How To Protect Yourself From Property Fraud

WHETHER YOU ARE A TENANT…A LANDLORD…..LOOKING TO BUY OR SELL A PROPERTY -THIS BLOG IS WORTH A READ

We Blog about all property things good bad and ugly….so today unfortunately it’s about the growing threat of property fraud – especially so-called hijacking.

This hijacking can happen when a ‘tenant’ will rent a property using fake documents, then change their name by Deed Poll to take on the landlord’s name which can be found on the tenancy agreement.  Using this new name and fake documents, the criminal then puts the property on the market with an estate agent. 

When the property is sold and a solicitor starts the conveyancing process, it is then difficult to spot any discrepancies and the sales transaction may go through if no-one is alerted.  When the sale goes through the money is often quickly transferred to an overseas bank account and impossible to retrieve. Alternatively, a criminal may simply view details of a property on HM Land Registry’s website – this can be viewed by anyone – and target properties this way.

Von Grundherr says you could register an anti-fraud restriction on your property with HM Land Registry.  

“This means that any application to register a sale or mortgage on your property must be certified by a solicitor confirming they are satisfied the person signing the documents is the registered proprietor.  If not, the application will be blocked. This also acts as a deterrent to would-be fraudsters.”

Like millions of TV viewers you may have enjoyed watching ITV’s prime-time drama, Our House.  It tells the story of a woman who comes home only to find someone has moved into her house without permission. Yes this series is simply a work of fiction but the reality is very different now because the truth is property fraud is rising – and everyone in our sector needs to be on red-alert to the dangers. 

Latest figures from the Office of National Statistics have revealed a rapid increase of people who fell victim to cons last year. The pandemic has only made things worse with so many things going virtual, so you can purchase a property without meeting your mortgage broker, surveyors, and conveyancing solicitors in person. With communication taking place over emails and phone calls, it is even easier for fraudsters to infiltrate and impersonate as one of the parties involved.

It’s important to realise you can’t rely on your bank or building society or the police to help you if you fall victim to a fraud. It’s vital instead that you take proactive steps to protect yourself from these scammers.

So here are some additional step you can take to protect yourself from property fraud.

Use a specialist lettings agent:  Let your property through a professional lettings agency that’s a member of Propertymark will greatly reduce the risk of property fraud.

Thorough tenant referencing: Accurate referencing is essential.  It’s a complex process, so here at Belvoir we use an independent tenant referencing company to carry out checks and protect you against the use of fake documents such as bank statements and utility bills.  

Jo Dicken of Let Alliance  states

 “There is so much we do now that has evolved over time with the increase in fraud. All our teamdo regular Fraudulent reference training, we have thorough Iban and sort code checkers, bank statements are finely inspected and we even have  a Domain checker –checking any suspicious domains that do not link to websites or websites that have minimal information on to check when created to ensure not for the purposes of referencing.

It’s also about working together – being careful of people who volunteer rent in advance to avoid referencing, being mindful of people who do not want to come to the office or meet in person”

So Jos team work hard to protect tenants and Landlords against fraud which is why at Belvoir we are proud to work so closely with them.

Land Registry- sign up for email alerts so if anyone (including you) attempts to change any aspect on the register an automatic email is sent to you

Check your credit rating:   Regularly check your credit rating with a credit agency such as Experian to warn you of possible attempts at identity theft.

Good communication with your tenant (if you don’t use an agent)- If you have a good relationship with your tenant and ask them to let you know if anyone ever approaches them about the property and any matters relating to it other than you, to ensure they let you know.

Another growing trend sees fraudsters posing as rental agents. Criminals advertise a rental property and pressure interested parties to pay a holding deposit. They then disappear with the holding deposit. So when you go to view a property  always asking plenty of questions to make sure that the agent/person is genuine. You can check them out online, most have photos on their sites now so you know who you are meeting.

So whether buying selling, letting or renting a property ‘communication’ is key to preventing fraud. When you come to sell or buy a property you should ensure that you are regularly corresponding with all parties involved not only via email, but face to face and over the phone. This includes your solicitor, estate agent, financial advisor and the related seller or buyer.