If you are a landlord or you own property that you do not live in, then you are more vulnerable to fraud than people living in their own property. Tactics used by fraudsters are becoming more sophisticated, so it’s important to be aware of the potential threats and know how to protect yourself.
Identity Fraud
As an absentee landlord, you are more prone to identity fraud because official correspondence and important documents may be sent to the property. These can easily be intercepted. Fraudsters can then use them to pretend to be you. They could take out finance agreements for phones or apply for loans in your name.
You are at greater risk of this type of fraud if you rent out your property, your property is empty, the property is being renovated, you live overseas, the property isn’t mortgaged, or if the property is not registered with HM Land Registry.
Property Fraud
If someone is able to steal your identity and convince other people or organisations that they are you, there is also the possibility that they may try to sell or mortgage the property without your knowledge, or transfer it into their name.
You may be wondering where these fraudsters can find your personal details. In practice, they can scan your social media and online presence, and they can also get property ownership details, lender details, addresses and even signature samples from documents held by HM Land Registry (if your property is registered there).
How to Protect Your Property
There are several ways of making the above much harder for fraudsters.
The first is to sign up for the free HM Land Registry Property Alert service. This service monitors property records for certain activity that may indicate someone is trying to sell, change ownership of or take out a mortgage on the property. Typically, alerts are triggered when someone applies to change the register, such as for a sale or a new mortgage.
The second option is to ensure that your property is registered at HM Land Registry. Whilst this may seem counterintuitive based on the information above, if you register your property and you subsequently suffer financial losses as a result of property fraud, you may be entitled to compensation through the Land Registry indemnity scheme. It is also crucial to keep your contact details up to date.
The final option is to place a Form LL restriction on your property. The Form LL restriction is designed specifically to help prevent forgery and fraud. It stops the Land Registry from registering a sale or a mortgage on your property unless a conveyancer or solicitor certifies that the application was made by you. This will usually require you to meet them and provide identification, such as a passport, as proof of your identity. This makes it much harder for anyone to fraudulently transfer or mortgage your property.
Summary
Your property is the most valuable asset most of us have, so it is extremely important to make sure you protect yourself from unscrupulous fraudsters.