Property Title Fraud

Freebird53

After reading a recent article on 'This is Money' regarding this issue, I wondered if somone knowledgable in the area, could give a better explanation of how this could occur.?

user1977

Would be helpful if you gave us a link or some other clue about what sort of fraud you're talking about? Doesn't sound a good article if it doesn't even explain!

Freebird53

Apologies.

https://www.thisismoney.co.uk/property/article-12242189/Have-signed-protect-home-against-property-fraud.html

It gives a very short 'explanation'. However, i'm having difficulty reconciling the 'explanation', with my admitedly limited knowledge of house conveyancing.

An extract:-

"Fake buyers can pretend to make an offer on your property and withdraw it right before completing, and they use the information gathered in the offer process to commit title fraud.This is where a scammer changes the title deeds of the property into their name, and can then apply for loans using your home as collateral.If an unfortunate homeowner hasn't spotted that their title deeds have been changed into a scammer's name, a potential buyer could be at risk of getting scammed, too."

So, I have a house, how does a criminal change the deeds to my property?

silvercar

First line of defence is to register for Land Registry property alerts, so you are at least notified of changes to the deeds. More info here:

https://www.gov.uk/guidance/property-alert

p00hsticks

Freebird53 said:

So, I have a house, how does a criminal change the deeds to my property?

They pretend to be you and sell it to someone else
This is a case from a couple of years ago
Luton man left shocked as his house is ‘stolen’ - BBC News 

Freebird53

silvercar: Yes, the article I linked to gives that advice, however I am attempting to understand exactly how it could happen.

poohsticks: It would appear from that article, that a fairly sophisticated ID theft must take place first.

It says someone obtained details of one of his bank accounts, but surely that in itself would not be sufficient. IE simply having an account number and sort code. They must surely also have obtained his Bank security information?

Ultimately, as alluded to, the Land Registry pays out compensation for such events?

user1977

There is a greater risk if (a) you don't have a mortgage (more problematic and less profitable for the fraudster if they have to pay off your mortgage before selling/remortgaging!) and/or (b) you're not resident at the property (fraudster might pretend to buyers/agents they are you, and/or collect post).

But in general, it's still a very rare type of fraud, I wouldn't get too paranoid about it.

Freebird53

user1977: I'm not! It's simply that the original article piqued my interest, and required that I find out more!

In a follow-up article on the BBC:-https://www.bbc.co.uk/news/uk-england-beds-bucks-herts-59167750

It appears I was correct, ID theft took place to gain access.

propertyrental

There are 2 main risks.

1) Fraudster steals your ID, pretends to be you, and sells property to unsuspecting buyer. Most common with empty properties, or tenanted properties. 'Tenant' could tell EA he's the owner (you) do viewings etc.

Set up Land Registry Alert.

2) fraudster intercepts your email. Your solicitor emails you their bank details so you, as buyer, can send them £X00,000 to buy a property. Fraudster substitutes their banks details in the email then forwards it to you. You send fraudster's bank £X00,000.

Flugelhorn

propertyrental said:

There are 2 main risks.

1) Fraudster steals your ID, pretends to be you, and sells property to unsuspecting buyer. Most common with empty properties, or tenanted properties. 'Tenant' could tell EA he's the owner (you) do viewings etc.

Set up Land Registry Alert.

2) fraudster intercepts your email. Your solicitor emails you their bank details so you, as buyer, can send them £X00,000 to buy a property. Fraudster substitutes their banks details in the email then forwards it to you. You send fraudster's bank £X00,000.

1) definitely set up land reg alerts - I have them for mine and the kids properties, also one for a vulnerable relative. 

2) Phone up the solicitor and chat to the accounts department to confirm correct details - my solicitor tells me to do this when sending payment details - send small amount of money first and speak to the to check that this has gone through 

AlexMac

If Freebird lived anywhere near either of my two (mortgage - free) rental properties, I'd be worried about their seemingly unhealthy interest in a detailed, step-by-step explanation and guide as to how one might go about pulling off this scam!

But I'm OK as
a) they don't know where I live.
b) I've registered for Land Registry alerts, and 
c) the grand-daughter is our tenant in one of them; she's no mug, 6'1"" tall, with an even bigger boyfriend, and might notice if someone hookey came nosing round!