Fraudsters are finding new ways to cheat people, and now they’re targeting what could be your most valuable asset: your home. A property scam known as title fraud allows criminals to fake ownership of your property, either selling it or taking out a mortgage in your name. The results can be devastating, but fraud awareness and prevention can protect you from falling victim.
Empty homes, rental properties, and homes without mortgages are particularly vulnerable to these scams. Overseas property owners are also at higher risk since they may not regularly monitor their assets.
What Is Title Fraud?
Title fraud involves scammers forging documents that make it appear as though they own your property. Once they establish “ownership,” they carry out one of two schemes:
- Selling the Property
Fraudsters advertise your home for sale, using fake identification to complete the transaction. They pocket the proceeds and disappear, leaving the rightful owner unaware until it’s too late.
- Taking Out a Mortgage
Fraudsters use the stolen identity of the actual homeowner to take out a mortgage on the property. They vanish with the cash, and the actual owner is left to face the debt.
Protecting Your Property
Fortunately, fraud prevention measures are available to safeguard your home against title fraud. One of the most effective tools is the HM Land Registry Property Alert Service, a free and easy way to monitor your property for suspicious activity.
- Sign Up for the HM Land Registry Property Alert Service
The service is free, quick to set up, and allows you to monitor up to 10 properties. Simply register your property’s address or postcode, and you’ll receive email alerts for any activity related to the title. For instance, if someone attempts to change the ownership details or register a sale, you’ll be notified immediately. You can then assess whether the activity is legitimate and take action if necessary.
- Consider Adding a Title Deed Restriction
For additional security, homeowners can restrict their title deed. This measure ensures that no sale or mortgage can be registered without the involvement of a solicitor or conveyancer who verifies the owner’s identity. While this adds an extra layer of protection, it also means you’ll need professional verification whenever you decide to sell or mortgage your property.
The Need for Fraud Awareness
Despite its simplicity, the Property Alert Service remains underused. Since 2022, registrations have increased by 26%, with 150,000 new homeowners signing up. However, this still represents just 3% of the UK’s 24.8 million properties.
Property experts are urging more people to adopt these measures. Olly Thornton-Berry, managing director of Thirdfort, explained: “With increasingly sophisticated methods of identity fraud, all properties are at risk.” Empty and tenanted properties, along with those without mortgages, are especially vulnerable to property scams.
Your Home at Risk
Certain types of properties are more attractive to fraudsters. These include:
- Vacant homes: An unoccupied house is easier to target without raising suspicion.
- Rental properties: Tenants may not be aware of fraud attempts, giving criminals more time to act.
- Unmortgaged properties: Homes without mortgages are often targeted because there’s no lender to detect unusual activity.
- Overseas-owned properties: Owners living abroad may not check for changes to their property title regularly.
Even if your property doesn’t fall into these categories, it’s still wise to stay alert. Fraudsters are becoming increasingly sophisticated, making it harder to detect scams until it’s too late. Your home is likely your most valuable asset, and protecting it should be a top priority.
Fraud prevention tools like the Property Alert Service and title deed restrictions offer a simple yet effective way to safeguard your property. Additionally, staying informed about property scams and title fraud is key to protecting yourself. By remaining vigilant, you can prevent fraudsters from exploiting your home and ensure your peace of mind.
What Can We Do?
While title fraud is relatively rare, its consequences can be devastating. Victims may face years of legal battles to reclaim ownership or prove that debts were fraudulently incurred. Fraudsters will always look for new ways to target homeowners, but you can stay one step ahead. By signing up for the HM Land Registry Property Alert Service and considering title deed restrictions, you can protect your home and financial future.
Fraud awareness is your first line of defence. Share this information with friends, family, and neighbours to help others stay protected. Together, we can reduce the impact of property scams and make it harder for fraudsters to succeed. Don’t wait until it’s too late—take action today to secure what’s rightfully yours.
