Property law loophole spawns home theft

09/03/2011

Criminals are taking advantage of changes in the law to transfer the ownership of land and property to themselves, the Daily Express reports.

It is apparently quite easily done, as since the abolition of land certificates, all property titles in England and Wales are published online.

In a shocking revelation, it seems many home owners may not even be aware that anything untoward has taken place.

Victims of this crime may not find out that a fraudster, who has impersonated them in a form of identity theft, has stolen the rights to their property until it is too late.

Solicitor Patrick McCloy told the Daily Express: "I have come across four cases of this in the last year alone,” adding that he believed the problem was “substantial” and growing.

By changing an owners’ address for official correspondence, a fraudster can take out a mortgage and even sell the property.

The most likely victims are the elderly, particularly those in care homes or hospital, homeowners who live abroad, absent landlords and people owning properties outright.



People in these categories often own properties without a mortgage, making them easier targets.

In 2009/10, the Land Registry, the state body which holds all records of UK properties, paid £4.9 million for 53 claims arising from fraud and forgery, ten times more than the £491,656 for the 15 claims that were made in 2004/05.

According to the Express, the scam typically sees fraudsters take out a mortgage using someone else’s identity. They put some of it into an account to make some repayments and pocket the rest.

The lender only finds out when the bank account runs dry, with the real property deed holder left liable for the debt.

In 2009 Simon and Christine Rowntree thought selling their large family home in Birmingham to move to a smaller property would be straightforward but to their amazement, the Land Registry told them they no longer owned their house.

Christine told the Express: “We couldn’t believe it. We didn’t have a mortgage, we owned it outright. It was just unbelievable.”

Trevor Guy, who owns land in Manchester, had his property stolen by fraudsters who took out a mortgage for more than £100 million.

He took the case to court, but while the court did not dispute he was the rightful owner, he was deemed liable for the debt charge run up by the crooks. Trevor Guy continues to fight his case.

Ben Francis, of estate agents Sullivan Thomas in Parsons Green, west London, recently foiled a fraud when a tenant warned him that the flat he was renting had been “sold” by a fraudster.

Wiltshire solicitor Patrick McCloy has teamed up with other lawyers to launch Gatekeeper Protection, a service designed to guard against theft by placing restrictions against an owner’s title.

The Land Registry website offers guidance and reassurance that it will compensate victims, but there is no guaranteed entitlement.

The Land Registry has said that increased investment in counter-fraud has already prevented fraud attempts of an estimated £20 million.

Tags; Current UK Economy, Housing Debt and Bills,

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