buyer and not your daughter. I would be worrying too - what a shock it must've been.

SquatNow

Get your daughter to do an experian check just in case.

If he was taking his employers for a ride, and credit card offers etc turned up in your daughter name, he might have taken her for a ride too.

It's unlikely, but at £2 for the experian check it's definately worth doing just in case.

Loretta

paddy's_mum wrote: »

Bit of an odd one here and I wasn't sure quite where to put it, but would value others' opinions. (Moderators - please move if you consider appropriate)

Early this year, my daughter put her house on the market with a local estate agent. First offer accepted fell through due to buyer's mother being taken seriously ill. A second offer was received and the sale went through to a young family, completing in August. My daughter bought my 'old house' since I was by then living in my husband's home, and she needed more space. All transactions were perfectly up-front and legitimate and went through local solicitors of good reputation.

Today she received a telephone call to say "get the local paper - page 5" and when she did so, it was to discover that her purchaser has just been convicted of fraud against his employer and sent to prison. In mitigation, his solicitor said he got into financial trouble after buying a (ie my daughter's) house, and that some of the stolen money had been used for that purchase.

She is now distraught that, in the same way that the Police can take away, say, a lawfully purchased car from you if it proves to be stolen, that she is in danger of losing her home because the sale that allowed her to purchase my property could somehow be set aside.

There are three sets of conveyancing solicitors involved in what was a very short chain, she has a large mortgage and with two young children dependent upon her, is frantic that somehow, her purchaser's crimes will put her into jeopardy.

Any views, anyone?

Paddy's Mum you are always so helpful to everyone and show so much common sense and compassion. Your daughter sold her house to this person in good faith, that is the end of her involvement. The police may ask your daughter for some information just to help but she is in no danger at all.

My daughter is an estate agent, sorry, but she does it properly and I asked her about this before I posted, because I wanted to make sure that I was telling you the right thing, and she said that if you want to do the job properly you ask questions and the solicitor should ask questions, if they are honest ones, and you do get a feeling about things. They have a way of checking,and she said that shortly there are other checks available to estate agents, about where the money comes from etc

Your daughter is in the clear and perfectly safe and if the police want to
speak to her it will only be to ask for her help in dealing with this criminal

These sort of people have no regard at all for the upset they cause people who are trying to lead a normal honest life.

You will be OK please do not worry, easier said than done because your children however old they are are always your 'babies'

sparvar

Let me try to explain this to you so it makes sense (it is a bit late).

When a car is stolen, the car itself is stolen property, if you change the number plate and sell it on it is still stolen property with a lawful owner (the registered keeper or the insurance company if the claim has been paid out) hence why it can be recovered by the police regardless of who has bought it.

With regation to the proceeds of crime act the police are able to seize property through the courts which is the proceeds of crime from someone, in essence your daughter has not committed a crime therefore has not made any proceeds from it - she has lawfully sold a house. The person buying it however may have used stolen money, he may well have to repay the money (ie. proceeds of crime) however it is not something your daughter should worry about.

In addition I would also add that it is possible that her buyer bought the house using 'legitimate' money, don't believe everything you read in the paper...

jamtart6

I don't know much about it, but sounds like she will be ok. The others are right, the old house will be re-sold by police, not your daughters house

paddy's_mum

Been having a PC glitch and could only just now get onto the site.

Thank you all for your comments which, incidentally, have been confirmed by my own solicitor, when I managed to speak to him late yesterday.

(Loretta - your generous praise made me blush!)

BrandNewDay

paddy's_mum wrote: »

She is now distraught that, in the same way that the Police can take away, say, a lawfully purchased car from you if it proves to be stolen, that she is in danger of losing her home because the sale that allowed her to purchase my property could somehow be set aside.

If you think about it, that's the opposite of what your daughter did. She did not BUY stolen property. She sold property. As somebody else pointed out, they'll go after this guy's assets (her previous house.)

I think a law about buying stolen cars would be to do with reducing the market for stolen cars, thereby making auto theft less attractive to criminals.