Fraudulent property purchase – How do you guard against this?

by Readers Question

3 years ago

Fraudulent property purchase – How do you guard against this?

Make Text Bigger
Fraudulent property purchase – How do you guard against this?

If I buy a property and it turns out that the property was fraudulently sold without the owners knowledge ie. son impersonating as father or tenant impersonating as the owner with a fake passport and driving licence do I lose my money for purchasing such a property?fraud

I asked my solicitor about this and it seems they think I would be and it would be up to me to recover the money from the fraudster. The solicitor who did the transaction would not be liable under their indemnity policy to pay out as long as they checked the identity (passport) and proof of address. But as my solicitor mentioned to me they have no idea what a fake looks like so this type of fraud is not difficult to perpetrate.

Has anyone here got any ideas how to safeguard against this? My understanding would be that even if I bought the property with a 85% loan, I would still be liable to pay the lender back their money owed.

Appreciate any help that anyone can give.

Many thanks and have a nice day all.

Peter



Comments

Neil Patterson

3 years ago

Fortunately Peter I can tell you that this is quite rare occurrence. I have worked in the mortgage industry for over 20 years and been involved with or seen over 100,000 transactions and this has never happened.

However I have been told third hand of this type of fraud. All the major lenders have large sophisticated fraud departments who are probably a much more reliable check and balance than the solicitor taking proof of ID.

Have you seen or experienced anything recently that would give you cause for concern?

Joan Keeley

3 years ago

Reply to the comment left by "Neil Patterson" at "10/08/2015 - 10:00":

My LPA Receivers 'sold' five of my properties and would have 'sold' the rest if I hadn't taken them to court and proved the bank had conferred the power of sale in breach of the mortgage deed! They have SO FAR got away with it as the Land Registry, although admitting it made an error in accepting the transfers on two of the properties, said the fact that the LPA Receivers had signed the contracts fraudulently was nothing to do with them and they couldn't get involved. The bank completed the transfers on the other three properties.

I believe the Land Registry and bank are complicit in a fraudulent act.....I would be pleased to know others views on this.

The Land Registry it seems, is yet another institution not protecting us in the way it should!

Did the Court order the Register to be 'rectified'? This is a power open to it if it found that the entry making the transfer should not have been made.

Mark S

Joan Keeley

3 years ago

Reply to the comment left by "Mark Smith (Barrister-At-Law)" at "10/08/2015 - 12:28":

Unfortunately, I had to act as litigant in person. I originally applied for an injunction to prevent the LPA Receivers attempting to sell anymore of my properties as I had discovered that the bank had conferred the power of sale in error and therefore, not comprehending the bigger picture, I did not take my particulars of claim far enough. So the matter of the properties previously 'sold' by the LPA Receivers was not considered by the judge.

I am kicking myself now because I realise I should have capitalised on the situation but this is where litigants in person are at such a disadvantage but they have bled me dry turning an alleged arrears of £18,500 and leaving me with no property into a £328,000 debt!

Could you send me the court papers and orders?

I'll gladly have a look.

Judges are obliged to help LiPs (as are opposing lawyers) to ensure they don't make any avoidable errors.

Laura Delow

3 years ago

Although too late for this case, I would strongly suggest every landlord register their properties with the Land Registry for possible fraud alerts (you're allowed 10 properties per landlord free, so if a couple - up to 10 each & if you own more than this, use kids names etc). Every time something is logged/registered against your property, you get an email alert with the name of the person/company trying to sell/lodge an interest in your property & a number to call if you think it's fraudulent. https://propertyalert.landregistry.gov.uk;

Joan Keeley

3 years ago

Reply to the comment left by "Mark Smith (Barrister-At-Law)" at "10/08/2015 - 13:00":

Thank you, yes I will email the papers to you

Joan Keeley

3 years ago

Reply to the comment left by "Mark Smith (Barrister-At-Law)" at "10/08/2015 - 13:00":

Thank you, yes I will email the papers to you

Joan Keeley

3 years ago

I did register my properties with the Land Registry for notification of applications to change the register but they didn't notify me. It seems that LPA Receivers and banks do as they please and nobody questions them, not even institutions that a supposed to protect everybody

Peter Johnson

3 years ago

Reply to the comment left by "Neil Patterson" at "10/08/2015 - 10:00":

Hi,

About 62 cases a year happen and just wondered if an indemnity was possible? This type of fraud is really not that hard to do and you only need to Google it to see that it is on the increase.

I know it is rare but it is growing and can happen....

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

End 'Tax Breaks' for landlords says Tory think-tank!