Fraud in conveyancing transactions after P&P and Dreamvar

The recent Court of Appeal judgment in the P&P and Dreamvar cases raised concerns about fraud in conveyancing transactions.

This is a reminder of the things you may want to consider to help identify and prevent a fraudulent transaction from taking place:

  • You should carry out appropriate client due diligence (CDD) and Know Your Client (KYC) checks in accordance with the CLC Anti-Money Laundering and Counter-Terrorist Financing Code and Guidance.
  • Be aware of red flags and know what to do if you have any suspicions regarding your client, the other party or the transaction. See information about the AML here.
  • Ensure you have verified the other side’s conveyancer – check that they are legitimate and regulated by the CLC or the SRA by checking the appropriate registers.
  • Make your client aware of the possibility of fraud and suggest they make their own enquiries of the property and the seller, for example by talking to the neighbours.
  • Suggest to the client that they sign up to the HM Land Registry Property Alert Service. It is a free service that alerts the registered owner when certain activity occurs on the property.

 

Last reviewed: July 2018

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