Title fraud, mortgage fraud, impersonation and conveyancing fraud. Emergency applications to protect your title, Land Registry restrictions, rectification and compensation claims from the Land Registry indemnity scheme.
Property fraud is one of the most financially devastating crimes that can affect property owners — and it is on the rise. HM Land Registry reports thousands of fraudulent applications each year, with individual victims losing hundreds of thousands of pounds. Legal Merchant's specialist property litigation solicitors provide urgent, expert advice and take swift action to protect your title, reverse fraudulent transactions and recover your losses.
Property Fraud Is a Growing Threat. HM Land Registry blocked over £100 million worth of fraudulent property transactions in a recent year alone. Vacant properties, rented properties and unmortgaged properties are especially vulnerable. If you suspect your property has been targeted, contact our solicitors immediately — speed is critical.
Types of Property Fraud
Title Fraud (Identity Fraud)
A fraudster impersonates the registered proprietor of a property, often using forged or stolen identity documents, and uses conveyancing solicitors (often unaware of the fraud) to transfer the property or mortgage it. The proceeds are extracted and the fraud is only discovered when the genuine owner receives correspondence or tries to deal with their property.
Mortgage Fraud
Fraudsters obtain a mortgage on a property they do not own (often by impersonating the owner), take the loan proceeds and disappear. The lender subsequently discovers that the mortgage was registered against a property owned by someone who did not authorise the transaction — leaving the innocent owner with a charge registered against their title.
Conveyancing Fraud (Friday Fraud)
Also known as "Friday fraud" or "push payment fraud" — fraudsters intercept email communications between conveyancing solicitors and their clients, impersonate the solicitors, and redirect completion monies to a fraudulent bank account. Victims transfer large sums (often hundreds of thousands of pounds) believing they are paying their solicitor.
Forged Documents
Fraudulent transfers, mortgages, declarations of trust, wills or powers of attorney created using forged signatures or stolen identity. Forged documents can be used to change ownership, create mortgages or extract equity from a property. Handwriting experts and forensic document examiners are often instructed in rectification proceedings.
Solicitor Fraud
In rare cases, a solicitor or conveyancer is complicit in fraudulent transactions — misappropriating client funds, facilitating money laundering through property, or completing transactions they know to be fraudulent. Claims against dishonest solicitors and their professional indemnity insurers require specialist litigation expertise.
Vacant Property Fraud
Properties that are empty (holiday homes, overseas owners' UK properties, recently inherited properties, buy-to-let properties between tenants) are prime targets for title fraud — the owner is less likely to notice unusual correspondence or entries on the register. HM Land Registry runs a Property Alert service for at-risk properties.
Warning Signs of Property Fraud
Common indicators that your property may have been targeted by fraudsters:
You receive mortgage statements, solicitors' correspondence or Land Registry correspondence for a property you own — but did not apply for a mortgage
You stop receiving rental payments or utility bills for a property you own
You search the Land Registry register and find a transfer, mortgage or restriction you did not authorise
You receive a Land Registry notification (via the Property Alert service) of an application against your property
Tenants or neighbours report unfamiliar persons attending or occupying the property
You discover that identity documents (passport, driving licence) have been lost or stolen
During a conveyancing transaction, your bank account details or solicitor's details change unexpectedly via email
Immediate Steps to Take
If you discover or suspect property fraud, you should act immediately:
Contact our solicitors urgently — time is critical. The quicker action is taken, the better the prospects of preventing a fraudulent transaction from completing or reversing one that has already completed.
Report to Action Fraud — on 0300 123 2040 or at actionfraud.police.uk
Contact HM Land Registry directly — on 0300 006 0411 or at the fraud team email. Land Registry can place a hold on any pending applications.
Contact your bank immediately — if you have sent money to a fraudulent account, contact your bank's fraud team immediately using the 159 number. The faster you act, the greater the chance of recovering the funds.
Report to the SRA (Solicitors Regulation Authority) — if a solicitor is suspected of being complicit in the fraud
Legal Remedies for Property Fraud
Emergency Injunctions and Land Registry Applications
Where a fraudulent transaction is pending (not yet completed), our solicitors can apply urgently to HM Land Registry to object to the fraudulent application or place a hold on it. We can also apply to the court for an emergency injunction (without notice, i.e. without informing the fraudster) to freeze assets or prevent completion of a fraudulent sale or mortgage.
Protective Restrictions at HM Land Registry
A restriction is an entry on the title register that prevents any dealing (sale, mortgage, transfer) from being registered without compliance with its terms. Two key restrictions protect property owners against fraud:
Form RQ restriction — requires a conveyancer to certify that they are satisfied that the person who executed the document was the same person as the registered proprietor. Alerts the conveyancer to potential impersonation.
Form LL restriction — available to individuals who are not living in their property (i.e. private individual landlords and vacant property owners). Requires any application for registration to be accompanied by a certificate from a conveyancer that a specified form of notice has been given. More robust protection for at-risk properties.
We advise all property owners — particularly those who own vacant properties, rental properties, or properties abroad — to consider placing protective restrictions on their titles.
Rectification of the Register
Where a fraudulent transaction has already been completed and registered at HM Land Registry, the innocent owner can apply for rectification of the register — correcting the register to reverse the fraudulent entries and restore the genuine owner's title. Rectification is governed by Schedule 4 of the Land Registration Act 2002.
However, rectification may not always be available — in particular, if an innocent third party (a "proprietor in possession") has acquired the registered title in good faith for valuable consideration, the court has a discretion about whether to rectify. In that case, the defrauded original owner may be entitled instead to indemnity from HM Land Registry.
Land Registry Indemnity
Under Schedule 8 of the Land Registration Act 2002, a person who suffers loss as a result of a mistake in the register (which includes a fraudulently registered transaction) is entitled to be indemnified by HM Land Registry. Indemnity is also payable where rectification is not available because it would be unjust in the circumstances (e.g. because an innocent purchaser would be dispossessed). The amount of indemnity is calculated by reference to the value of the property at the time of the mistake (or at the time of the claim, whichever is lower). Our solicitors prepare and pursue Land Registry indemnity claims.
Claims Against Solicitors and Their Insurers
Where a solicitor or conveyancer was complicit in the fraud, or negligently failed to detect it, claims can be pursued against:
The fraudulent solicitor personally (and their professional indemnity insurer)
The SRA Compensation Fund — a fund of last resort for victims of dishonest solicitors where the solicitor is uninsured or the insurer is insolvent
The lender's solicitor, where the lender's conveyancer failed to carry out proper checks
Recovery of Proceeds — Tracing and Asset Freezing
Where fraud proceeds have been received by the fraudster, we can pursue:
Freezing injunctions (Mareva injunctions) — preventing the defendant from disposing of or dissipating assets pending judgment
Search orders (Anton Piller orders) — permitting entry to premises to inspect and preserve evidence
Proprietary claims — following the fraud proceeds into the hands of third parties who received them knowing of the fraud
Reporting to law enforcement — for criminal prosecution and confiscation proceedings under the Proceeds of Crime Act 2002
Protecting Your Property Against Fraud
Preventive steps every property owner should take:
Register for the Land Registry Property Alert service — free email alerts whenever an application is made against your property. Visit gov.uk/property-alert.
Place a restriction on your title — particularly if you own vacant or rented property. Our solicitors can arrange this quickly and cost-effectively.
Use a secure email address for conveyancing — and always verify bank account details by telephone (calling a number you trust, not one provided in an email) before transferring funds
Keep your solicitor and Land Registry informed if you change your contact address, particularly for properties you do not live in
Check your title register periodically — easily done through the Land Registry's online service at gov.uk/search-property-information-land-registry
Frequently Asked Questions
This is a classic case of title fraud and you must act immediately. Contact our solicitors, report to Action Fraud, and contact HM Land Registry's fraud team. Our solicitors will urgently apply to rectify the register to remove the fraudulent mortgage and, if a third-party lender has registered the charge in good faith, pursue a Land Registry indemnity claim on your behalf. We will also advise on reporting the fraud to the police and the SRA if a solicitor is involved. Speed is critical — do not delay.
Contact your bank immediately using the 159 number — the faster you act, the greater the chance of recovering the funds through the banking system's fraud recovery procedures. If your solicitor's email was compromised, the solicitor's firm may also have liability under their professional indemnity insurance. Our solicitors can advise on claims against the solicitor's firm, their insurers, and the receiving bank where it failed to implement appropriate fraud controls. The Payment Systems Regulator's mandatory reimbursement scheme for Authorised Push Payment (APP) fraud also provides a route to recovery.
Yes — under Schedule 8 of the Land Registration Act 2002, HM Land Registry must indemnify a person who suffers loss as a result of a mistake in the register caused by fraud. Where the register can be rectified (the fraudulent transfer reversed), indemnity is paid for any loss suffered in the meantime. Where rectification is not available (because an innocent purchaser would be dispossessed), the original owner is entitled to full indemnity based on the property value. Our solicitors prepare detailed indemnity claims and negotiate with HM Land Registry on your behalf.
Vacant and rented properties are particularly vulnerable. We recommend: (1) Register for the Land Registry Property Alert service — free email alerts for any applications. (2) Place a Form LL restriction on the title — this requires a conveyancer to certify proper notice has been given before any dealing is registered, making fraud much harder. (3) Ensure your UK address for service at the Land Registry is current and monitored. (4) Consider instructing a UK-based property manager who can flag any unusual activity. Our solicitors can arrange protective restrictions quickly and advise on the most appropriate level of protection for your portfolio.