Property transactions can be complex even when everything is straightforward. If there are fraudulent activities, the process becomes many times more difficult. Knowing what risks you face and how to protect yourself and your property against them is crucial for a smooth transaction.
Examples of Fraud
A particularly devastating form of fraudulent activity is identity theft. In relation to property, the fraudster could use a property owner’s identity to take out a mortgage on the property or even put it up for sale.
Fraudulent mortgages can also be a problem as fraudsters gain fake mortgages through lies about the property’s value. Fraudsters can also lie about a property’s state to trick a buyer into paying more than they should.
Protect Against Fraud
Register your property with the land registry to officially show that you own the property. You can then set up alerts so you can quickly learn of any suspicious activity.
Another measure you can take is a Form LL Restriction. This adds a layer of protection against fraudsters by placing restrictions on conveyancing, which can stop fraud if someone is pretending to be the legal owner. The disadvantage of this is that it can slow down the conveyancing when you do want to sell. If a Form LL Restriction is a step you do want to take, make sure it is completed properly by using a reputable legal firm such as https://www.parachutelaw.co.uk/form-ll-land-registry-restriction.
Make sure the legal firm you are using for conveyancing has secure online systems. Digital technology can help the transaction run more smoothly but it can also provide access for fraudsters. However, tech companies have created platforms with strong encryption and controls to help keep information safe. Today A.I. too plays a role in spotting the risks early.
While the risks of fraudulent activity can never be completely dismissed, by registering with the land registry, setting up alerts and using tools such as a Form LL Restriction, you can significantly reduce the chance of anything untoward happening.