The Land Registry has introduced a counter-fraud security measure for companies who own registered property and are concerned it might be subject to a fraudulent sale or mortgage.
This follows a successful pilot.
Tenanted, unoccupied or mortgage-free properties are known to be particularly vulnerable.
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.
Alasdair Lewis, director of legal services at the Land Registry, said: “Recorded incidents of forged transfers and charges are not restricted to individuals; corporate owners such as landlords of residential and commercial properties are targeted too. Since September 2009, we have prevented frauds on over 160 applications representing properties valued in excess of £70m.
“With fraud currently estimated to cost the economy £70bn annually, it makes sense to try and deter fraudsters wherever possible.”
A request by a company for a restriction can be made using Form RQ(Co). The restriction is designed to help safeguard against forgery by requiring conveyancers, for example a solicitor, to certify that they are satisfied the company transferring, leasing or mortgaging the property is the same company as the owner before any new sale, lease or mortgage is registered. They must also certify that they have taken reasonable steps to establish that anyone who executed the deed on behalf of the company held the stated office at the time of execution.
There is no Land Registry fee for companies registering this restriction for up to three titles. It follows the successful launch, three years ago, of a similar free restriction for private individuals who do not live in the property they wish to protect.