When you’re buying property, there’s a lot to think about. Your mind might be focused on arranging a mortgage, finding a professional mover, or navigating legal issues. So, you may be more likely to overlook the red flags that could indicate a scam than you usually would.
With large sums and valuable assets changing hands, property transactions are attractive to scammers. In some cases, when fraud has been committed, it’s impossible to get back the assets you’ve lost. As a result, being aware of the warning signs and taking a cautious approach when you’re purchasing property could be worthwhile.
Here are three scams you need to be aware of during a property transaction.
1. Property title fraud
The title of your property is a paper document that shows the chain of ownership for land and property.
In this scam, a fraudster attempts to acquire ownership of the property either by impersonating you or using a forged document. They might then be able to transfer the property to their name or sell it.
You’re not only at risk of property title fraud when you’re buying a home, but anytime you’re a homeowner. You’re at particular risk if you don’t live at the property or are away for extended periods.
Ensuring HM Land Registry can contact you is one simple way to reduce the risk of property title fraud from occurring. If an application regarding your property is received, HM Land Registry will attempt to contact you. Checking your details are up to date could mean you’re alerted to a potential scam as soon as possible.
2. Impersonation fraud
When you’re buying property, you’ll often need to engage the services of professionals, such as a solicitor or surveyor.
Sadly, some criminals pose as professionals to encourage you to unwittingly provide information, including sensitive details, that they can then use to access your assets. In some cases, a criminal may use the details of a legitimate firm or individual to gain your trust.
While it can seem like a time-consuming task, spend some time checking that the people you’re working with are who they say they are. Do they have reviews from previous clients? Are they registered with a professional body?
If you’re unsure if the person you’re speaking to is legitimate, use the contact details listed on a professional register or the company’s website to contact them directly to check. Genuine professionals will understand why you’re being cautious and could offer you peace of mind.
3. Payment diversion fraud
You’re likely to transfer large sums of money to your solicitor when you’re buying a property, and scammers have been known to hack emails to encourage you to send them the money instead.
Your solicitor will usually provide you with their bank details when you first start working with them. If these have changed, it’s likely to be a scam.
Take note of the communications you receive from your solicitor. Does the tone or style of the messages change? Are the documents you receive professional-looking, with a letterhead and the correct details, like the phone number and address of the business?
Even if you just feel unsure, contact your solicitor to check the information before you send the money. A few minutes on the phone could prevent you from losing thousands of pounds, and, again, your solicitor will understand why you want to double-check the details.
Could you benefit from advice from a mortgage broker? Please get in touch
If you’ll be taking out a mortgage to purchase your property, a mortgage broker could help you find a deal that’s right for you, potentially save you money over the long run, and even be on hand if you’re worried you’ve been targeted by a scam. Please get in touch to find out how we could work with you.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
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