Property fraud is a growing concern across England and Wales. Whether involving identity theft, forged documents, unauthorised transfers, or fraudulent mortgage applications, the consequences can be devastating for property owners and buyers alike. Fraudsters often target high-value properties, homes that are unregistered, or properties that are vacant or tenanted, making vigilance and prompt legal action essential.
At Blackstone Solicitors, we help clients navigate the complex and often distressing landscape of property fraud. In this article, we explore how property fraud occurs, how to identify it, and the legal process for resolving such cases.
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For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of Property Litigation, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Understanding Property Fraud
Property fraud occurs when someone dishonestly gains an interest in a property or interferes with the true owner’s rights for personal gain. Common examples include:
- Impersonation fraud: A fraudster poses as the legal owner to sell or mortgage the property without consent.
- Forged documents: Fake signatures or documents are submitted to the Land Registry to change ownership or create legal charges.
- Mortgage fraud: False information is used to obtain a mortgage against a property, often without the owner’s knowledge.
- Hijacking conveyancing: Criminals intercept emails or falsify correspondence during a property transaction to divert funds.
Whether you are a victim of property theft or a buyer who has unknowingly purchased fraudulently transferred land, understanding the legal route to resolution is vital.
Signs You May Be a Victim of Property Fraud
There are several red flags that may indicate property fraud:
- You receive unexpected legal documents concerning a property you own.
- Tenants or neighbours report suspicious activity at a property you are not currently occupying.
- Your property is no longer registered in your name according to HM Land Registry records.
- You are denied access to property you legally own.
- Mortgage lenders contact you about loans you did not authorise.
If any of these circumstances arise, immediate legal advice is essential.
Initial Steps: Acting Quickly and Gathering Evidence
Time is of the essence in property fraud cases. The earlier you act, the greater the likelihood of recovering the property or mitigating losses.
- Confirm the Fraud
Start by checking the Land Registry’s title register for the property. This can reveal:
- Whether ownership has changed
- If any new charges or restrictions have been registered
- The details of the alleged transferee or mortgagee
You may also contact the Land Registry’s Property Fraud Line or Property Alert Service to investigate suspicious activity.
- Notify the Land Registry
Once fraud is suspected, notify HM Land Registry immediately. They may place a restriction on the title to prevent further dealings while the issue is investigated. In serious cases, the Land Registry may:
- Flag the title as disputed
- Cancel pending applications
- Cooperate with the police or solicitors involved
If a fraudulent transaction has already been registered, the Land Registry may still rectify the title in certain circumstances, depending on the outcome of legal proceedings.
- Instruct a Solicitor
Due to the complex interplay of criminal law, property law, and civil litigation, professional legal representation is critical. At Blackstone Solicitors, we provide prompt and strategic advice to:
- Investigate the fraud and advise on legal remedies
- Liaise with the Land Registry and other stakeholders
- Issue proceedings for rectification or compensation
- Coordinate with law enforcement where applicable
Legal Remedies for Property Fraud Victims
The route to resolution depends on the nature of the fraud and its impact. Remedies may include:
- Rectification of the Register
Under Schedule 4 of the Land Registration Act 2002, the court has the power to order the rectification of the register if a mistake has occurred and it would be just to do so. Rectification is the most common remedy sought in cases of forged transfers or unauthorised mortgages.
However, rectification may not be automatic, especially where an innocent third party (such as a buyer or lender) is involved. The court will weigh:
- Whether the third party was in good faith
- Whether the fraudster’s actions amount to a mistake on the register
- Whether the victim has a right to be restored as legal owner
- Civil Claims Against the Fraudster
Where the fraudster can be identified, civil proceedings may be issued to recover losses, including:
- Injunctions to prevent further dealings with the property
- Freezing orders to preserve assets
- Damages for financial loss, including lost rental income or legal fees
In practice, fraudsters are often difficult to trace or have limited assets, so this may not always be the most effective route. Nevertheless, it is an important option, particularly where the fraudster is known to the victim or is part of a wider scheme.
- Professional Negligence Claims
In some cases, negligence on the part of conveyancers, estate agents, or mortgage brokers may have enabled the fraud. For example:
- A solicitor failed to verify the identity of a seller properly.
- A conveyancer missed signs of forged documentation.
- A surveyor failed to notice discrepancies in title records.
Victims may have grounds to bring a professional negligence claim where such failings contributed to the fraud.
- Compensation from the Land Registry
If the fraud results in a loss caused by a mistake in the register, the Land Registry may be liable to pay indemnity compensation. This is particularly relevant if rectification is not granted due to the presence of an innocent third party.
Compensation may include:
- The current market value of the property
- Legal and other associated costs
- Loss of rental income
Strict criteria apply, and claims must be carefully documented and substantiated. We assist clients with preparing and submitting claims to maximise the likelihood of recovery.
Criminal Proceedings and Police Involvement
While the civil courts deal with the recovery of property and compensation, fraud is also a criminal offence. Victims should:
- Report the fraud to the police and Action Fraud (the UK’s national fraud reporting centre).
- Obtain a crime reference number.
- Cooperate with investigations and provide any relevant evidence.
Criminal prosecution may result in conviction and sentencing of the fraudster, but does not in itself restore property rights. This is why civil proceedings are often necessary in parallel.
Preventative Measures for Property Owners
While no system is entirely immune to fraud, property owners can take steps to reduce their risk:
- Register your property with HM Land Registry (if unregistered).
- Sign up for the Property Alert Service, which notifies you of changes to the title.
- Place a restriction on your title requiring a solicitor to certify any transaction.
- Keep your contact details with the Land Registry up to date.
- Be cautious when renting out, leaving property vacant, or working with unfamiliar conveyancers.
At Blackstone Solicitors, we also advise clients on proactive measures to protect high-value or vulnerable properties from fraudulent activity.
Why Choose Blackstone Solicitors?
With extensive experience in property litigation and fraud matters, Blackstone Solicitors offers expert representation in:
- Disputes over fraudulent transfers, mortgages, and registrations
- Urgent court applications, including injunctions and freezing orders
- Claims for rectification, damages, and Land Registry indemnity
- Professional negligence claims against conveyancers or surveyors
- Liaising with law enforcement and regulatory bodies
We act swiftly and strategically to preserve your interests, recover property where possible, and ensure maximum compensation where recovery is not achievable.
How we can help
We have a proven track record of helping clients deal with the legal aspects of Property Litigation. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting. You can read more about the range of property litigation services we offer by clicking here: https://blackstonesolicitorsltd.co.uk/commercial-litigation/
How to Contact Our Property Litigation Solicitors
It is important for you to be well informed about the issues and possible implications of Property litigation. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Commercial Property solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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