Goldsmith called on brokers following the Land Registry’s recent launch of a fraud hotline for homeowners who fear their property might have been fraudulently sold or mortgaged.
Goldsmith said: “This is a laudable initiative but it only seeks to address the problem of fraud rather than finding ways of overcoming or avoiding the problem altogether.
Whilst early detection is very helpful in these situations and so having access to a helpline to raise concerns as soon as they are identified can only speed along investigations this helpline doesn’t afford any protection to the homeowner.”
Those most vulnerable to fraud are homeowners with empty, tenanted or mortgage-free properties and they can gain a significant measure of protection by registering a restriction.
A restriction, which is entered into the register at the Land Registry, prevents the registration of a transfer, mortgage or discharge unless a conveyancer has certified that the person who has signed the deed is the same person as the true owner.
Goldsmith said: “I appeal to all brokers to highlight this opportunity for protection to their clients.
“This will not only safeguard the client’s financial interests but also help all in the mortgage industry by strengthening the fight against fraud!”
