What does property fraud offer?
You might receive a brochure in the post
offering you a course on how to become a property
millionaire, or you may be invited to attend a
free presentation on making money from property
investment. Both might turn out to be a property fraud and you may
never see your money again.
A variation is buy-to-let fraud, where
companies offer to source, renovate and manage properties, claiming
good returns from rental income. In practice, the properties are
near-derelict and the tenants non-existent.
How does property fraud affect me?
You attend a free presentation about making
money from property investment. The fraudsters may persuade you to
hand over money to sign up to a seminar or course
promising to teach you how to make money dealing
in property.
You might be offered the opportunity to buy
properties that have yet to be built at a
discount. You will be asked to pay substantial joining
fees that you may lose, and you may end up with no
property.
You might think property investment is a fast way to get rich
quickly, so you invest some, maybe all, your hard-earned
savings.
What you don't know is that the land is either agricultural or
derelict. In many cases, it is unsuitable for
development, or is bound to have planning permission
refused.
As a result, you may lose all the money you
invested.
What you should do
- Be very wary of mail solicitations, no matter
how good they look. Check out the company first. For example: does
it have a proper street address and landline number?
- Ask questions about the course. Ask for
references from people who've taken it and talk to them. Don’t just
speak to one or two people, but several
- Never make investments without thorough
research. Find out where the land is. View it before
parting with your money. Ask questions locally about its history.
Discover whether planning permission has been applied for or
granted. If not, what are the prospects of winning planning
permission?
- Don't invest until you see detailed plans for
the site’s development.
- Contact the police, Consumer Direct (08454 04
05 06), or the Financial Services Authority.
Always make sure you have copies of all paperwork about the
transactions and the course, as well as notes of any phone
conversations.
Additional information
If you aren’t living in the property you rent out, it’s
important to keep Land Registry updated of your contact address.
This helps to reduce the risk of property fraud occurring. Up to
three addresses are allowed including email addresses, addresses
abroad and the address of someone you trust. You can find out more
on the
Land Registry website