Another challenge is being faced by the real estate industry of England and Wales. According to a recent report by propertywire.com, "Property title fraud is costing the Land Registry in England and Wales millions a year, despite diligent efforts to combat fraud in real estate transactions."
Uncovering fraud does not come easy, especially with real estate. According to a report by yourmortgage.co.uk, "Fraud is not something that can be easily detected, so ultimately the responsibility falls on all parties such as the Land Registry, solicitors and mortgage lenders alike."
It stands out that even with augmented efforts to battle fraud, the £10m cost of recompense claims was spent by the Land Registry for the past year because of fraud or falsification. Statistics show that the average value of each claim is £168,900. Data has further shown that the paid out cost for the number of claims increased. Last year, 86% of all claims were settled, this compares to 78 percent in 2012 as stated in a report by yourmortgage.co.uk.
The Land Registry's main mandate is to check an owner's entitlement to a property when a designation is registered. Loan lenders would then verify the records before approving any loans, to ratify the holder's identity. Despite the efforts such as these, it is not enough to prevent the increasing incidence of fraud. The progress is still slow in boosting the governance of the Land Registry's procedures and registers to shield against claims. The number of claims remains stubbornly stagnant, the costs of which have to be shouldered by its Indemnity Fund as stated in a report by propertywire.com. For England and Wales, more challenges await for the Land Registry department because these two areas have the highest percentage when it comes to real estate fraud. Factor such as vulnerability, negligence, and the interest rates are among the denominators for the prevailing fraud incidence in England and Wales.
