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mfg warns on land registry fraud
Published May 2008
mfg Solicitors is warning that new proposals by the Land Registry could open the door to internet fraudsters.
Property partner Chris Bovey said that the combination of new online access to documentation, and proposed rule changes on liability at the Land Registry, are likely to expose all those involved in property deals to greater risk from internet fraudsters.
Mr Bovey, office partner at mfg Solicitors in Bromsgrove, said that the online facilities, which are designed to facilitate access to mortgage deeds, titles, and other records, make it possible for individuals intent on fraud and forgery to break the law.
“Every firm has procedures to safeguard against fraud, but a Land Registry proposal would give the Land Registry indemnity against identity fraud.
“In the event of fraud the Registry would turn to the parties responsible for the property-related transaction to carry the can.”
The Land Registry is the government department responsible for registering land ownership in England and Wales.
It maintains that the Land Registration Rules, which cover many areas of law and practice, require it to ensure customers fulfil certain basic requirements to protect calls on the public purse.
The proposed rules would mean conveyancing firms had the obligation to verify the identity of all parties in a transaction whether or not they were acting for them.
Mr Bovey said: “We would have to verify that that the person selling or passing on the land was the registered proprietor, or had to right to become the registered proprietor.
“This does not fall within the compliance of our professional duty. It would involve an extension of our professional indemnity insurance to cover the Land Registry.
“Solicitors’ professional obligations to identify normally relate to their own client. The draft wording extends this obligation to identify a non-represented person or one for whom another firm acts.
“Where this all leads is to the conclusion that the Land Registry would no longer stand behind the official copy entries it issued and would not check that the seller was the actual registered owner, or the buyer the actual buyer.”
Mr Bovey, a member of the Law Society, has been with mfg Solicitors since 1981 and has more than 30 years' experience as a qualified solicitor on issues such leases, sale and purchase, commercial development and financial matters.
He is a founding board member of the Bromsgrove District Housing Trust and chairman of Bromsgrove Housing Initiative which is building affordable housing for local residents.
He has also carried out extensive work for the Spa Housing Association which currently manages more than 2,500 properties in Droitwich and the surrounding areas.
