![\"property](\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2015\/06\/iStock_000017413531_Large-Property-Fraud.jpg\")
It\u2019s every landlord\u2019s worst nightmare.\u00a0 You\u2019re happily renting out your property to someone you believe to be a genuine tenant, only to discover the tenant is a criminal, has stolen your identity and sold your property using fake documents.<\/p>\n
It\u2019s a fraud known as \u2018property hijacking\u2019 or \u2018house hijacking\u2019 and it\u2019s becoming a serious problem.\u00a0 In 2020\/21 The Land Registry paid \u00a33.5m in compensation to victims of different types of property fraud, (of which this is just one example), so this crime can happen to anyone.<\/p>\n
Given the high value of property in London<\/a>, second homes and properties that are rented out in London are sadly, top targets for fraudsters<\/p>\n Properties without loans or mortgages are the prime targets as there\u2019s no bank involved to check and so the fraudster only needs to work with a lawyer who will naturally identify the fraudster but won\u2019t need to verify anything with a bank.<\/p>\n Landlords<\/a> need to take particular care as they are allowing an individual to live in their property who they don\u2019t know personally, making them vulnerable to property fraud and money laundering in the UK.\u00a0 And those with second homes or holiday homes that are often vacant must be careful too as again, fraud can be harder to detect quickly.<\/p>\n Fraud isn\u2019t usually discovered until the real \u2018owner\u2019 comes to their property or realises they are no longer receiving rent and questions \u201cwho the people living there are?\u201d or \u201cwhere\u2019s the rent?\u201d.\u00a0 And sadly, the speed with which money is transferred around the world, by this time, the money \u2013 and the fraudsters \u2013 are long gone.<\/p>\n In 2015, Penny Hastings, (wife of historian Sir Max Hastings) found her investment property in London had been \u2018sold\u2019 without her knowing by a criminal who had changed her name by Deed Poll to \u2018Penny Hastings\u2019.\u00a0 The criminal \u2018sold\u2019 the property to an innocent buyer using fake documents, with the fraud only discovered when the buyer had received the keys.\u00a0 The buyer lost \u00a31.3m which was whisked away to an overseas bank account, never to be seen again.<\/p>\n While the situation is resolved with: However the stress, hassle and legal costs are enormous.\u00a0 The situation is incredibly upsetting for all involved but especially for a buyer who may have sold their original home to move into their dream home which in effect they don\u2019t really own and are left to go back to the drawing board seeking a new home to move into!<\/p>\n Property hijacking has become more common since the pandemic started, partly because many services are now carried out online without any human interaction, but also because many people haven\u2019t been living in their own property during lockdowns, instead moving in with parents or friends, leaving their homes vacant.<\/p>\n The BBC recently reported on a case concerning a woman who found that a Lasting Power of Attorney had been granted, allowing a fraudster called \u2018Julie\u2019 to take over her financial affairs and sell her flat.\u00a0 Thankfully, the woman was warned by the building\u2019s freeholder that someone had tried to sell her flat.\u00a0 The solicitor employed to sell the property also became suspicious, as documents contained inaccuracies.\u00a0 Thankfully the sale was stopped.<\/p>\n Read the full story here \u00a0Property fraud: ‘My fake sister tried to steal my home\u2019 – BBC News<\/a><\/p>\n If you let a property to a new tenant, there are several ways to protect yourself \u2013 the first is thorough tenant referencing.<\/p>\n Accurate referencing is complex, so at Benham and Reeves<\/a>, we use an independent, highly experienced tenant referencing company to carry out necessary checks \u2013 they know exactly what to look out for to catch out criminal intent.<\/p>\n Unbelievably, there are websites providing fake documents including passports, driving licences, bank statements and utility bills which to the untrained eye can be very hard to detect.\u00a0 Our referencing company tells us they see at least two applicants a week supplying false information but they have robust systems in place to spot fake documents.<\/p>\n To see examples of some of the fraudulent tenant referencing we\u2019ve prevented, see our blog Fraudulent buy-to-let rental applications skyrocket<\/a><\/p>\n There are other measures you can take, particularly if you are referencing a new tenant yourself (although we would strongly recommend against referencing yourself!).<\/p>\n When a tenant signs a rental agreement with you, a couple of weeks later, check they have actually moved into the property.\u00a0 Fraudsters are unlikely to move in.\u00a0 But even if they have moved in, carry out regular insp3ctions \u2013 we recommend attending a property every 3 months.<\/p>\n Be wary if you are presented with a brand new passport as ID.\u00a0 It could be fake so ask to see their old passport too.<\/p>\n Always apply for references yourself, don\u2019t accept ones handed to you by a new tenant \u2013 eg check the number for their employer on the company website and call them to check.<\/p>\n Every month, check your credit score with a credit agency such as Experian to warn you of possible identity theft.<\/p>\n Let your property through a professional estate agent<\/a> with a lettings department<\/a>, not just an agent who \u201csays\u201d that do lettings. Instruct an agent that is a member of ARLA Propertymark<\/a> who have a strict code of conduct and guidelines for best practice and compliance.<\/p>\n Prevention is better than cure and we have introduced a new service for our clients to protect your property. If \u00a0you are looking for a letting agent to help manage your property<\/a> and\/or need advice about protecting your buy-to-let<\/a> or rental investment, get in touch.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" It\u2019s every landlord\u2019s worst nightmare. You\u2019re happily renting out your property to someone you believe to be a genuine tenant, only to discover the tenant is a criminal, has stolen your identity and sold your property using fake documents.<\/p>\n","protected":false},"author":5,"featured_media":4787,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[444,443,451],"tags":[],"class_list":["post-20631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-advice","category-landlords","category-london-property-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/comments?post=20631"}],"version-history":[{"count":11,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20631\/revisions"}],"predecessor-version":[{"id":26926,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20631\/revisions\/26926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media\/4787"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media?parent=20631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/categories?post=20631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/tags?post=20631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Property Owners without debt are the most vulnerable to property fraud<\/h2>\n
How does a property hijacking fraud operate?<\/h2>\n
![\"property](\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2019\/09\/fraud-prevention-3188092-300x187.jpg\")
With property hijacking, a criminally minded person rents a property using fake documents, then changes their name by Deed Poll, adopting the landlord\u2019s name which is on the Land Registry.\u00a0 With a new \u2018name\u2019 and fake documents, the fraudster puts the property on the market with an estate agent. \u00a0When a buyer is found and their solicitor begins the conveyancing process, they will enquire about the title of the property.\u00a0 But now the fake \u2018owner\u2019s\u2019 name matches that of the genuine owner and given how trusting most people are, discrepancies are all but impossible to spot.<\/p>\n
\n– the Law Society or the lawyers\u2019 insurers covering the substantial costs
\n– the property owner immediately gets their property back into their name (as they would if a car was stolen and found by the police \u2013 it would be returned to the rightful owner)<\/p>\nLockdowns have made property owners even more vulnerable<\/h2>\n
How to avoid UK property fraud<\/h2>\n
Tenant referencing \u2013 spotting the fakes<\/h2>\n
Be vigilant<\/h2>\n
Protect your land and property from fraud<\/h2>\n