NRLA’s partner, Title Guardian is the UK’s first proactive protection service against title, identity, and property fraud (learn more here). Mollie Tant, a Relationship Manager at Title Guardian, has provided the following advice to help property buyers safeguard themselves against fraud. 

Imagine this: you’ve gone through the arduous process of finding the perfect buy to let property, spent your hard-earned savings, and are looking forward to getting ready to rent...only to find you have purchased the property from a fraudster. Unfortunately, this is not a hypothetical scenario.  

In December 2022, *Paul Jones agreed to buy a property in Ilford, East London which was due to be sold at auction. He made an offer pre-auction which was accepted. Paul instructed his London lawyers, who he had used many times before, and the seller instructed a reputable law firm. Paul sent his lawyer almost £400,000 from personal and family cash resources and the transaction was completed. It wasn’t until he’d received the keys and visited the house that he realised he’d been scammed, purchasing a property that wasn’t actually for sale.  He had purchased the property from a fraudster who had rented it via a High Street Lettings Agency from the true owner. The fraudster then changed his name by Deed Poll to the real owner's name and obtained a Driving License that passed all conveyancing Safe Harbour checks. 

Property fraud cases are becoming increasingly sophisticated, making it easier for fraudsters to pose as the rightful owners and trick all stakeholders in the chain.  

These tips will help you to be vigilant when buying property to help prevent you from being conned by fraudsters when it comes to your next purchase.  

1. Double check the seller’s identity

Fraudsters are clever and can steal identities through various means, such as intercepting post, legal name changes and companies house fraud. You can protect yourself from this by:  

• Request to meet the seller in person – preferably at the property you want to purchase. In the case above, the real owner was of a different ethnicity than the fraudster. Requesting multiple forms of ID Driving License and Passport making sure the name and addresses match the property’s title deed. The fraudster may have one form of ID but it is highly unlikely they will have both. 

• Conducting background checks: cross-checking the seller’s details with local authorities, the Land Registry, companies house (if applicable) and utility companies

2. Verify the property’s ownership early

• Do not just rely on the seller’s solicitor or estate agent, consider doing your own search on the Land Registry to confirm the seller is the legal owner. 

• Beware of vacant or rented properties as these are often at more risk of being targeted by fraudsters. If the property is vacant, ask more questions.  

3. Be cautious with pre-auction deals

If the property is yet to go to auction, be mindful. This is a strategy scammers use to avoid additional security checks and scrutiny. You can insist on third-party verification, making sure the auctioneer and a separate legal team verify the seller’s identity with multiple documents before committing to purchase.  

4. Be cautious of unusual urgency

If the seller or agent insists on a fast sale without offering a valid reason, this could be a red flag. Avoid skipping any part of the legal process to meet artificial deadlines. Do not exchange and complete on the same day. 

5. Use trusted and reputable professionals

• Hiring legal professionals with experience in property and possibly with preventing property fraud can add an extra level of protection.  

• Ensure they have a strong identity verification process. Insist on them requesting 2 forms of photo ID.  

• Check your lawyer’s credentials before hiring them.  

6. Report suspicious activity immediately

If you think you are the victim of property fraud, immediately contact the HM Land Registry property fraud team. You can also: 

• Report it to the Police  

• Report it to Action Fraud 

• Get advice from Citizens Advice Bureau or an independent legal advisor 

7. To protect yourself from being the victim of property fraud, we advise that you:

• Register your property or properties with Title Guardian - NRLA members get their first property free of charge and the next 2 properties at a 40% discount from RRP. 

• Set up alerts with HM Land Registry 

• Put a restriction on your title meaning HM Land Registry is stopped from registering a sale or mortgage on your property unless a conveyancer or solicitor certifies the application was made by you, and 

• The question frequently arises, what is the difference between Title Guardian and the Land Registry alert service? This video explains this nicely:  https://titleguardian.com/landreg/landreg.mp4

• #titleguardian