Landlords warned of fraud threat
Posted by Gary Winter
Buy-to-let owners are at particular risk of property fraud, says Land Registry
Taking steps to prevent fraud is a vital part of managing property for landlords, the Land Registry has said.
The organisation warned that owners of buy-to-let properties are among those most vulnerable to fraud, which could see criminals attempt to pass themselves off as the real owner and take out loans against the property.
"Properties most vulnerable to fraud are usually empty, tenanted or mortgage-free," it commented.
"Individuals at a higher risk of fraud include owners who are absent for whatever reason; for example because the owner may live abroad, buy-to-let landlords, the elderly not living in their properties because they may be in long-term hospital or residential care, and where a relationship has broken down."
The Land Registry has now issued a 'Top Tips' guide to help landlords and other vulnerable groups avoid being the victims of property fraud.
Most important is to make sure the property is registered, as this will ensure the owner is compensated if they do suffer a financial loss as a result of fraud, and once registered make sure details are kept up to date, said the organisation.
Furthermore, those who feel they may be particularly at risk can have a restriction entered on their property when they register it, which will help prevent forgery by requiring a solicitor or conveyancer to certify that the person selling or mortgaging the property is the true owner.
"Today's launch of our 'Top Tips' shows how important it is to let homeowners know what simple steps they can take to protect their property - one of which is now the ability for those at greatest risk to have a free restriction entered which might prevent their property from being targeted by fraudsters and stolen unawares," said Malcolm Dawson, chief land registrar.
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