‘Media reports of a Luton vicar discovering his locks changed and a stranger in his home, is an extreme example,’ says Conveyancing Manager, Kerry Walker. ‘However, there is no room for complacency and there is a lot that you and your solicitor can do to prevent you becoming a victim of property fraud.’

What happened in Luton

Reverend Mike Hall made the headlines when a fraudster targeted his modest terraced house in Luton. Working away from home, he was surprised when his neighbours called to say there was someone in his house. Hurrying back, he was even more surprised to find his home stripped of furniture and a builder mid-renovation. When challenged, the builder called the new owner who claimed to have bought the property in good faith. Worse, Land Registry records confirmed the change in ownership and the police initially refused to get involved, saying it was a ‘civil matter’.

Sadly, this was a bad case of a property fraud where the fraudster had used the Reverend’s driving licence and bank details to impersonate him and had purported to sell his home.

The buyer, and their conveyancer, believing they were dealing with the real owner of the property, accepted a fake transfer which moved the sale proceeds to the fraudster’s account. The fraudster then applied successfully to the Land Registry to register the new buyer in place of Reverend Hall.

With registered land, entry in the register is definitive proof of ownership. While the Land Registry may conduct its own investigations, it also relies upon checks by conveyancers. Unfortunately, the Land Registry had already registered the buyer in the register when it discovered the transfer was fake. The rules about correcting the register are complex. In general, the Land Registry will not alter the register if that means displacing an innocent owner who is in occupation. Instead, it compensates the wronged party.

How you, as a homeowner, can avoid becoming a victim

This guarantee of title means victims, like Reverend Hall, have some financial protection. However, it does not compensate for the stress and heartache caused by property fraud and the tortuous process of sorting things out.

So, it is important to reduce the risk of becoming a victim.

• First, consider signing up to the Land Registry’s free property monitoring service. This sends you an alert when the Land Registry receives certain applications relating to your nominated property, for example, a transfer to register a new owner or a charge. It will not block the application, but it gives you the opportunity to take the appropriate action quickly. For example, if you suspect a fraudulent transfer, you should contact your solicitor or the Land Registry straightaway. Title fraud is a crime, although it may need specialist help to identify and address.
   
• Second, keep your records up to date. When the Land Registry enters you as owner in the register, it will also record your address for service. This is where it will send any notices or correspondence, so make sure yours is correct, especially if you are not living at the property. There is a special form for this, COG1, and you must also provide evidence of your identity. You may give up to three addresses, including an email address. Fraudsters rely on their activities going undetected, so do not make this easy for them.
   
• Thirdly, you, or your solicitor, can apply to the Land Registry for the entry of a restriction against your title. This will prevent the registration of a new owner unless they first comply with the terms of the restriction. A restriction may be appropriate where there is an additional risk of fraud, for example, because you do not live at the property yourself. The restriction typically requires a conveyancer to certify they are satisfied the person executing a transfer is the same person registered as its owner. Although still dependent on a conveyancer conducting the right identity checks, this adds an additional layer of protection.

You can find more tips on how to protect your property in a guide issued jointly by the Fraud Advisory Panel, the Land Registry and the Law Society.