Your house is undoubtedly one of the most valuable assets you own, so what can you do to ensure you keep the fraudsters away? Unfortunately, property fraud is on the rise, and due to the variety of sophisticated methods fraudsters employ nowadays, anyone can fall victim to these scams. Anyone who is a homeowner or is in the process of buying a property can be a target. Generally, you are more vulnerable if you are the sole owner, if your property is rented out or not mortgaged, or if your identity has been stolen.
Criminals can impersonate anyone involved in a property transaction, from the buyer or seller to the conveyancer assisting with the purchase. Understanding these risks is a key part of navigating the complexities of property transactions, much like understanding what a conveyancing solicitor does for the buyer.
To make sure you don’t fall victim to property fraud and to avoid any risks, we’ve put together some handy tips on how you can best protect yourself and your house:
1. Check that your property is registered and the details are current
If you’re about to own a new property, you should make sure it is registered with the HM Land Registry. If you already own a house, regularly check that the personal information held on the register, especially your official home address and contact details, is accurate and up-to-date. This is a fundamental step, similar to asking the key questions every buyer and seller should ask during the transaction process.
If you believe you might be at higher risk of fraud (e.g., if you’re renting out the property or live elsewhere), you can sign up for the Land Registry’s free Property Alert service. This allows you to monitor up to ten properties and receive email notifications when certain activities occur, such as a new mortgage or a change of ownership application, enabling you to take swift action if needed.
2. Register for an anti-fraud restriction
An anti-fraud restriction placed against your property title means that the Land Registry will not register any sale or mortgage on the property unless a conveyancer or solicitor certifies that the application was made by you, the legitimate owner. This verification step is crucial, and highlights why you should use a trusted solicitor for your conveyancing.
For a nominal fee (currently £40 per property if the owner does not live at the property, or free if they do), this restriction can be a significant deterrent and a mindful step to ensure your property is kept safe from fraudulent activities. It’s particularly recommended for properties that are empty, rented out, or mortgage-free.
3. Be vigilant against email and communication hacking
A common and sophisticated scam involves fraudsters hacking into email accounts to intercept communication between you and your conveyancing solicitor. Once they gain access, they can alter bank details in emails, redirecting your funds into their accounts. This risk is especially pertinent around completion day and how to prepare for it, when large sums are transferred.
- Verify bank details: Always verbally confirm any bank details directly with your solicitor using a known and trusted phone number before transferring money. Do not rely solely on details provided in an email.
- Secure your accounts: Use strong, unique passwords for your email and online banking, and enable multi-factor authentication (MFA) wherever possible.
- Avoid public Wi-Fi: Do not conduct sensitive financial transactions or share personal information when using public Wi-Fi networks, which can be less secure.
- Be wary of changes: Be suspicious of any sudden changes in instructions or bank details, especially if communicated only by email.
4. Conduct thorough due diligence
Ensuring you make a wise and secure investment involves seeking professional advice from experienced property solicitors. As part of the conveyancing process, particularly when understanding what a conveyancer does for the seller or buyer, they will:
- Check the validity of the title to the property.
- Prepare and review the contract for the purchase.
- Carry out conveyancing searches, explained here, to identify possible restrictions or problems.
- Prepare all the transfer documents that give you legal ownership.
Additionally:
- Verify identities: Independently verify the identity of all parties involved, including the seller, buyer, and their legal representatives. Check if solicitors are registered with the Solicitors Regulation Authority (SRA) and estate agents with their respective professional bodies.
- Question urgency: Be cautious of deals that seem “too good to be true” or involve undue pressure to complete quickly.
- Understand property details: Before committing, ensure you fully understand details such as property covenants in England and what you need to know.
5. Implement additional protective measures
Beyond the specific steps above, incorporate these general security practices:
- Secure document disposal: Shred any documents containing personal information, bank details, or property-related correspondence before disposing of them.
- Monitor credit reports: Regularly check your credit report for any unusual activity or searches you don’t recognise.
- Be cautious online: Limit the amount of personal information you share on social media that could be exploited by fraudsters to impersonate you.
- For landlords: Implement robust tenant referencing procedures, including identity and right-to-rent checks.
- Secure vacant properties: If your property will be vacant for an extended period, take measures to make it appear occupied and inform trusted neighbours or a property management service. This can also help avoid issues that might devalue your property.
6. Know what to do if you suspect fraud
If you suspect you are or have been a victim of property fraud:
- Contact Action Fraud: Report the suspected fraud to Action Fraud immediately.
- Inform the Land Registry: Notify HM Land Registry as they may be able to prevent further fraudulent transactions.
- Alert your solicitor and bank: Your legal advisor and financial institution need to be aware to take protective measures.
- Gather evidence: Collect any correspondence, emails, or details related to the suspected fraud.
Our specialists will make you aware of any property investment scams and they will work with you to best protect your interests. It’s always wise to do your due diligence regarding the house you’re interested in buying, and understanding when you should instruct a conveyancing solicitor is a critical first step.
About Us
With 5 partners and over 90 staff, based in our Stockport offices, Gorvins Residential specialist legal teams work with private individuals and companies from all walks of life buying, selling, transferring or re-mortgaging their properties. Our expertise also extends to market insights, such as understanding the Stockport property market through a postcode district breakdown.
If you’re looking for a solicitor for buying a house or you need any further guidance on property fraud protection, please give us a call on 0161 930 5350 or e-mail us at enquiries@gorvinsresi.com.
