Required Reading - Avoiding property fraud
When is a property deal not an ideal deal? When the vendor doesn’t own the place… It happens more often than you might think. Mishcon de Reya’s Richard Anyamene and Adam Gross have some rather handy tips to avoid being another victim of property fraud.
Mishcon de Reya has worked for three victims of property fraud this year. One client visited a property he was renting out to discover a “For Sale” sign in the garden. He called the estate agent to explain that a mistake had been made, only to be told that the house had been sold. Another client purchased a property from someone who it believed was the legal owner of the property. Following completion, it advertised the property for sale at auction only to be informed on the day of auction that the vendors were not the true owners of the property.
Commonly, fraud is often perpetrated by third parties raising money on a property they do not own by persuading a lender to mortgage the property. However, it is also possible to sell property fraudulently.
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