Title Fraud (Property)

Property title fraud occurs when a criminal uses forged or fraudulently obtained identity documents to pose as the owner of a property. They may then sell the property to an unsuspecting buyer, remortgage it to extract equity, or use the 'title' as collateral for loans. The real owner may be unaware until a mortgage default notice arrives, a stranger knocks on the door claiming ownership, or they check their title register.

Properties most at risk are those that are mortgage-free (no lender to spot irregularities), rented out (the owner is not resident), or owned by overseas or elderly individuals less likely to monitor correspondence. Fraudsters typically target properties in high-value areas where a quick sale or remortgage yields the most.

Land Registry authorities in the UK, US, and elsewhere have introduced fraud alerts and title insurance products. In the UK, HM Land Registry allows property owners to register for 'property alerts' that flag any application to change the register. Prevention also involves keeping contact details with the Land Registry current and using a solicitor who conducts thorough identity verification.