Fraud Alert
Holiday rentals, Home and property purchase and property take-over fraud.
Renting a villa or flat as a holiday let or more permanent home having found the accommodation over the Internet is convenient: but fraudsters place bogus adverts. These adverts may show genuine properties, and the fraudsters may even invite you to view a property in person that they do not own.
It may also surprise you that people may have their houses “stolen” where the title deeds at the Land Registry are changed and the home re-mortgaged or even sold on.
Don’t be tempted to tell lies when you buy a property - your liberty is at risk as well as your home.
Holiday flat and villa rental fraud
- Check the web sites, many private owners have their own sites, and classified adverts on other sites may be legitimately used.
- Most advertising sites cannot guarantee the authenticity of the advertiser or the property for let.
- The safest sites are those that are well established specialist sites which offer some form of protection, which may include insurance and guaranteed refunds.
- Check the feedback and other information search other sites for the same premises.
- Some mainstream travel companies have holiday home operations and offer package holidays.
- Use Association of British Travel Agents (ABTA) members if possible. Follow the ABTA code of conduct. Travel Trust Association members are protected if the member ceases to trade.
- Direct booking companies put you directly in touch with the home owner/property manager. Ask the advertising company what checks are made.
- Paying by credit card gives the protection of s.75 Consumer Credit Act 1974. Pay using a secure website, giving details over the phone or by email is not advisable, especially if they ask you for the 3 digits of the back of the card.
- Paying by Cheque or bank transfer is also risky. Never use Money Transfer to send money to a stranger.
- Never contact an owner outside of the systems the site has in place - you will be open to fraud.
- Supplier Failure Insurance is available however this may not pay out in the event of a fraud. Some companies offer top up insurance policies to cover these risks.
Application Fraud
Exaggerating income or making false statements in order to borrow more money is Fraud.
- Don’t be tempted to provide fake paperwork, such as doctored payslips, or false references.
- Beware of complicit professionals who support exaggerated applications in order to generate business.
- Exaggerated property valuations in order to obtain bigger loans and ‘cash back schemes may be illegal.
- Other mortgage frauds are more sophisticated and may implicate the unwary in criminal networks.
Property Takeover Fraud
Taking over a property by fraudulently changing the property deeds/title is becoming more common. This often happens when the property is owned outright and the property is rented out, or by being ‘squatted in’. The owner may be deceased or the owner’s identity assumed in order to carry out the fraud. This also may involve falsifying Land Registry data.
Property Ownership Fraud
Your property is probably your most valuable asset. As such, it can be an attractive target for fraudsters, which is why you need to do what you can to protect your ownership.
Land Registry is a government agency that maintains the register of property ownership in England and Wales. If your property is registered, making sure they can contact you will provide you with better protection against fraudsters.
What is property fraud?
Property fraud can happen in many ways. Fraudsters may attempt to acquire ownership of a property either by using a forged document to transfer it into their own name, or by impersonating the registered owner. Once they have raised money by mortgaging the property without the owner's knowledge, they disappear without making repayments leaving the owner to deal with the consequences.
Who is at risk?
In particular, fraudsters may target properties:
- owned by a landlord, such as a buy-to-let owner or property developer
- where the owner lives somewhere else for all or part of the year
- where the owner is in temporary or long-term residential care
- where the owner has died and the property is held in trust
- which no longer have a mortgage.
How to protect yourself
- Make sure that Land Registry can contact you wherever you live. This means giving them your up-to-date contact address and letting them know whenever it changes. This is because they may need to write to you when they receive an application regarding your property. You can have up to three addresses on your register.
- If your home is unregistered, then it is important to look after the title deeds which show the ownership of property. If these are lost, stolen or damaged this could cause problems over the ownership of a property. If you have your deeds keep them securely stored. Your bank or a solicitor may be a sensible place to keep them.
More information on Property Fraud.
The following Land Registry guides are recommended.
- How to safeguard against property fraud
- Keeping your address for service up to date
- Changing your name in the Register
Note that there are several other sites offering advice and access to the land registry documents. These sites may charge a premium, as much as £10 more for a document, if you use them to download documents that are available from the official government site.