The Law Society has issued an advice note on joint property and title fraud, with fraudsters increasingly targeting the properties of both individuals and companies.
Announcing the note, the Law Society said: “These attacks often include the presentation of forged registration or identity documents as part of HM Land Registry applications. HM Land Registry and the Law Society wish to bring these matters to the attention of the public and raise awareness.”
The joint property and title fraud advice note provides a practical guide for solicitors on some of the indicators of potential fraud in land transactions and registration of title, but does not to set a regulatory framework. The Society explains that, in view of the “rapidly evolving nature of title fraud”, the note cannot cover all types of fraud affecting title to land.
The Court of Appeal is expected to consider issues raised by the note in the next year, with appeals in Dreamvar (UK) Limited v Mishcon De Reya (a firm) and P & P Property Limited v Owen White & Catlin LLP scheduled for February 2018. However, the Society felt that it was important that the note be publicised to solicitors now in order to increase awareness of indicators of potential fraud.
The Society adds that the note does not specify any professional duties in relation to fraud or dealing with it, expressing the hope that a future decision in the Court of Appeal will provide greater certainty in those respects.
Describing the contents of the note, it says: “Fraud prevention and detection should not be approached on a ‘tick box’ basis although a checklist might be appropriate. Fraud methods vary and evolve continually, and practitioners should diligently look out for anything which may be unusual or suspicious which may point to possible title fraud. Appropriate further investigation or queries should be raised in such circumstances.
“Practitioners should look at each transaction as a whole. It will rarely be the case that one factor alone will betray a fraudulent transaction. In most cases it is a matter of looking at all aspects of the case together and taking an informed view on the likelihood of fraud and the appropriate measures to be deployed to guard against it.”
Owen Talfan Davies, partner in the real estate litigation team at Fieldfisher, said: “We welcome the publication of this latest guidance, which builds upon the earlier and detailed guidance provided by the Law Society and Land Registry.
“As with the earlier guidance, all practitioners should ensure they are aware of the terms of this latest guidance to ensure fraud is detected and avoided.”
To send feedback, e-mail jess.harrold@egi.co.uk or tweet @jessharrold or @estatesgazette
