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Property title fraud costing Land Registry millions

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
09/03/2017

A sharp rise in cases of property title fraud are costing the Land Registry millions of pounds each year.

Data obtained through Freedom of Information requests by insurance provider Titlesolv showed that the number of claims had risen sharply since 2012.

It said despite increased efforts to combat fraud, almost £10m worth of compensation claims were received by the Land Registry last year – all due to fraud or forgery.

The average value of each claim is £168,900, the firm said.

The Land Registry – the government department responsible for registering land and property ownership in England and Wales – has paid out an increasing number of claims. Last year 86% of all claims were settled, this compares to 78% in 2012.

It is the responsibility of the Land Registry to check an owners’ claim to a property when a title is registered. Mortgage lenders and others then check this record before approving any loans, in order to confirm the owner’s identity.

Chris Taylor, chief executive of Titlesolv, said: “Despite best efforts, significant amounts of money continue to be lost each and every year due to fraud and forgery of property title deeds, with the Land Registry bearing the brunt of these costs. This is not likely to change anytime soon as many of the issues created pre-recession still lie dormant.

“If interest rates go up, and more mortgages fall into arrears, the Registry is likely to face another wave of claims as defaults tend to reveal or highlight allegations of fraud. If those mortgages become unenforceable, the Registry – and the public purse – are vulnerable to claims of negligence.

“Fraud is not something that can be easily detected, so ultimately the responsibility falls on all parties – Land Registry, solicitors and mortgage lenders alike – to be as vigilant as possible and to collaborate even more to detect the signs earlier.”


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