Money
Managing your money
ID checks to combat property fraud
A growing number of fraudsters are transferring property ownership into their names prompting the introduction of new identity checks for people gaining sensitive information, according to the Land Registry
The registry, which is a government body responsible for maintaining a record of who owns all the land in England and Wales, is bringing in checks to safeguard homeowners against becoming a victim of fraud.
It means that from March 3, anyone other than your solicitor doing any legal work on a property for for some transfers, leases and mortgage applications will be ID checked.
They will need to produce identification and also provide a signature and a contact address.
A spokeswoman for the Land Registry said: "We recognise that fraud is a problem and we want to make more stringent checks about who is dealing with sensitive information.
"It's important that we have some kind of audit trail to make sure that we know who is asking for this information, which by law, is to be made public. We constantly review what more we can do to deter thieves."
Fraudsters are attracted to properties because they can be sold and mortgaged to raise large amounts of money.
Important and detailed information about property ownership has to be made public by law, including the size of a mortgage, how much is outstanding and any other loans that have been secured on the property, as well as account numbers and, crucially, signatures.
Until recently, it was possible to download this sensitive information about homeowners from the Land Registry website.
In 2005 it went online and until last year, it was possible to view scanned documents at the touch of a button.
Last November the Registry buckled and announced it would limit the information available online in a bid to protect people from fraud.
Since November, documents such as mortgage deeds and leases are no longer available electronically.
Instead people who want to see or have copies of these documents will have to apply to the Land Registry in writing, providing signatures and contact addresses.
The Registry says it received 55 complaints of information having been obtained from its website for fraudulent purposes, which resulted in paying out some £12 million of compensation in the two financial years from 2005 to 2007.
Latest statistics show that the risk of fraud is still highest following a divorce, when a property is empty or bought to let, when the owner is abroad or absent, or when the owner is infirm or in a home.
* Written by Holly Thomas, deputy personal finance editor of the Daily Express and Sunday Express. Holly's opinions are her own and for general information only. Always seek independent financial advice.
