How to Protect Your Property from Fraud and Unlawful Transfers

A property is one of the most valuable assets you are likely to own, as well as being home for you and your loved ones.

But it is increasingly alarming at how easy it is to lose your property to fraudsters through mortgage fraud, identity fraud, fraudulent transfers, etc

Identity Fraud

This unfortunately happened to Mr Mike Hall in 2021

Mr Hall had left his property in Luton to work in north Wales. Unbeknown to him, someone had impersonated him and sold his property for £131,000. They also got pass solicitors involved in the conveyancing.

Mr Hall eventually restored his name rightfully on the title at the land registry in 2023. Unfortunately, a sham tenancy was then set up and tenants took up occupation of his property in 2023. Mr Hall finally managed to obtain vacant possession through the civil courts in 2025.

Fraudulent Property Transfer

What happens when a property is jointly owned and party B forges party A’s signature in a transfer to C (who is oblivious to the fraud)?

In the case of Ahmed v Kendrick (1987) it was held that only B’s equitable interest passes to C

Is the situation different if C knew about or was involved in the fraud?

This was the question which came up in the cases of Victus Estates (2) Ltd and others v Munroe and Benjamin v Victus Estates (1) Ltd and another (2021)

This time C was aware of the fraud and then charged the property to D (a bank).

The argument was whether the beneficial interest of A has passed to C so that D had acquired an equitable charge over A’s share.

In the first instance, the courts ruled against the bank on the basis that the transfer (form TR1) was a sham as the signature for B was forged.

The banks appealed and won. The court did not agree that the transfer was a sham and therefore void (despite the forgery) as the TR1 was a ‘conveyance’ as required by the Land of Property Act 1925.

They agreed that property rights could pass under an illegal contract (whether enforceable in its own rights or not)

B’s equitable interests remained with them and had not been transferred by the forged document so they were entitled to apply to rectify the legal title at the land registry pursuant to schedule 4 of the Land Registration Act 2002.

The Land Registry

In the HM Land Registry Performance Report (published 12 September 2024), they reported that

• 583 fraudulent registrations prevented since 2009
• 18,000 daily requests to update the register or create a new title

In 2023-24, £2.2m was paid out against 655 claims, compared with £3.5m and 627 claims in 2022-23.

The Land Registry relies heavily on professionals such as solicitors to prevent fraud as there are stringent requirements on them to check ID, source of funds and the verity of transactions

Prevention Measures

The Land Registry provides a guide with useful information on how to Protect your land and property from fraud.

One of the best ways is to sign up to get property alerts – this will alert you when someone tries to change the registry of a property

There is no fee and you can sign up to 10 properties

You could also register a restriction to prevent a sale or mortgage on a property unless certain criterias are met

You can register a restriction if you own a property but are not living there

Make sure your contact details on the property title are up to date

You could put in place insurance which provides cover for legal costs or losses arising from fraudulent transactions.

Ensure you use qualified and regulated professionals in any property dealings – if things go wrong there may be recourse against them under their professional indemnity insurance

Carry out regular checks on the property if you don’t live there and ensure it is secured if it is unoccupied.

Final Words

Fraud is evolving all the time and fraudsters are getting more and more sophisticated – so even with all the preventive measures above, you may still find yourself a victim to illegality or a scam.

In this unfortunate situation, you must act with speed. You need to seek the right advice from the right professional who can advise you on urgent steps that can be taken including an interim possession order against squatters, an injunction to prevent any dissipation and/or freezing of sale proceeds, and rectification of title at the land registry. If left too long, potentially squatters could obtain rightful title to the property by way of adverse possession.

Compensation can be sought against relevant parties (such as solicitors and the land registry) if it can be shown that there was fault on their part.

Property fraud and unlawful transfers can escalate quickly and require urgent legal action. Our Property Disputes team advises owners and co-owners on fraud prevention, Land Registry restrictions, title rectification, possession proceedings and compensation claims arising from fraudulent transactions. If you are concerned about potential property fraud or believe an unlawful transfer has taken place, contact our Property Disputes team for immediate legal advice on 0330 822 3451 or request a callback.