[HN Gopher] Man left shocked as his house is 'stolen'
       ___________________________________________________________________
        
       Man left shocked as his house is 'stolen'
        
       Author : lbriner
       Score  : 260 points
       Date   : 2021-11-01 15:29 UTC (7 hours ago)
        
 (HTM) web link (www.bbc.co.uk)
 (TXT) w3m dump (www.bbc.co.uk)
        
       | superfamicom wrote:
       | I live in the US and had my debit card (number only, one of the
       | bigger data leaks) stolen years ago and ever since then my bank
       | will check every purchase with me over $300. It was really
       | frustrating for years until someone else took my card (from
       | another data leak) and was easily stopped and new card issued. I
       | cannot imagine someone selling my home without involving me, or
       | at the very least without several other of my personal contact
       | methods also compromised at the same time.
        
         | lbriner wrote:
         | The Solicitor has no existing relationship with the real owner
         | of the house. A bloke turns up and says they want to sell their
         | house and has the correct Land Registry details and some ID,
         | the solicitor does other checks and makes it all happen.
         | 
         | The illegal seller must have known that the owner was away for
         | some time though because even if everything is ready, it
         | usually takes at least 2 months to go through.
        
           | iso1631 wrote:
           | Vast majority of house sales involve at least one of
           | 
           | * an estate agent
           | 
           | * a mortgage company (on the purchase or the sale)
           | 
           | * involve a sale at a market rate
           | 
           | * involve parties that know each other personally (family
           | etc).
           | 
           | To not have any of those surely should raise a warning flag
           | that "this requires a little more investigation" than a
           | forged driving license. This wasn't an abandoned house being
           | sold after being empty for several years.
        
           | wongarsu wrote:
           | But surely the land registry has an existing relationship
           | with the real owner of the land? Isn't that the entire point
           | of the land registry, to be able to contact and deal with the
           | person who owns a particular piece of land?
        
             | martyvis wrote:
             | I purchased my property in 1989. Any contact detail for me
             | in the land registry in NSW Australia would be the house
             | where I lived and the phone number there. Neither would be
             | valid and lead them to me specifically. I certainly have
             | never had further contact with them or they with me. So if
             | someone presents themselves as me with a government issued
             | driver's licence at the property address they would be none
             | the wiser. (You'd normally also need to present say a
             | utility bill and a credit card to have enough points to
             | prove identity)
        
               | inglor_cz wrote:
               | The land registry could theoretically ask the tax office
               | for current valid contact details, because the tax office
               | is likely to be in closer contact with you...
        
       | scosman wrote:
       | Imagine if we really did tokenization of assets? This type of
       | fraud would be much easier (steal password vs months long
       | identity theft), and impossible to reverse.
        
         | nootropicat wrote:
         | Easier? It would become borderline impossible. How exactly do
         | you steal the seed for a hardware wallet? How do you even know
         | where it's stored?
        
           | iso1631 wrote:
           | You steal the wallet, you own the house. You lose the wallet,
           | you no longer own the house.
        
       | lifeisstillgood wrote:
       | UK house owner - just signed up to the Land Registry alert
       | system. Which has to be a record from not knowing something
       | existed to signing up in four minutes.
       | 
       | 1. The registry seriously refuses passwords that do not have
       | alphanumeric characters only. Did not try Unicode.
       | 
       | 2. Most of the UK is not in the land registry - it only is
       | compulsory for land sold IIRR since the 1990s and generally has
       | records going back to early 1900s. If someone owns land from
       | before then, no-one publically knows who they are or who owns it.
       | As most land in the UK is held by government or aristocracy and
       | they have not needed to sell it for centuries we don't know who
       | owns what.
       | 
       | 3. This simply cannot be the first time - something this
       | sophisticated, the original fraudster did not so this the first
       | time now. How common is this? I mean see above - the land
       | registry has a monitoring service for this ?
       | 
       | 4. Thinking about it, I just added a monitoring account with just
       | an email. If I create a new account and try to add $TargetAddress
       | I find out if it is monitored - and I suspect that that is not
       | going to count as a monitoring event !
        
         | iso1631 wrote:
         | About 85% of land in the UK is registered - including the vast
         | majority of domestic dwellings.
        
       | Aulig wrote:
       | Something similar happened in Germany recently. A house worth
       | millions was fraudulently sold like this. The original owners got
       | it back luckily.
       | 
       | German video about it: https://youtu.be/TolvzYzk64c
        
         | kfprt wrote:
         | These things always happen when a low trust society comes into
         | contact with a high trust society.
        
         | bellyfullofbac wrote:
         | At least here the thieves were known (or even well-known). What
         | if the buyer transferred money to some Nigerian prince who
         | showed up with fake ID and disappeared after the sale? Would
         | the buyer end up with no money and no house?
        
       | ensignavenger wrote:
       | My grandfather was rather fond of telling a story about a
       | neighbor when he was younger who came home from vacation to find
       | that their house had been stolen... like someone had brought a
       | wagon and team of horses in, jacked up the house, and pulled it
       | away. Being in a rather rural area, no one apparently noticed the
       | heist!
        
       | stretchwithme wrote:
       | Talk about something that needs multifactor authentication.
        
         | funshed wrote:
         | UK does require you to prove your identity but the solicitor
         | seems to have failed here with stolen identity. As the original
         | owner did not update there details to another address.
        
       | blunte wrote:
       | "You and Yours obtained the driving licence used to impersonate
       | Mr Hall" ... what? who?
       | 
       | And then, "Once the house was sold to the new owner for PS131,000
       | by the person impersonating Mr Hall, they legally owned it."
       | 
       | The people who sold the house did not have the right to sell the
       | house because they did not own it. The person who bought it does
       | not own it since it was not legally sold.
        
         | jonp888 wrote:
         | You and Yours is a long running consumer affairs show on BBC
         | Radio.
        
           | blunte wrote:
           | Hah! Thank you. I would have never guessed this.
        
       | koonsolo wrote:
       | It's weird that people get identified by their driver's license.
       | Don't they have digital ID cards that are better suited for
       | veryfying who is who?
        
         | karatinversion wrote:
         | The UK is funnily backwards about some things. In particular,
         | they have neither national ID cards, nor a population registry.
         | You end up sending utility bills to the government as proof of
         | address.
        
       | kybernetyk wrote:
       | Police: "not my problem, lol".
       | 
       | The joy of paying taxes.
        
         | philpem wrote:
         | It is pretty much how policing works in the UK. Declare it a
         | civil matter, get it off the books as soon as possible... and
         | that's not mentioning the mountain of police misconduct court
         | cases that have popped up recently.
         | 
         | Sadly the only chance of getting anything out of them is if the
         | media get involved and hold their feet in the fire a bit.
        
           | kfprt wrote:
           | UK police looked the other way on child rape gangs for
           | decades. Why would they care about this?
        
         | so_throwaway wrote:
         | Why do you expect the police to investigate this?
         | 
         | If A says that B is trespassing on their property, and A not B
         | is listed as the legal owner of the property according to the
         | single source of truth, isn't it normal that the police should
         | evict B and defend A's property rights?
         | 
         | Imagine if the police took the attitude "we have to give equal
         | weight to B's hard luck story about how he's the technical
         | owner". Harassment and vexatious claims of fraud would be
         | absolutely rampant.
        
       | freeqaz wrote:
       | Is it roughly the same to "prove" your identity in the US as it
       | is in the UK? In the US, at least for most credit checks, you
       | just need your SSN, some public record data about where you've
       | lived, and personal data (name, DOB, etc).
       | 
       | It's largely because there is no "National ID" system in the US
       | (due to political reasons). That makes it hard for companies to
       | track people, and the SSN is the only number that people
       | consistently have.
       | 
       | Are there any examples of countries where their government is
       | getting this right and eliminating stupid fraud?
        
         | AmericanBlarney wrote:
         | Seems pretty questionable as to whether due diligence was done
         | given the first indicator neighbors had of the sale was after
         | the transaction occurred. At least in the U.S. it's typically
         | pretty tough to miss that a house is up for sale - signage,
         | open houses, realtors showing up to give tours. Curious how
         | this buyer even connected with the seller.
        
           | irrational wrote:
           | I live in the USA, this year we both sold our previous home
           | and purchased our new home without the use of signage, open
           | houses, tours, realtors, etc. We found the house we bought
           | and found the buyers of our old house through our network of
           | friends. We filled out all the paperwork from forms we
           | printed off online. The title company took care of everything
           | after that. It was all done completely online until the very
           | last signing. At that signing the title company person told
           | us that they are almost ready to have everything completely
           | done online so that nobody ever has to meet in person. So,
           | shortly it will be possible to completely buy and sell a
           | house without ever meeting in person. At the time I was just
           | thinking about how easy and convenient it all was (and how
           | much money we saved by not having realtors), but now I'm
           | wondering about the fraud aspects.
        
             | yupper32 wrote:
             | > I live in the USA, this year we both sold our previous
             | home and purchased our new home without the use of signage,
             | open houses, tours, realtors, etc. We found the house we
             | bought and found the buyers of our old house through our
             | network of friends. We filled out all the paperwork from
             | forms we printed off online.
             | 
             | Surely you left a massive amount of money on the table
             | then, right?
        
               | irrational wrote:
               | In what way? We sat down and decided how much we wanted
               | for our house and told the potential buyers how much.
               | They thought about it for a day and then told us they
               | would give us that much money for the house. Maybe we
               | could have made more on the open market, but we were
               | happy and they were happy.
        
               | yupper32 wrote:
               | > Maybe we could have made more on the open market, but
               | we were happy and they were happy.
               | 
               | That's my point. You could potentially have made a lot
               | more money on the open market. Especially if the buyers
               | didn't even try to negotiate. That usually means they
               | would pay more (let alone what other buyers might pay).
               | 
               | The value of your house is what people are willing to pay
               | for it, not what you think it's worth or what you want
               | for it.
        
               | AtlasBarfed wrote:
               | Sounds like they avoided the 4-7% realtor commissions.
        
               | tialaramex wrote:
               | Yeah, here in the UK one of my friends bought his home
               | off another of my friends. A third friend practices
               | commercial property law, so she's insured to buy and sell
               | property and did all their paperwork at mates rates. (Her
               | employer buys her insurance, but it's personal insurance,
               | so it covers her off-the-clock work too)
               | 
               | Big saving all round.
        
               | iso1210 wrote:
               | I laughed at an old fashioned estate agent who wanted
               | 1.2% to sell my house. Realtor prices in the US seem
               | shockingly excessive. I guess it explains how Modern
               | Family live such a nice lifestyle I guess.
        
               | ska wrote:
               | > Surely you left a massive amount of money on the table
               | then, right?
               | 
               | s/surely/potentially/
               | 
               | They may have been better off also. At least the agent
               | commissions are saved, and maybe other costs. If the
               | buyer is motivated to buy, who knows if they weren't
               | already over market?
        
           | Johnny555 wrote:
           | Off market sales are not unheard of in the USA -- my
           | neighbor's condo was sold off-market. They were talking to a
           | realtor to prepare to sell, and the realtor put them into
           | touch with a buyer that paid cash for higher than they
           | planned to list it at. So it's completely possible for a home
           | to sell without neighbors being aware of it.
        
             | kube-system wrote:
             | Also, in my experience, many homes are listed on the
             | realtors MLS systems before they hit public sites like
             | Zillow.
             | 
             | I bought my house right after it was listed on my realtors
             | MLS system -- I had already made an offer before it ever
             | hit Zillow or before there was a For Sale sign in the yard.
        
           | michaelt wrote:
           | In the UK there's no requirement that 'For Sale' signs be put
           | up. Very few people look for a house to buy by driving around
           | looking for such signs - online listings are what drive the
           | traffic these days, and you can sell a house with nothing but
           | online listings.
           | 
           | Of course, most buyers will want to see the house themselves
           | before making an offer, as estate agents are famously
           | creative in their property descriptions. If you're getting a
           | mortgage to buy a house, the bank will generally insist on a
           | 'survey' where an independent third party turns up and
           | confirms that the building physically exists and suchlike.
        
           | lbriner wrote:
           | Not sure whether they will ever find the link. Regarding
           | signs etc. it sounds like the owner worked away so maybe the
           | neighbours just assumed that he was selling?
           | 
           | In the UK, it is very much a paperwork exercise, I have never
           | met any of the solicitors I have sold houses with, haven't
           | even spoken to most of them (everything on email)
        
         | jaclaz wrote:
         | I believe it depends, a house sale is no "ordinary" matter.
         | 
         | In other european countries like, say, Italy, Spain, France
         | there are national ID's and - opposed to solicitors like in the
         | UK - notaries which are a sort of public officials for the
         | contract (and they will check and certify the identities of the
         | people involved, besides the acts of property) and you won't
         | likely be able to open an account or however cash a check (I
         | mean large sums, like the sale of a house) with someone else's
         | identity in any bank without proper ID.
         | 
         | Possibly, with at least two well forged pieces of ID[1], you
         | can get around it in the bank, but I don't think it is easy.
         | 
         | [1] this is (or used to be) a common request, though I doubt it
         | is Law, when you want to open a bank account in Italy, and you
         | need to exhibit the actual documents, not a photo or similar.
        
         | jonp888 wrote:
         | The UK also has national ID system. It is almost unique in
         | Europe in this respect.
        
           | iso1631 wrote:
           | The UK _doesn 't_ have a national ID system. It's not clear
           | how such a system would help in this situation - if the
           | fraudster managed to get a driving license, why would they
           | have a problem getting an ID card.
        
             | jopsen wrote:
             | Many national ID systems in the EU have a digital
             | component. With two factor authentication.
             | 
             | They are not perfect, but it raises the bar.
        
               | iso1631 wrote:
               | So if you lose your phone you can never get a replacement
               | ID?
               | 
               | Or is the 2FA not worth the paper it isn't printed on
               | when it comes to replacements, and you're back to the
               | same level of proof you need for a driving license or
               | passport.
        
         | anonymousisme wrote:
         | "It's largely because there is no "National ID" system in the
         | US (due to political reasons). That makes it hard for companies
         | to track people, and the SSN is the only number that people
         | consistently have."
         | 
         | "Real ID" is now a thing. It's a "National ID".
         | https://www.dhs.gov/real-id
        
           | outworlder wrote:
           | No it isn't. This might be the case when SSNs stop being
           | requested for non social-security purposes and 'real id'
           | starts to get used in its place.
           | 
           | People don't necessarily have them either. Only those who
           | have chosen to do so at a DMV.
           | 
           | SSNs are often assigned at birth, for people born in the US.
        
           | 2fast4you wrote:
           | > REAL ID is a federal law, not an actual piece of ID.
           | Congress passed the REAL ID Act in 2005. The act established
           | minimum security standards for state-issued driver licenses
           | and ID cards.
           | 
           | https://www.dol.wa.gov/about/real-id-overview.html
           | 
           | REAL ID doesn't sound like a federal ID system, it's just
           | security standards for state issued ID cards.
        
             | anonymousisme wrote:
             | If states are complying to federal standards for ID, then
             | it is effectively a federal ID.
        
               | 2fast4you wrote:
               | But they aren't issued or backed by the federal
               | government. There isn't a national database for it, each
               | state still has it's own system
        
               | throaway46546 wrote:
               | There is a national database. It is called SPEXS.
        
         | mindslight wrote:
         | There is no such thing as "getting this right" the way you're
         | thinking. No matter what you choose, any possible source of
         | truth will be imperfect. In this case, the UK Land Registry is
         | used as a source of truth, but didn't thoroughly check IDs.
         | Seemingly because the UK ID system is used as a source of
         | truth, but then itself failed in some way.
         | 
         | With an ambient concept of ownership, one is inherently left
         | with a tradeoff between trusting the system as defined and
         | being able to override it. In fact, this is exactly what caused
         | this failure of the victim being unable to get their house back
         | - compared to the common law deed system still prevalent in the
         | US, whereby the buyer would be left without any title and would
         | have to fall back on title insurance to be made whole.
         | 
         | The only way to eliminate fraud is to _define away_ right and
         | wrong, creating a single source of truth ala Bitcoin [0]. In
         | Bitcoin if you have the privkey to a pubkey, then you can
         | transfer value to a new pubkey, period - there is no such thing
         | as theft, as it has been defined away. But obviously this isn
         | 't the kind of harsh regime people have in mind when they say
         | they want to eliminate fraud.
         | 
         | FWIW the political problem in the US preventing national ID is
         | the complete lack of ability to reign in corporate behavior.
         | The ongoing abuse of SSN and drivers license numbers by private
         | surveillance companies needs to be stopped (by something akin
         | to the GDPR) before it would make any sense to talk about
         | creating even stronger identification.
         | 
         | [0] Actually this is going to fail for Bitcoin as well, because
         | it lacks the key ecash property of untraceability. Since it
         | lacks fungibility, it's only a matter of time until courts
         | routinely override the computational system with their own
         | version of truth.
        
         | handrous wrote:
         | The situation with government data in the US is extremely
         | frustrating. Between the government themselves and quasi-
         | governmental private companies (the credit bureaus) they know
         | practically everything about us--but we refuse to let them use
         | that information in any kind of helpful way to make our lives
         | easier and reduce our stress & workloads, because that would be
         | "big brother" or a step toward ushering in the end times (for
         | foreigners: yes, seriously, that's not a joke) or whatever.
        
         | lbriner wrote:
         | It sounds like the fraudster got a copy of the real person's
         | driving licence, although he must have looked the real person
         | presumably.
         | 
         | A Solicitor has to due the legal due-diligence to make sure
         | they have the right to sell including usually ownership of the
         | title deeds but if you don't have the title deeds and they are
         | held by the Land Registry in name only, this is fairly easy to
         | get around.
         | 
         | I smell an insurance claim against the Solicitor but it depends
         | whether they did everything correctly or not, otherwise I don't
         | know where he stands.
        
           | marcus_holmes wrote:
           | though presumably in "these trying times" the entire
           | transaction was done remotely and so the proof of ID was
           | images/photos/scans rather than seeing the originals - a lot
           | easier to forge and alter
        
             | pmyteh wrote:
             | I had to turn up in person to a solicitor's office with ID
             | (and my face) for a recent house purchase (in England), so
             | that's at least not universal.
        
               | lbriner wrote:
               | I have never done this for personal house sales in the
               | UK, the only time we did it was when getting a commercial
               | lease signed by the directors and each of them had to ID
               | at the Solicitors offices.
               | 
               | Thinking about it, it does seem very open to abuse!
        
             | [deleted]
        
         | cameronh90 wrote:
         | Currently buying a house in the UK and it involved rather a lot
         | of ID verification. I had to provide, to the bank, estate
         | agent, mortgage broker and lawyers, the following: passport,
         | driving license, utility bills, payslips, source of funds, bank
         | statements, app-based liveness verification and more.
         | 
         | However, in the event of an off-market cash transaction, a lot
         | fewer parties are involved - potentially just a
         | conveyancer/solicitor. I'm guessing it's them who hugely
         | dropped the ball in identity verification.
        
           | MeinBlutIstBlau wrote:
           | Still need a purchase contract. But it's insane to me that UK
           | law would allow for someone to forge documents in a civil
           | matter and get away with it.
        
           | mcguire wrote:
           | " _app-based liveness verification_ "
           | 
           | Ok, now you have me curious. Whazzat?
        
           | spzb wrote:
           | Same here. We completed over the summer and even had to
           | provide our marriage certificate to the bank (no idea why,
           | are single people not allowed mortgages?). Sounds very much
           | like the conveyancers (lawyers) screwed up massively. There
           | still some bits of this story I don't understand. Like, how
           | did the fraudster get access to the house in the first place?
           | Did he break in then fix the damage and replace the locks so
           | he had a set of keys to give to the "buyer"?
        
             | mcguire wrote:
             | The breaking in is not really that hard. It could be a
             | simple as calling a locksmith, telling them you were out of
             | town on business and lost your keys, and asking them to re-
             | key or replace the locks.
             | 
             | If you've got the ID to sell the house, you certainly have
             | enough ID to convince anyone else.
        
             | martyvis wrote:
             | >no idea why, are single people not allowed mortgages?
             | 
             | The bank needs to know the status of the relationship
             | because in the terrible event of it breaking up, your
             | partner would have equity in the asset.
        
       | Androider wrote:
       | > Once the house was sold to the new owner for PS131,000 by the
       | person impersonating Mr Hall, they legally owned it.
       | 
       | That's nuts. Why isn't it the case that the person who failed to
       | properly vet the seller is out of PS131,000 and the house? So I
       | can "buy" a local mansion and then say "oops, I didn't know this
       | random guy didn't own it. Oh well."
        
         | anonporridge wrote:
         | Also, how does the seller disappear with that much money
         | without being able to be IDed? That seems like a severe failure
         | of the state.
         | 
         | It almost makes me wonder if this is a semi common scam wealthy
         | folks use to take poor people's desirable homes.
        
           | sdenton4 wrote:
           | Paid in bitcoin?
        
             | anonporridge wrote:
             | Bitcoin is pretty easy to trace.
             | 
             | Could more easily disappear if paid in cash.
        
               | sdenton4 wrote:
               | Seems to work well enough for ransomware...
        
               | anonporridge wrote:
               | Actually, no it doesn't.
               | 
               | For example, the FBI was able to partially recover the
               | Colonial Pipeline ransom, although that seems to be in
               | part because the perpetrators were stupid by trying to
               | sell it on a US exchange, https://en.wikipedia.org/wiki/C
               | olonial_Pipeline_ransomware_a...
               | 
               | Criminals don't use bitcoin anymore.
               | 
               | They use cash and monero.
        
           | koonsolo wrote:
           | Banks offer very little protection for scams like this.
           | Basically "the money seems to be gone".
        
             | anonporridge wrote:
             | I mean, it's probably hard for bankers to turn in their
             | distant cousins.
        
         | mihaaly wrote:
         | Since it was not sold by the owner it is difficult to argue for
         | the legality of the transaction. Whoever claims bought
         | something has nothing in fact, the person they've been in
         | business with had nothing to sell. Selling nothing is nothing.
         | The records are false!
         | 
         | If the authorities assume things are in order here they should
         | also be prosecuted for negligence or being accomplice and at
         | least revert the FALSE transfer of ownership. (are we sure here
         | that the 'buyer' is an unsuspecting party theyself?...)
        
           | pc86 wrote:
           | This sounds entirely like how you want things to work, or how
           | you feel they "should" work in a just, fair world. It doesn't
           | sound like you have any legal education or training to base
           | this on.
           | 
           | But I greatly prefer your version of events to what happened
           | in the article so please prove me wrong!
        
             | mihaaly wrote:
             | Someone sold something that this person did not have. Sold
             | nothing. Then what the buyer has? Nothing! There was an
             | error in registering the transactions, it was a false
             | transaction.
             | 
             | How my will has anything to do about this or affecting if
             | selling nothing becomes something or not?
             | 
             | Where exactly a legal education needed for being able to
             | recognise that the real owner did not sell or give away his
             | property? If I am not a solicitor I cannot possibly
             | comprehend what is a theft, fraud, or recognise bodily harm
             | or crimes in general that are condemned by the society? I
             | do not buy into that. The recognition of these kind of
             | crimes are older than institutions dealing with those. If
             | the stealing of the property is not prosecuted then the
             | system is wrong, needs a fix.
        
         | _0ffh wrote:
         | Yeah, A gets scammed by B and C pays the price.
         | 
         | If you can't get a hold on B, then clearly A should be the one
         | all outta luck, not C.
         | 
         | Absolutely insane!
        
         | so_throwaway wrote:
         | You are confusing who actually owned it, or who morally owned
         | it, with who legally owned it.
         | 
         | The claim is not that, once the legal issues and the fraud get
         | untangled, the buyer will be held to be the rightful owner. The
         | claim is that AT THE MOMENT, while the 'new owner' is listed in
         | the Land Registry as owning it, and the 'old owner' isn't, the
         | 'new owner' temporarily legally owns it.
         | 
         | They have written this article as though to suggest that this
         | is final and the original owner has no recourse. That isn't the
         | case. What is the case is that the police don't have a remit to
         | investigate the fraudulent sale. If person A is listed in the
         | registry (they 'legally own' the property) and person B isn't,
         | the police will follow person A's instructions to remove person
         | B from the property, but not vice versa.
        
           | the_mitsuhiko wrote:
           | > temporarily
           | 
           | I don't understand by what logic this sale is temporary? What
           | mechanism can undo the sale?
        
           | JumpCrisscross wrote:
           | > _AT THE MOMENT, while the 'new owner' is listed in the Land
           | Registry as owning it, and the 'old owner' isn't, the 'new
           | owner' temporarily legally owns it_
           | 
           | Not an expert on British law, but I don't think this is the
           | case. The new owner owns it.
           | 
           | Not temporarily. Fully, permanently and properly. The
           | previous owner was fraudulently deprived of it, and can
           | likely get damages from the parties who signed off on the
           | conveyance. But I don't think they have the right to reverse
           | the transaction against the new owner's will.
        
             | so_throwaway wrote:
             | If you're not an expert on British law what makes you feel
             | able to make such a confident and surprising claim?
        
               | JumpCrisscross wrote:
               | > _If you 're not an expert on British law what makes you
               | feel able to make such a confident and surprising claim?_
               | 
               | The hubris of an internet commenter?
               | 
               | Also, it's not surprising. It's unusual for a common law
               | country. But in most jurisdictions, particularly those on
               | statutory law, if the buyer is unrelated to the fraudster
               | and is in possession, the register cannot be altered [1].
               | 
               | This comes, in most places, out of the land registry
               | being a reaction to protracted property disputes. (Often
               | violent.)
               | 
               | [1] https://www.bdbpitmans.com/insights/how-to-deal-with-
               | propert...
        
               | mdoms wrote:
               | This is Hacker News. Confidently espousing on subjects we
               | know little about is what we do.
        
               | Sohcahtoa82 wrote:
               | Pretty sure it's not specific to HN. _Any_ social media
               | has this behavior.
        
         | sofixa wrote:
         | In France it's the notary's job ( who are the only ones who can
         | validate a sale) to ensure that the seller is who they say they
         | are, and that they do actually own the land/house/apartment.
         | Wonder how that works across the Channel and whose
         | responsibility it was.
        
           | lbriner wrote:
           | It is the same with a Solicitor but if they followed the
           | correct process and the problem was actually with, say, the
           | DVLA who issued a driving licence in the wrong name, I'm not
           | sure who is liable for the error.
        
             | koonsolo wrote:
             | Why would you use a driver's license when everyone can have
             | a digital ID card?
             | 
             | In Belgium the notary will always ask for your digital ID
             | card.
        
               | the_svd_doctor wrote:
               | Doesn't the UK _not_ have ID cards?
        
               | lazide wrote:
               | Plenty of folks haven't updated, or don't like dealing
               | with it, or 'lost it' or whatever.
               | 
               | Most people doing notary/certification on stuff like this
               | are used to that kind of situation, so someone having an
               | acceptable but not ideal ID method isn't going to slow
               | this process down.
        
           | ElFitz wrote:
           | Don't we have actual, physical, titles, tied to the property?
           | 
           | Could someone actually sell a house without those?
        
             | gpderetta wrote:
             | Unless the house/land is not yet registered, I believe that
             | the land registry is supposed to be the ultimate authority
             | and deeds are just piece of papers. Ai think you can always
             | argue ownership in a curt of law of course.
        
           | laurent92 wrote:
           | The Notary in France doesn't necessarily fully do this job.
           | They have an obligation of means, ie check the last 30 years
           | of ownership and permits, but there are many cracks in that
           | system:
           | 
           | - Double ownership for 30 years followed by a proof of
           | ownership from the real, hidden one;
           | 
           | - Or simply it is the notary's understanding that there is no
           | record past 12 years for example, and yet there is. If they
           | have checked "the normal books", their duty is fulfilled.
        
             | forty wrote:
             | Is there stories of people getting their property stolen
             | this way?
             | 
             | My guess is that in France, if such a story as the article
             | happended, the buyer would be kicked out of the house (and
             | probably lose their money stolen by the fraudsters) but
             | maybe I'm completely wrong.
        
         | aclelland wrote:
         | Yeah, that part confused me to. I'm pretty sure that if I
         | bought a stolen xbox from some guy on a street corner and the
         | Police find me with it, they'd not throw up their hands and say
         | "oh well, I guess you own it now, on your way".
         | 
         | I assume there is a specific legal quirk with property
         | ownership.
        
           | dtparr wrote:
           | I believe the 'quirk' here is that the fraud was able to get
           | property ownership updated with the Land Registry, so the new
           | owner is the official owner of record.
        
             | dgb23 wrote:
             | So the Land Registry is at fault? Good luck...
        
             | thereddaikon wrote:
             | Sounds to me like in the UK you cant truly own land if the
             | government can just decide it belongs to someone else.
        
               | lazide wrote:
               | Possession is 9/10ths of the law, and the gov't likes to
               | claim possession of all real property in it's borders in
               | some way or another
        
               | ska wrote:
               | > cant truly own land if the government can just
               | 
               | This is mostly how private property works in practice,
               | everywhere.
        
               | aqsalose wrote:
               | In civilized countries, it requires a specific decree or
               | order by some government body, possibly after appeals.
               | 
               | Not just random clerk writing a line in a book when
               | random stranger comes and tells they own a piece of land
               | and are going to sell it.
        
               | _jal wrote:
               | > Sounds to me like in the UK you cant truly own land
               | 
               | Can you name a country that behaves differently?
        
               | jopsen wrote:
               | Yeah, you don't truly own land, you pay property taxes,
               | etc.
               | 
               | It's more like you lease the land :)
        
               | codyb wrote:
               | Pretty much true everywhere.
               | 
               | It's not like you can take anything with you when you're
               | dead, owning materials is really just a societal
               | construct no matter which way you slice it.
        
               | mensetmanusman wrote:
               | Interesting point,
               | 
               | I wonder if we will ever have a future where cryogenic
               | freezing works and allows people to own land after they
               | are temporarily dead.
        
               | H8crilA wrote:
               | Possession is a physical/real property of the universe.
               | 
               | Ownership is a legal abstraction/construct.
        
               | lazide wrote:
               | Being allowed to possess something (instead of being drug
               | off kicking and screaming by the cops) is also a
               | societal/legal construct.
        
               | enord wrote:
               | >Possession is a physical/real property of the universe
               | 
               | This assertion immediately falls apart on consideration
               | IMO. Even in simple, controlled circumstances like
               | football, the meaning of "possession" is subject to
               | mutual agreement (i.e. "rules").
               | 
               | You _could_ take some particular definition of
               | "possession" as "natural" or otherwise axiomatic. This is
               | not unheard of, but I think it's a trick of misdirection
               | to place it in the domain of the "physical/real" when it
               | is plainly a political matter.
        
           | iammisc wrote:
           | No. If you bought it, you own it. The thief now owes the
           | original owner damages. This is true in the United States and
           | I assume England since it's old common law stuff.
           | 
           | It's why thieves try to steal and then turn over immediately.
        
             | amerkhalid wrote:
             | No, that's not correct in the US. If you buy stolen
             | property unknowingly, it can be taken away from you.
             | 
             | Had my TV stolen, it ended up in a pawn shop. Luckily, I
             | had receipt and serial number. There was some paperwork and
             | court order but pawnshop had to return TV to me.
        
               | toss1 wrote:
               | Yup, that is also why there are laws against Receiving
               | Stolen Property [1] in the US. This is defined as:
               | 
               | >>According to general receiving stolen property laws, it
               | is a crime to accept or purchase any property which you
               | believe or have actual knowledge that it was obtained
               | through illegal means, such as theft. However, receiving
               | stolen property is its own separate crime and thus should
               | not be confused with the similar criminal acts of theft,
               | robbery, or extortion.
               | 
               | [1] https://www.legalmatch.com/law-
               | library/article/receiving-sto...
        
           | kybernetyk wrote:
           | The quirk is that in the UK you're not a free man but only a
           | subject and in the end the crown owns everything and now fuck
           | off, filthy peasant, before the king sends his men.
        
             | BoxOfRain wrote:
             | This is true in practice pretty much everywhere governments
             | exist though, it's not really a monarchy versus republic
             | thing. The stick is no less painful if it's called
             | "society's stick" rather than "the King's stick" if the
             | government of the day decide to beat you with it.
        
             | thesuitonym wrote:
             | Is this really different than any other country? Any
             | government (at least in uncontested territories) can come
             | in and tell you to fuck off, and there's really very little
             | you can do about it.
        
               | erikerikson wrote:
               | Quite the opposite. You ask the state to use their
               | monopoly on legitimate use of force to enforce your
               | rights in accordance to law. What you imply is a failed
               | state. The state must maintain the legitimacy of that use
               | to maintain consent of the people, that or it slides into
               | far less prosperous configurations.
        
               | lazide wrote:
               | Being in a far less prosperous (in a meta sense)
               | configuration is surprisingly not as big a deterrent as
               | one might expect, especially if you are making them angry
               | or the official involved would get far more prosperous
               | (in a direct, concrete way) along the way.
        
           | anonporridge wrote:
           | Interesting side note. That's true for property, but not for
           | cash.
           | 
           | Cash is legally considered fungible. So, if someone steals a
           | bunch of cash and buys something from you with it, even
           | though that specific cash technically belonged to someone
           | else before theft, it can't be reclaimed even if they can
           | prove it.
        
             | jakeinspace wrote:
             | I'm aware of this, but I do wonder what happens if, rather
             | than using the stolen cash to purchase goods, the thief
             | gave away the money? Either to friends, a random homeless
             | person on the street, or to registered charities. Would
             | that be still considered unreclaimable?
        
               | anonporridge wrote:
               | idk. Maybe buy a random thing from them for an absurd
               | amount?
               | 
               | Or just make it rain on so many people that it's
               | effectively impossible to get it all back. The power of
               | decentralization.
        
         | dmoy wrote:
         | It depends on how Title law works in the jurisdiction.
         | 
         | I don't know how it works in this part of the UK, but in many
         | states in the US, the buyer would left holding the bag - the
         | original homeowner would keep the property.
         | 
         | It's one reason in the US that most property sales include a
         | purchase of title insurance.
        
           | lbriner wrote:
           | I'm not a lawyer but the article implies that once the title
           | is transferred, the new owner owns it! There might be
           | liability with the Solicitor or the Land Registry, otherwise
           | it would appear to be incredibly unfair!
        
             | pmyteh wrote:
             | That's right, I think. The property can be recovered from
             | the fraudster, but not from an innocent subsequent
             | purchaser. There _is_ at least some form of compensation
             | scheme by the Land Registry. And  'selling on behalf of
             | someone who isn't the actual owner' certainly can found a
             | liability claim on the solicitor.
        
               | Causality1 wrote:
               | That's wild. Is there any other case where someone gets
               | to keep stolen property as long as they didn't know it
               | was stolen? I have to say if I was in the victim's
               | position, my reaction would probably land me in prison
               | for longer than the fraudster.
        
               | White_Wolf wrote:
               | I second that. If I'd end up losing my house to something
               | like this... Let's just say nobody would get it by the
               | end of it.
        
               | pydry wrote:
               | If you're implying what I think you're implying it would
               | probably end with you in prison.
        
               | reificator wrote:
               | Losing the singular most expensive item you own, that
               | typically contains the rest of your property, with no
               | warning... that tends to end with you on the street which
               | some may feel worse than prison.
               | 
               | I'm not condoning that choice but recognize the
               | consequences are particularly low when you're already at
               | the bottom.
        
               | lazide wrote:
               | I think it's more 'if someone goes through an expensive
               | and extensive legal process to purchase at great expense,
               | some real property, starts taking it as their own in good
               | faith, then later what may be the prior legal owner, but
               | who was not who did all the legal paperwork comes back to
               | me and claims fraud - do I have to move?'
               | 
               | The issue is there are scenarios where the person writing
               | the article may not actually be the legit owner - maybe
               | they are delusional, or were squatting, or whatever.
               | Maybe they are in league with the person who took off
               | with the money, etc.
               | 
               | And the person who bought it is out real money on the
               | meantime and is trying to make a home in good faith -
               | it's a pretty bad situation all around.
        
             | tialaramex wrote:
             | The Land Registry is the final arbitor of who owns what in
             | England and Wales. So yes, right now the Registry says this
             | New Owner owns this property, there is no way to contest
             | this in a court of law, the official Land Registry
             | paperwork is de jure supreme, it has the same legal effect
             | as if an Officer from the Registry was in Court to say yup,
             | that's who owns this property says the Crown.
             | 
             | But, of course what we've got here is apparently Fraud.
             | Presumably the likely legal outcome is that the actual sale
             | price or, if higher, fair market value, must go to the
             | previous legitimate owner. Unless the new owner is shown to
             | have committed fraud.
             | 
             | The Solicitors are required to be insured. And of course
             | the Government owns the Land Registry and so is quite
             | capable of standing any of its potential liabilities,
             | though it seems most likely the Solicitors screwed up here
             | in accepting bogus "proof" of identity.
        
               | ineedasername wrote:
               | Strange that the Land Registry decides on an issue that
               | is basically a matter of contract law: The buyer entered
               | into a fraudulent contract.
               | 
               | Nonetheless, here's how the Land Registry handles matters
               | of fraud:
               | https://www.gov.uk/government/publications/rectification-
               | and...
        
               | justinclift wrote:
               | Wow:                 3.2 Suspected fraud or forgery
               | If someone suspects that a fraud has taken place or is
               | about to take place in relation to their property, they
               | should contact us immediately. In many cases, we will
               | be able, on application, to enter a standard form
               | restriction LL in the register, that requires a
               | certificate to be given by a conveyancer that they are
               | satisfied that the person who executed a document
               | lodged for registration as disponor is the same person
               | as the proprietor.            It will also be advisable
               | to take legal or other       professional advice to try
               | to minimise any loss.
        
               | mytailorisrich wrote:
               | > _The Land Registry is the final arbitor of who owns
               | what in England and Wales._
               | 
               | I don't think that's true because for instance there are
               | still properties unregistered (as mandatory registration
               | was phased in until 1990). Certainly it seems possible to
               | rectify the Register, not least in case of fraud [1]
               | 
               | Also, in English law, a valid sale of land must meet
               | strict criteria, including being made by Deed. I am not a
               | lawyer but I don't see how the Deed can valid in this
               | case since it did not involve the legal owner at all!
               | 
               | Since solicitors must check identities (how could they
               | have failed that?) and executing a Deed includes signing
               | it in the presence of a witness I suspect a number of
               | people have at the minimum massively screwed up, and the
               | witness is likely an accomplice.
               | 
               | [1]
               | https://www.gov.uk/government/publications/rectification-
               | and...
        
               | ineedasername wrote:
               | It seems to be true:
               | https://www.gov.uk/government/publications/rectification-
               | and...
        
               | tialaramex wrote:
               | > there are still properties unregistered
               | 
               | But, if the Registry says your property is registered,
               | and that Jim owns it, the fact you say it isn't
               | registered doesn't trump that. You would need to persuade
               | a Court that the Registry is wrong, and then they'd need
               | to tell the Registry to fix that. Until both those things
               | happen, Jim owns it.
               | 
               | > I am not a lawyer but I don't see how the Deed can
               | valid in this case since it did not involve the legal
               | owner at all!
               | 
               | Prima Facie there's a Deed which says the legal owner
               | sold it. Now we've got this chap, says he's the legal
               | owner, says he never signed that paperwork. That's a
               | contradiction, which is true? So that's the sort of
               | problem we have Courts for.
               | 
               | My guess is, this chap is exactly who he says he is,
               | there's a fraudster somewhere with PS131000 of somebody
               | else's money who won't show up to court.
               | 
               | But of course it's also possible this is a different
               | fraud in progress. The chap who claims it was "stolen"
               | has PS131000 in an account in his friend's name, and now
               | wants both the house and the money.
               | 
               | A judge gets to decide the truth of the matter. Often
               | things are clear cut (e.g. the "driving license" proves
               | to be a badly photocopied Photoshop image, a solicitor's
               | clerk admits a "face to face" transaction actually took
               | place on Zoom, the bank account is traced to a known
               | crook who fled the country last week) but sometimes it's
               | just very hard to decide, which is why we need smart,
               | honest people to do that job and decide what's a fair
               | outcome when it's unclear.
        
               | jacquesm wrote:
               | Doesn't the registry have some level of 'duty of care'?
        
               | lazide wrote:
               | Seems like the ID was pretty convincing, and the real
               | owner (assuming the paper did their due diligence!)
               | wasn't there at the property - so everyone involved may
               | have done a decent amount of checking, but it wasn't
               | enough because the fraudster knew how to play the system
               | to get through the normal hurdles. It does happen.
               | 
               | Sounds like a court needs to dig in and figure out what
               | is going on for sure.
        
               | sjg007 wrote:
               | It sounds like a sophisticated fraud. They probably
               | target clergy or others who have well known public
               | schedules. I assume there is an equivalent of title
               | insurance in the UK that will pay out though.
        
               | jacquesm wrote:
               | The original owner is not going to be the one with title
               | insurance though, that's usually bought by the buyer, not
               | the seller, especially not a seller who isn't even aware
               | that there is a transaction.
        
               | zarzavat wrote:
               | Yes I expect that, if pressed, the courts would void the
               | entire transaction and restore the property. The land
               | registry may be the arbiter of who currently owns what,
               | but the courts are the arbiter of what "happened"
               | according to the law.
               | 
               | Otherwise it sets an absurd precedent. If it was not some
               | man's house but a critical piece of infrastructure, the
               | courts are not going to stand idly by and let some random
               | person take possession of Sellafield, or for that matter,
               | Harrods.
               | 
               | But the existing owner will probably settle for
               | compensation instead of fight a lengthy court battle.
        
               | pmyteh wrote:
               | No, the courts wouldn't. A genuine innocent purchaser,
               | properly registered at the Land Registry, has good title.
               | (Note: not the fraudster - their downstream victim). The
               | original victim's options for recompense are the scammer,
               | the solicitors who did the conveyance for the fraudster
               | (if negligent), or the Land Registry itself.
               | 
               | Nobody is going to end up as the accidental innocent
               | purchaser of a stolen Sellafield, so that's not a
               | concern. If the government really needs to reverse a
               | transaction under these circumstances it could use a
               | compulsory purchase order or a private act of Parliament.
        
               | lazide wrote:
               | Who pays back the 150k uk pounds?
        
             | tonyedgecombe wrote:
             | The article says "The Land Registry paid out a total of
             | PS3.5m in compensation for fraud last year." which tends to
             | imply they have some liability.
        
               | pdmccormick wrote:
               | I wonder if that means they don't pay all that much
               | compensation on a case by case basis, or if there isn't
               | that much fraud occurring to begin with.
        
               | pmyteh wrote:
               | I suspect they'd rather you claimed against the fraudster
               | or a solicitor, with the compensation fund as a backstop.
               | If that is the case, it could be neither: just that most
               | people get recompensed elsewhere.
        
           | MeinBlutIstBlau wrote:
           | This and un-filed liens are typically why you should always
           | pay for owners policies on title. Otherwise if something
           | comes up, you're royally fucked.
        
           | JumpCrisscross wrote:
           | > _I don 't know how it works in this part of the UK, but in
           | many states in the US, the buyer would left holding the bag -
           | the original homeowner would keep the property_
           | 
           | Different ways of dealing with the problem of fraudulent
           | transfer and property records. In the U.S., the risk is the
           | buyer's. If the property was fraudulently transferred, the
           | transaction is mutable. This makes the sureness of ownership,
           | as well as the record, less reliable, while making ownership
           | _per se_ more.
           | 
           | The U.K. flips that assessment. If the Land Registry says you
           | own the property, you can rest assured you own it. No re-
           | litigating whether that transfer two sales back was done
           | correctly. In exchange, this shit.
           | 
           | If you consider each country's history with respect to
           | property and power, it makes sense.
        
             | torstenvl wrote:
             | It isn't about property and power, though. It's about
             | _knowledge_ and power. The buyer _knows_ there 's a
             | transaction being contemplated. The buyer _knows_ how to
             | contact the seller and /or their agents. The owner does
             | not. The predominant U.S. system requires buyers to guard
             | against known unknowns. The U.K. system requires owners to
             | guard against _unknown_ unknowns. It 's a least-cost-
             | avoider problem, and it has a clear answer.
        
               | jonny_eh wrote:
               | Also the buyer is either a scammer or a dupe. The owner
               | is just a victim. Either way, the buyer should clearly be
               | held responsible and cover all costs to resolve.
        
               | jopsen wrote:
               | Or as alluded to in the article, it's a civil matter,
               | maybe you can sue solicitors involved, or the Land
               | Registry.
        
             | AlexCoventry wrote:
             | > _If you consider each country 's history with respect to
             | property and power, it makes sense._
             | 
             | Could you elaborate on that, please? I don't know which
             | historical aspects you're referring to.
        
             | chongli wrote:
             | _If the Land Registry says you own the property, you can
             | rest assured you own it._
             | 
             | Sounds to me like you can only rest assured at the moment
             | the Land Registry tells you. After that, it's only a matter
             | of time before some scammer sells your house out from under
             | you. Not a great system.
        
               | Seattle3503 wrote:
               | Seems like you should be able to lock your title just
               | like domain names.
        
             | martinflack wrote:
             | > In the U.S., the risk is the buyer's. If the property was
             | fraudulently transferred, the transaction is mutable.
             | 
             | Ironically you're describing the original English legal
             | system centered around deeds.
             | 
             | But a few US States, some of the UK Commonwealth, and
             | England, as it sounds from this article, use the Torrens
             | system[1].
             | 
             | The difference is whether the deeds are primary and the
             | registry a mere copy (or even optional); or the registry
             | primary and any papers reflecting registration a mere copy.
             | 
             | But generally with a Torrens system there is some statutory
             | compensation for fraud cases.
             | 
             | [1] https://en.wikipedia.org/wiki/Torrens_title
             | 
             | (IANAL so this may be incorrect)
        
         | anonAndOn wrote:
         | In the US, the buyer is often required to purchase title
         | insurance which would likely cover fraudulent transfer.[0]
         | 
         | [0]https://www.investopedia.com/terms/t/title_insurance.asp
        
           | iammisc wrote:
           | The us doesn't have centralized land registries.
           | 
           | While the counties record titles as a matter of convenience,
           | the true title is determined by the courts.
           | 
           | Other countries have centralized registries so that if the
           | country's database says X piece of land is owned by Y, that's
           | final. In the us it can be litigated and title insurance
           | comes into play for the buyer who purchased it fraudulently.
        
       | bsanr wrote:
       | A reminder, once again, that "identity theft" does not exist. It
       | is fraud, plain and simple, and the responsibility of the
       | businesses which aren't performing due diligence in confirming
       | your identity. 6-figure sums shouldn't be exchanging hands
       | without multiple layers of confirmation. This could easily have
       | been avoided with a search for any other numbers associated with
       | the man and a call to them to confirm.
        
       | desktopninja wrote:
       | When signing/transferring over the title deed, aren't all parties
       | involved supposed to be physically present in front of a
       | lawyer/notary?
       | 
       | Me thinks due diligence by all members involved in this
       | transaction was severely lacking and they should be held
       | accountable. I.e. Real Estate agent, bank, brokers, what have
       | you. One could even say they all conspired in this property
       | theft.
       | 
       | Alternatively, perhaps the victim was lacking some sort of
       | documentation that allowed the illicit procurement to occur?
        
       | ineedasername wrote:
       | It seems this is becoming somewhat common in the UK:
       | https://www.step.org/industry-news/uk-solicitors-warned-grow...
        
       | theonlybutlet wrote:
       | "it's a civil matter" seems to be the go to excuse for British
       | police. There's a whole TV series following property owners in
       | the UK who have experienced issues and this response comes up way
       | too often in the series.
        
       | Animats wrote:
       | This is apparently enough of a problem in the UK that the land
       | registry has procedures for locking a title and for reporting
       | frauds.[1]
       | 
       | [1] https://www.gov.uk/protect-land-property-from-fraud
        
       | iptrans wrote:
       | Sounds like the Land Registry is missing a NoTransfers bit in
       | their settings for properties.
        
         | ElFitz wrote:
         | It's wild to think that DNS registries might be better
         | protected than real estate ownership.
        
       | zeristor wrote:
       | Seemingly the gem Earth of the issue is the proof of identity.
       | 
       | Mention is made of a driving licence being obtained to open a
       | bank account, was this the actual Driving licence? If it had been
       | faked then the bank should have raised a flag.
       | 
       | There is a fair amount about having a government account to log
       | in for taxes etc, is this robust enough to be used in property
       | transaction like this? I not why?
       | 
       | Will this example highlight a number of other similar cases? Will
       | it prompt others to try it?
        
       | ChrisMarshallNY wrote:
       | I remember reading about a "sovereign citizen" outfit, doing
       | something similar, in the US.
       | 
       | In that case, the "sovereign citizen" would get bounced out on
       | their ear, but they can still make the homeowner's life a
       | nightmare.
       | 
       | https://www.fbi.gov/news/stories/sovereign-citizens-sentence...
       | 
       | https://www.nytimes.com/2021/09/26/nyregion/moors-newark.htm...
        
       | [deleted]
        
       | pjdemers wrote:
       | In the US, there is title insurance. If the seller didn't have
       | the legal right to sell the house, the house reverts to the legal
       | owner, and the buyer is paid back by the insurance. It's not
       | possible to get a mortgage without title insurance, and a cash
       | buyer would be nuts to not demand it from the seller. In some
       | states (example, California) it can get more complicated, though,
       | because the right to sell a house isn't the same thing as the
       | right to live in it. They buyer may own the house, but not have
       | the right to force the current occupants to leave. That's why
       | it's important to state in the contract that the house must be
       | completely empty before the seller gets paid, and every month
       | that it is not completely empty, a few thousand dollars is
       | subtracted from the purchase price.
        
         | merpnderp wrote:
         | In some states you can buy a house without title insurance. I
         | assume this is so that people who enjoy Russian roulette and
         | jumping out of planes without parachutes can enjoy the same
         | adrenaline rush when buying a home.
        
           | bluGill wrote:
           | Some states protect their titles better than others. In Iowa
           | (possibly other states) land transfers are done by the state
           | who verifies the seller really has right to sell the
           | property, so title insurance isn't something you need to buy.
           | (title insurance does cover other things as well, so banks
           | make your buy it for those things, but once the sale is
           | closed it is your property)
        
           | hn_throwaway_99 wrote:
           | Perhaps, but in some places (aka Texas) title insurance is
           | unnecessarily and outrageously expensive:
           | 
           | https://www.texasobserver.org/entitled-to-profit-in-texas-
           | ti...
        
           | tantalor wrote:
           | It's common to buy real estate from someone you already
           | trust, such as a family member. You know the title was good
           | when they bought it, so you can bet the title insurance fee
           | (several thousand dollars) against that trust nothing fishy
           | happened since then.
        
             | drfuchs wrote:
             | But what if something fishy happened before they sold it to
             | you, but it isn't discovered until after? Does their title
             | insurance still cover it? For instance, if their original
             | purchase turns out to not have been legitimate to begin
             | with for some reason.
        
               | conductr wrote:
               | Yes, title insurance is a single premium but gives the
               | owner forever coverage. This is essentially the purpose,
               | to give the buyer confidence that they are protected for
               | anything that may have happened that they wouldn't know
               | about, because the seller may not even know about it and
               | potentially it happened 100s of years ago.
               | 
               | Where this gets kind of crazy is if you own a property
               | and have title insurance on it from when you bought it,
               | then you do a refinance, you're often required to buy the
               | insurance again because that original policy ends.
               | 
               | All said, the loss ratio of title insurance companies is
               | extremely low compared to other types of insurances. But
               | in some places it's cost is fairly high (eg Texas) and
               | it's mostly to do with strong political interests /
               | lobbying
        
               | drfuchs wrote:
               | But what if I'm not the owner anymore? Specifically, I
               | buy a house and purchase title insurance on it. Later, I
               | sell the house to you. You trust me completely, so figure
               | you don't need to buy title insurance. Later, unexpected
               | to all of us, it turns out that my original purchase was
               | somehow flawed, and someone else actually owns the house.
               | You now ask me to now invoke my title insurance, and
               | (since I'm such a nice guy) reimburse you. So I call up
               | my title insurance company, and explain that while I no
               | longer even think I own the house, something was amiss in
               | my original purchase, and I want them to reimburse me.
               | The title insurance company agrees that there was a
               | problem at the time of my purchase. Will they then say
               | "Yes, you're right, the check is in the mail" or "No, be
               | that as it may, once you 'sold' the house we're off the
               | hook; tell the guy who 'bought' it from you to contact
               | _their_ title insurance company "?
        
             | kube-system wrote:
             | IIRC, casually passing down property to heirs is a common
             | scenarios in which titles _do_ become disputed.
             | 
             | Let's say your mom lives in a house, and she sells it to
             | you without a title. No big deal, because it was family
             | property she got from her parents and she's lived there her
             | entire life. Right?
             | 
             | Maybe not, when your grandparents children and
             | grandchildren show up and claim their fraction of ownership
             | of the grandparents' estate.
             | 
             | i.e. https://en.wikipedia.org/wiki/Heir_property
        
             | [deleted]
        
         | closeparen wrote:
         | This seems backwards. To evict someone you have to swear up and
         | down that you're going to occupy the place yourself. People get
         | prosecuted for e.g. doing an owner-move-in eviction and then
         | selling to a developer. The old owner doesn't have a legal
         | basis to get rid of the tenant, but the new owner does.
        
           | xyzzyz wrote:
           | From the perspective of the buyer, I don't care how exactly
           | the owner removes the tenant. It is immaterial to me. What I
           | care about is that no tenant occupies the property I am
           | purchasing. If the owner cannot guarantee that, eg. they
           | cannot legally evict a tenant, that's fine, I simply wont buy
           | the property, it is the owner's problem, not mine.
        
             | WarOnPrivacy wrote:
             | > I don't care how exactly the owner removes the tenant. It
             | is immaterial to me. What I care about is that no tenant
             | occupies the property I am purchasing.
             | 
             | Landlords can't legally evict a leased tenant who hasn't
             | violated their lease.
             | 
             | That there are tenants in the home would be part of the MLS
             | listing, along with bed/bath. If you've gotten as far as
             | inquiring about the property, you would know you're buying
             | tenants (at least until their lease is up or they accept
             | your offer to break it).
        
           | WarOnPrivacy wrote:
           | > To evict someone you have to swear up and down that you're
           | going to occupy the place yourself.
           | 
           | Where do you get this from? It's not like any US law I've
           | ever heard of.
           | 
           | For the evictions I've worked on, the homeowner simply wanted
           | the tenants out (non-payment, etc) so they could re-rent or
           | sell the property. They didn't ever have to live there.
        
             | closeparen wrote:
             | https://sftu.org/justcauses/
        
               | WarOnPrivacy wrote:
               | That doesn't seem to say the landlord can only evict if
               | they themselves are going to personally reside there.
               | 
               | The listed causes for eviction all seem fairly typical -
               | like non-payment.
        
             | bubblethink wrote:
             | That's very city/state dependent. SF has a lot of tenant
             | protections, which is probably what the parent was
             | referring to. In a lot of old SF apartments, the landlord
             | can only evict a tenant under specific conditions, one of
             | which is owner moving in
             | (https://en.wikipedia.org/wiki/Ellis_Act).
        
         | horsawlarway wrote:
         | Eh - depends on why you're buying the house.
         | 
         | There are a lot of rental properties for sale with "tenants in
         | place" in my area.
         | 
         | If you want to live in it, then yes - Ensure seller is
         | responsible for removal.
         | 
         | If you want to continue renting the property then a lot of
         | times it's easier for both parties to complete the sale and
         | then let the current rental contract conclude before doing
         | reno/construction.
        
           | WarOnPrivacy wrote:
           | If there's a lease in place, that lease continues unabated.
           | 
           | If the new owner wants the tenants out, the tenants have to
           | agree to break the lease. Otherwise the tenants can continue
           | to live there until their lease runs out.
           | 
           | It doesn't matter whether these are the best options for the
           | owner(s). They're the only options.
        
       | janandonly wrote:
       | I am baffled by the fact that a complete house can be had for the
       | little sum of PS131,000.
       | 
       | That's about EUR150.000 in real money... I guess where I live
       | that would get me a garage, maybe.
        
         | MeinBlutIstBlau wrote:
         | Ahem...you're missing a $ :)
        
         | iso1631 wrote:
         | Luton isn't exactly the nicest of places, but PS131k is way
         | below the asking price for even the cheapest houses there
        
         | nickkell wrote:
         | It's an absolute steal
        
       | fortran77 wrote:
       | It's odd that in the UK a person who buys stolen property legally
       | owns it.
        
         | so_throwaway wrote:
         | They legally own it in the sense that they are the legally
         | registered owners, currently.
         | 
         | They do not legally own it in the sense that the original owner
         | will not be able to eventually recover it after the fraud is
         | unravelled.
         | 
         | Your instinct that this is odd is correct. It is odd because it
         | isn't actually true. The statement of a police officer made
         | while standing on the street outside someone's house deciding
         | whose story to believe is not the final legal verdict on this
         | case.
        
         | funshed wrote:
         | Every story I have read about this before is the transaction(s)
         | are reversed. I presume the owner opted for cash instead of the
         | property back.
        
       | ballenf wrote:
       | While people decry the inability for crypto transactions to be
       | adjudicated in court, what we don't talk about as much is that
       | this is also the direction of non-crypto transactions. As the
       | article stated, the police initially refused to even consider the
       | theft of the man's house a crime.
       | 
       | We used to say possession is 9/10ths of the law. Now it seems the
       | algorithm is 9/10ths of the law.
       | 
       | You have maybe 10% chance to reverse a transaction that was
       | approved by the computers. Or at least we're headed that way.
        
         | lbriner wrote:
         | That's not what they said. They said it was not criminal but
         | civil, which a lot of contract and tort law falls under, it
         | means the police won't do the investigation for you.
         | 
         | I don't know why they considered that this was not fraud, which
         | is criminal but maybe they couldn't point to a detail that
         | showed where the fraud took place.
         | 
         | They might also have been wrong to say that!
        
           | dragonwriter wrote:
           | > the police won't do the investigation for you
           | 
           | Even in criminal matters, they don't do the investigation
           | _for you_ , they do it for public prosecutors, which may or
           | may not have incidental utility to you.
        
           | tonyedgecombe wrote:
           | The article says "Police initially told him it was not fraud
           | but are now investigating." My guess is the police couldn't
           | be bothered.
           | 
           | A friend of mine had a problem with squatters moving into his
           | house (which wasn't empty). Initially the police refused to
           | get involved until he got his solicitor to point out it was a
           | criminal issue.
        
       | pintxo wrote:
       | Really interesting, a very similar case has recently been
       | reported in Berlin, Germany [1]. Here the fraudsters tried to get
       | legal ownership of a whole apartment building in Berlin. It seems
       | they nearly made it, but then some insurance company sent a
       | letter to the actual owners who could successfully blocked the
       | transaction from committing.
       | 
       | [1] (in German) https://www.spiegel.de/panorama/justiz/berlin-
       | wie-ein-rentne...
        
       | MeinBlutIstBlau wrote:
       | This exact reason is why in the US you physically need to be in
       | person to sign loan documents to purchase property. You need 2
       | forms of ID, verified by the parties, copies of it taken, and
       | notarized.
        
         | iso1631 wrote:
         | It was likely a cash purchase, certainly was a cash sale, and
         | the ID was verified by the solicitors.
        
       | jokoon wrote:
       | It became much funnier when I remember the old saying "property
       | is theft". Quite fitting to this news.
        
       | tialaramex wrote:
       | For what it's worth. If you own Real Property in England, even if
       | only a Leasehold (Long Lease e.g. 99 years) you can get the Land
       | Registry to email you about activity or, once per year, the lack
       | of activity for your property records.
       | 
       | https://propertyalert.landregistry.gov.uk/
       | 
       | Land Registry records have a sort of poor man's locking. The
       | buyers (or in practice their solicitor) need to first perform a
       | "Search" which would get recorded as activity, some time before
       | they can file paperwork to claim it was sold, and so that gives
       | you considerable time to say "Hey, I'm not selling this, why is
       | there a Search by Honest But Incompetent Solicitors LLC?" and
       | phone up to yell at somebody.
        
         | mihaaly wrote:
         | It is always nice being vigilant for all and every possible
         | scam and fraud out there coming our ways, being ready and
         | prepared for whatever comes from whatever direction and for
         | whatever target of ours, going after every suspicious matters
         | we encounter or believe we encounter, being suspitious against
         | as much as possible preparing ourselves for all kinds that
         | could happen out there, but shouldn't be required. If it is
         | required then the sytem does not work, need to be fixed! Not
         | the victims.
        
           | bunnie wrote:
           | I have to agree with this. A little O/T, but reminds me a bit
           | of how US patents are handled. If you're able to constantly
           | monitor patent publications (the stage where patents are
           | disclosed but still in review), it is cheap and easy to
           | challenge applications. But good luck trying to get any work
           | done while trying to to keep up with the deluge of patent
           | publications!
           | 
           | If you miss your chance to challenge the patent before it
           | issues, the cost to protest goes way up, even if your
           | arguments would have been just as valid during the
           | publication phase.
           | 
           | I get that the system is trying to reward vigilance, but it
           | punishes people who put more time into sharing ideas than
           | protecting them, especially considering the PTO does not
           | search most modern repositories of open source for prior art.
        
           | macksd wrote:
           | This is how I feel. I'm all for encouraging potential victims
           | to take reasonable precautions, but especially when the
           | system could be fixed if a few people tried, it eventually
           | gets tiresome. I've been given free "credit monitoring" a few
           | times because of data breaches at places that should have
           | done a better job of protecting my data. But there is so much
           | noise impacting my credit score that I just don't even bother
           | looking at it anymore. I would hope this property system does
           | better, at least. The annual "no activity" email would at
           | least be nice occasional dose of peace-of-mind.
        
         | blibble wrote:
         | if you're really paranoid you could put a charge on it too
         | (like a bank or a building society would have)
         | 
         | makes it a much less tempting target
        
         | sdenton4 wrote:
         | This sort of scam is really common in Kenya. Walking around
         | you'll see plenty of houses with large spray-painted letters
         | stating 'THIS HOUSE IS NOT FOR SALE.'
        
           | milliams wrote:
           | Ah, I wondered why those signs were so prevalent when I
           | visited. Thanks for the explanation.
        
         | brightball wrote:
         | In the US I've always been told it's in the best interest of a
         | home owner to always have some type of bank loan on the
         | property. Mortgage, even a zero balance HELOC. Supposedly, this
         | allows the bank to ensure there's no title fraud because they
         | maintain a claim to it.
        
         | rectang wrote:
         | That's messed up -- it pushes the blame onto the victims for
         | not monitoring.
        
           | _jal wrote:
           | Rather similar to "identity theft", the strange name for a
           | particular form of (usually bank) fraud.
        
           | kelnos wrote:
           | Please don't throw around accusations of victim-blaming like
           | this.
           | 
           | No one is claiming that the victim is at fault. But I do
           | think it's useful information to pass along that it's
           | possible to get notified of things like this before they
           | become big problems.
           | 
           | It's like... it's not my fault if I get mugged at 3am in a
           | part of the city known for being full of violent crime, but I
           | also should have known better than to be walking around in a
           | part of the city known for violent crime at 3 in the morning.
           | Just because I am the victim, it doesn't mean I couldn't have
           | avoided an incident if I'd used common sense.
           | 
           | It's about outcomes and reality: sometimes we have to take on
           | a little extra responsibility in order to make it less likely
           | a bad thing will happen. That's not fair or just, but it's
           | the way the world works.
        
             | rectang wrote:
             | The problem is the absurdly unjust system that needs
             | monitoring. It's not "just the way the world works",
             | because it doesn't have to be the way that it is, and it
             | should not be the way that it is.
             | 
             | A system that requires constant, complicated intervention
             | to function properly ensures that those with the resources
             | and background to know that they have to exercise constant
             | vigilance against malfeasance will come out ahead over the
             | long run.
        
               | wins32767 wrote:
               | In general that's true, but in this particular case I'm
               | not sure it follows. This is a very infrequent
               | occurrence, which is why it made the news. From a
               | societal perspective, further investment in security here
               | is probably a net drag since all those security measures
               | will also apply to every valid sale and there are vastly
               | more of those. The pot of money that pays out to victims
               | of fraud doesn't make those people whole, but it's enough
               | to solve the problem well enough that it's probably
               | reasonably close to a global minimum in terms of total
               | cost across everyone in society. For those that are
               | concerned about the personal risk, being able to do your
               | own monitoring is a nice enhancement.
        
               | lazide wrote:
               | It is a infrequent yet catastrophic risk however for
               | everyone that owns any land or property in the UK - and
               | it would definitely keep me up at night if I had any
               | property there!
        
               | blitzar wrote:
               | > it would definitely keep me up at night if I had any
               | property there
               | 
               | If that would keep you up at night, then given all the
               | actual dangers in the world you have never slept.
        
               | OJFord wrote:
               | What is unjust? There's (claimed) fraud committed, and
               | it's under investigation. 'Justice has not yet been
               | served', sure, but maybe let 'the system' work before
               | decrying it as 'unjust'?
               | 
               | What would you have be done differently, immediately turf
               | out the new 'owner', who in his eyes paid for it fair and
               | square?
               | 
               | Assuming it's all true, presumably it _will_ be returned
               | to the true owner, the transaction reversed, and the
               | cheated non-owner will have a solid civil case against
               | the defrauder for the inconvenience and expense.
        
               | [deleted]
        
           | sdenton4 wrote:
           | Truth. A much better system would be for the titles office to
           | proactively get in touch with owners through a second channel
           | to inform them of any activity/changes, including change of
           | communication details.
        
           | dahfizz wrote:
           | This is a pathetic and harmful attitude. You should not
           | encourage victims (or would be victims) to be helpless.
        
             | eropple wrote:
             | I immediately parsed 'rectang's post as not implicating the
             | failure-prone system that allows this and _necessitates_
             | having the victims of such fraud be vigilant in such a
             | manner.
             | 
             | And they are correct.
        
         | [deleted]
        
       | gumby wrote:
       | Seems like the point of the conveyancer is to prevent this sort
       | of thing.
       | 
       | In California it seems that a title transfer company is in
       | practice the only way to transfer property, and for their
       | exorbitant fee they do at least insure the buyer against this
       | risk in perpetuity.
       | 
       | (Last time I bought a house in California I read the seller's
       | insurance policy and discovered its perpetual nature. I realized
       | that if I ever had a problem I could sue the seller and their
       | policy would cover me (and them). Unfortunately the title company
       | refused to do the transfer until I bought my own title insurance.
       | What a ripoff)
        
       | implements wrote:
       | Any UK reader can avoid this by signing up to:
       | 
       | https://propertyalert.landregistry.gov.uk/
       | 
       | It's the Land Registry itself, it's free, and: "Once you have
       | signed up to the service, you will receive email alerts when
       | certain activity occurs on your monitored properties, allowing
       | you to take action if necessary."
        
         | op00to wrote:
         | This is the same bs we have to deal with in the US with
         | financial credit and social security numbers. Because there's
         | no actual security, the individual must monitor their own
         | credit for abuses, or prevent anyone from accessing it via a
         | freeze.
        
         | cstross wrote:
         | Only covers England and Wales -- not Scotland and Northern
         | Ireland. So not actually UK wide.
        
         | m4tthumphrey wrote:
         | Just signed up to this. Only alpha numeric passwords allowed.
         | Always worries me.
        
           | _0ffh wrote:
           | I guess you'll just have to hope that they don't truncate the
           | password after the first eight characters or so...
        
             | pc86 wrote:
             | Hey as long as they truncate it the same way on login as
             | they do on account creation... /s
        
       | vmception wrote:
       | Another reason to use an anonymous LLC/entity. The owning entity
       | gets a new state identification number which won't have appeared
       | in as many leaks to be impersonated. While the individual owner
       | of the LLC isn't known to impersonate.
        
         | gruez wrote:
         | 1. doesn't that shift the problem to impersonating the LLC? If
         | anything that seems easier than impersonating a person?
         | 
         | 2. does this work with financing? how do mortgages work?
        
           | filoleg wrote:
           | > _doesn 't that shift the problem to impersonating the LLC?_
           | 
           | Correct, but as the grandparent comment says, the likelihood
           | of identifying info of your LLC (that could be fraudulently
           | used) to appear in as many data leaks is way less than that
           | of your personal info.
           | 
           | Plus, even if this type of fraud is still technically
           | possible with LLC (albeit with much more difficult steps),
           | just the fact that it is more difficult should discourage the
           | criminals (unless they have some personal vendetta against
           | you). Similar to all the nigerian prince emails, why would
           | they go for a target that is more protected, as opposed to
           | going for any much less secured targets? Hence why they
           | intentionally make their scam emails as obvious as possible,
           | so that they know if the person took the bait, then they are
           | super likely to follow through with the scam until the very
           | end. No reason for fraudsters to make their own lives more
           | difficult.
        
           | vmception wrote:
           | Social engineering is always a threat to anyone. What
           | occurred in this article would not have been available if the
           | entity was the owner.
        
         | lbriner wrote:
         | Not a reason for the UK. We don't have anonymous companies like
         | the US e.g. by assigning your attorney as a director so they
         | can hide behind privilege.
         | 
         | The Directors of your limited company would be available for
         | all to see with their address!
        
           | vmception wrote:
           | The company that buys the house doesn't need to be formed in
           | the UK.
        
             | gifnamething wrote:
             | Now you're paying extra SDLT
        
       | jchook wrote:
       | Reminded of Victor Lustig, who sold someone the Eiffel Tower.
       | 
       | He impersonated a government official and told a group of scrap
       | metal dealers it was too costly to maintain and that it was set
       | to be demolished and sold as scrap.
       | 
       | The man who purchased it was too embarrassed to go to
       | authorities, lest it ruin his reputation.
        
       | anonu wrote:
       | This is somewhat the point of "title insurance" in the US. In
       | this case the buyer would be protected since technically the real
       | owner never actually sold the property.
        
       | vanilla-almond wrote:
       | A bit long, but here is a summary from the BBC Radio programme
       | _You and Yours_ which has more detail than the BBC News report:
       | 
       |  _Background_
       | 
       | Mike Hall (owner of the property) moves around a lot due to his
       | work. He rents out his home, but due to COVID the property has
       | been empty for some time.
       | 
       |  _Returning to his property_
       | 
       | When Mr Hall returned to his house he could tell clearly the
       | house has been broken into. The front door window pane had been
       | smashed and partially replaced, and the locks had been replaced.
       | 
       |  _Reporting to the police_
       | 
       | Police told Mr Hall it was a civil matter and Mr Hall had to
       | leave the house and contact his solicitors.
       | 
       | Mr Hall put in an online application to Bedfordshire Police
       | Service to notify them of a crime. Every time he got an automated
       | replying stating this was not a criminal offence but a civil
       | matter.
       | 
       | He also contacted Action Fraud (UK's national reporting centre
       | for fraud and cybercrime, run by the City of London Police). They
       | also said it was a civil offence and they could not help him.
       | 
       | Mr Hall: "So everywhere I turned, it was a closed door"
       | 
       |  _Contacting the BBC_
       | 
       | Mr Hall contacted the BBC Radio programme _You and Yours_
       | (consumer affairs programme) and they confirmed this was a
       | criminal offence, not a civil offence. (Comment from me: speaks a
       | lot about the police that the owner ends going to a BBC Radio
       | programme due to inactivity and incorrect information from police
       | sources.)
       | 
       | The BBC put Mr Hall in touch with the Bedford Fraud Squad who
       | agree Mr Hall is a victim of fraud and is now investigating.
       | 
       |  _How did it happen?_
       | 
       | The criminal contacts the solicitor and pretends to be Mr Hall.
       | But how did the criminal convince the solicitor he was Mr Hall?
       | 
       | Solicitors require identity documents e.g. Passport, Driving
       | Licence (both include owner photo). The criminal applied for and
       | got a genuine duplicate driver licence from the DVLA (Driver and
       | Vehicle Licensing Agency) in Mr Hall's name ("genuine document
       | fraudulently obtained").
       | 
       | Mike Hall's driving licence is in Welsh and contains the title
       | 'Reverend', his address, his photo and signature. The criminal's
       | licence is in English, with the title 'Mr', a different address,
       | signature and photo. This is the fraudulent driving licence the
       | solicitor saw.
       | 
       |  _It gets worse..._
       | 
       | In April 2021, the DVLA contacted Mike Hall to confirm if he had
       | applied for a duplicate driving licence as they has a suspicion
       | the request they had received could be fraudulent. Mike Hall
       | confirmed to the DVLA he didn't apply for a duplicate licence.
       | The DVLA said they would cancel the fraudulent request.
       | 
       | Unfortunately, they failed to cancel the duplicate licence even
       | though they promised they would.
       | 
       | The criminal gets the genuine duplicate driving licence and
       | changes the picture in the driving licence. The DVLA would not
       | comment on how the criminal altered the driving licence details.
       | However, they say they are taking this matter very seriously
       | (they described what happened to Mike Hall as "awful") and are
       | working with Bedfordshire Police.
       | 
       |  _Fraudulent bank account_
       | 
       | In April, a new TSB bank account is fraudulently created in Mike
       | Hall's name. In July, over two days, PS131,000 is deposited into
       | the bank account - and then withdrawn. The BBC reporter contacted
       | TSB to ask them: why did they not flag this as suspicious
       | activity? TSB said the activity didn't trigger any suspicions and
       | they are working with the police on the case.
       | 
       |  _Will Mike Hall get his house back?_
       | 
       | Reporter: "Very possibly not"
       | 
       | Reporter: "If your name is on the Land Register for a property,
       | that property is yours and it doesn't matter if you bought that
       | property from a fraudster."
       | 
       | "The Land Registery is the only record of property ownership we
       | have in the UK [England and Wales]. It is state guaranteed and
       | that means if there is fraudlent change of title, which has
       | happened in this case, victims of fraud and mistakes can be
       | compensated."
       | 
       | This type of fraud ("vendor fraud") is on the rise. Compensation
       | has risen from PS2m to PS3.5m in just twelve months - a 40% rise.
       | 
       | The Land Registry say they rely on solicitors to make checks to
       | spot fraudulent attempts to impersonate property owners. Empty,
       | rental and properties with no mortgages are particularly
       | vulnerable to this type of fraud.
       | 
       |  _And what about Mike?_
       | 
       | The BBC showed Mike the fake driving licence used to impersonate
       | him: "I felt sick actually - seeing someone else's face on my
       | driving licence...I felt an emptiness in my stomach and it make
       | it all very real to me."
        
         | design-of-homes wrote:
         | Thanks for the summary. Everyone looks bad in this story: the
         | police, the solictors, the DVLA, the bank, and finally the law
         | itself which probably hasn't changed for decades if not longer.
         | 
         | A law that says a home can be fraudlently sold to an (innocent)
         | purchaser and thus confers ownership on the purchaser, while
         | the original owner loses ownership is simply not fit for modern
         | times. Even if Mike Hall receives compensation, he's still lost
         | his home and the contents in the home.
         | 
         | Will the compensation match the purchase price of the house and
         | the contents in the home? And what of the innocent house buyer
         | who bought the property? Surely it would make more sense to
         | return the house to the original owner, and for compensation be
         | paid to the house buyer.
        
       | rkangel wrote:
       | I have a friend who was almost the buyer of a house in the UK in
       | a very similar situation. Fundamentally, it relied on the seller
       | buying counterfeit identity documents (passport and driving
       | licence) off the internet. That way, in theory, the identity
       | checks were all conducted.
       | 
       | There was the suggestion that the seller's solicitor was in on
       | it, but no firm evidence. The seller has been arrested at least.
        
         | iso1631 wrote:
         | How did they find the house? Was it advertised through an
         | estate agent?
        
         | lbriner wrote:
         | It's a shame that the systems that are really important, like
         | passports, id cards, property registers etc. are all still so
         | far behind in basic security. They could easily require certain
         | info up-front on the title like mobile, photo etc. and then if
         | you need to update it, you have to do it via a solicitor or
         | equivalent, it's not like most people change their photo or
         | mobile number every week.
        
       | cletus wrote:
       | Having gone through the purchase and sale of houses I'm honestly
       | confused at how this happens. It involves a ton of paperwork,
       | phone calls and in-person appointments, generally.
       | 
       | If there is a mortgage on the property, the bank holds the title.
       | The bank has a relationship with the owner. How did the bank sign
       | off on the transfer of funds and title? They'd have to verify the
       | identity of the seller.
       | 
       | If there was no mortgage, at least in the US some bank normally
       | holds onto the title on behalf of the owner so the same applies.
       | 
       | There would need to be a settlement process where the sale
       | proceeds (minus mortgage repayment) needs to be paid to the
       | seller. What happened here?
       | 
       | Being aware of the possibility of fraud, banks can and do make
       | simple checks in my experience. A simple phone call with the
       | contact details on record would've probably prevented this.
       | 
       | In addition the Land Registry authorizing title transfer, the
       | bank would have to be on the hook here too. It's a colossal screw
       | up and a huge nightmare for the owner to deal with but I imagine
       | restitution will be made.
       | 
       | It sounds like he probably won't get his house back. I assume the
       | buyer acted in good faith. It sure does suck though.
        
         | whartung wrote:
         | > Having gone through the purchase and sale of houses I'm
         | honestly confused at how this happens. It involves a ton of
         | paperwork, phone calls and in-person appointments, generally.
         | 
         | It seems that this was sophisticated identity theft.
         | 
         | If someone managed to get a DL with your name on it, but their
         | picture, and your SSN, then it's pretty much carte blanche at
         | that point.
         | 
         | Go into a bank and say "I need to close my accounts". "What are
         | the account numbers?" "Oh, golly, I forget -- here's my DL, my
         | BDay is XX-YY-ZZZZ and my Social is 123-45-6789. I recently
         | moved from 1234 Main St. to 4567 First Ave." "Of course sir,
         | one moment." Next thing you know you're walking out with a
         | check.
         | 
         | And..that's it, it all comes from that. Buy a house, sell a
         | house, request some documentation. Especially, since they're
         | SELLING the house, they don't have to go through the rigors of
         | a background check for the loan. The BUYERS are placed under a
         | microscope. The sellers? "So, you got the key?" "Yea." "We're
         | good, sign here."
         | 
         | And it's noone's fault except the original perpetrator.
         | Everyone else did "due diligence". If the questions were
         | answered properly, showed appropriate ID, what more can they
         | do?
        
           | iso1631 wrote:
           | It sucks that the bank has its money stolen in your scenario,
           | but at least the person who the bank owes the money to (the
           | real holder) doesn't lose anything.
        
         | meltedcapacitor wrote:
         | The fraudster probably picked a property with both an absentee
         | owner and no mortgage for that reason.
        
       | WarOnPrivacy wrote:
       | I'm in the US. What I see is that stolen+sold property tends to
       | belong to the original owner, not the purchaser. Is it different
       | in the UK?
        
         | so_throwaway wrote:
         | It is not different in the UK. This person will get their house
         | back when the Land Registry has ticked all the boxes.
         | 
         | They were shocked by the reluctance of the police to enforce
         | their property rights simply on their say-so. They were shocked
         | by it because they hadn't really thought through how the system
         | works. It is not the role of the police to evict someone who is
         | the registered owner merely on the say-so of someone else who
         | claims to have been defrauded. Clearly there are good reasons
         | for this.
         | 
         | The article presents the facts as though they will never get
         | their house back (with some creative ambiguity about what
         | 'legal owner' means - does it mean the legally registered
         | owner, regardless of any past fraud? or the actual rightful
         | owner) because it makes a more interesting article than 'Man
         | left annoyed after a painstaking legal process restores him his
         | property rights'.
        
         | chrisseaton wrote:
         | The key problem is that it is a civil matter. It's like a
         | contract dispute - it's not a police matter. Obviously for the
         | individual it's a major life-changing disaster... but in the
         | eyes of the state it's equivalent to 'we ordered four cases of
         | Coca-Cola but our vendor only delivered three'.
        
           | krisoft wrote:
           | > The key problem is that it is a civil matter.
           | 
           | No. The criminal matter, as alleged, is that someone scammed
           | the buyer, the solicitors and the Land Registry into
           | believing that they are who they were not. That is not a
           | civil matter, it is I believe fraud.
           | 
           | If a bloke sells their house, but then gets cold feet, or not
           | happy with the compensation that is a civil matter. This is
           | not what is alleged.
        
             | chrisseaton wrote:
             | > The criminal matter, as alleged, is that someone scammed
             | the buyer, the solicitors and the Land Registry
             | 
             | Did you notice who you didn't list there?
             | 
             | The home owner.
             | 
             | The criminal issue doesn't involve him!
        
               | krisoft wrote:
               | > The criminal issue doesn't involve him!
               | 
               | Of course it does. If it is as alleged, then the home
               | owner and the new "owner" is equally victims of the
               | crime.
        
               | chrisseaton wrote:
               | Maybe you know more about law in the UK than I, but I
               | believe the criminal issue is between HM's Land Registry
               | and the person who sold it, and there is only a civil
               | issue between the rightful owner and anyone.
        
               | pmyteh wrote:
               | Criminal law in England and Wales is between the Crown
               | (represented by a prosecutor, often but not always an arm
               | of the state) and the alleged criminal. So the question
               | 'who is the technical victim' isn't usually very
               | interesting. The three salient questions here are:
               | 
               | 1) Has the person committed an offence (probably yes:
               | fraud by false representation, contrary to s.2 Fraud Act
               | 2006);
               | 
               | 2) Is there a reasonable prospect of conviction? (Who
               | knows: will depend on the evidence); and
               | 
               | 3) Is it in the public interest to prosecute? (Almost
               | certainly yes).
               | 
               | 'Who has been defrauded' doesn't even matter for
               | establishing (1), only that the fraudster intended to
               | make a gain for himself or a loss for someone else by
               | making a false representation (in this case that he was
               | the owner of the house). So in this case it really is a
               | bit crappy from the police: if a fraud has been committed
               | it doesn't in principle matter who complains about it,
               | they should investigate (or at least register the crime)
               | anyway.
        
             | lbriner wrote:
             | Yes, it is unclear why the police told him it was civil
             | since fraud is "misrepresentation for a gain", which the
             | fraudulent seller presumably did.
             | 
             | Maybe the argument is that without proof that the
             | fraudulent seller made a gain, it is merely a Tort and not
             | Fraud?
        
               | kube-system wrote:
               | Because there are three parties, and only one of them
               | committed a crime. The one who currently has the house
               | and the one who lost the house have not -- their dispute
               | is civil. The criminal was long gone by the time the
               | police arrived.
        
               | teawrecks wrote:
               | They're referring to the parties at the house when the
               | police were called. By all official accounts the house
               | had been sold and the police couldn't find anyone to
               | arrest.
        
               | krisoft wrote:
               | > it is unclear why the police told him it was civil
               | 
               | It's just typical first level support. Police didn't see
               | any obvious simple solution and wanted the issue out of
               | their hair so they said the thing which usually gets the
               | issue out of their hair. The person persisted and
               | escalated the issue higher. (for example to the news
               | papers.) And now "The BBC put Mr Hall in touch with
               | Bedfordshire Police's fraud squad, which has begun an
               | investigation."
        
               | pmyteh wrote:
               | I suspect the average PC called out to an argument
               | between two seemingly innocent parties about ownership is
               | going to want to get as far away from it as possible...
        
           | rkangel wrote:
           | Actually, in this case it should be both. It is a civil
           | matter to get the house back, but obviously there was also
           | some criminal fraud involved. The victim of the fraud though
           | is presumably the land registry rather than the house owner.
        
             | chrisseaton wrote:
             | > It is a civil matter to get the house back
             | 
             | Well that's what he cares about.
        
               | Taniwha wrote:
               | Well there's also all his belongings which also have been
               | taken (and are not controlled by the land registry)
        
               | rkangel wrote:
               | Sure. But as a distant second place after having
               | somewhere to live, I would also want the fraudster to go
               | to prison. Assuming this article is correct, he was "told
               | by the police they didn't believe a criminal offence had
               | been committed here" which seems dumb.
        
               | chrisseaton wrote:
               | The home owner has not been scammed. The land registry
               | and the buyer have been scammed.
        
               | [deleted]
        
         | klyrs wrote:
         | I'm not sure the police would do anything different in the US.
         | I'm guessing that proper owner, like most people, kept the deed
         | in his house -- which was emptied of his belongings and sold.
         | Without that, the police don't have much to act on.
        
           | WarOnPrivacy wrote:
           | In my state, original deeds are filed with the property
           | appraiser's office. I suspect this is the case for all states
           | but I do not know.
           | 
           | Our PAO gives a receipt at filing. Copies are available after
           | the deed is processed. In my state, they're public record; in
           | my county, they're available online.
           | 
           | source: worked for real estate attorney
        
           | op00to wrote:
           | Who keeps their deed in the house? When I bought my first
           | house, my realtor basically steered us right into a bank to
           | open a safe deposit box.
        
             | klyrs wrote:
             | Not saying it's the best of ideas (especially in light of
             | this story), but I think that a lot of people do it.
        
           | cortesoft wrote:
           | I don't think most people in the US hold a physical deed. I
           | know I certainly don't for my house.
        
           | bogle wrote:
           | In England the owner doesn't have the deeds, although they
           | may obtain a copy. It's digital with the Land Registry.
           | Scotland, incidentally, has the oldest land registry in the
           | world (1617 CE), the Sasines.
        
             | stevekemp wrote:
             | I paid off my flat in Edinburgh back in 2016 or so, and in
             | exchange I received a huge bundle of papers "the deeds",
             | from the bank.
             | 
             | I spent a fun evening flicking through the records of
             | owners, the price they'd paid for it, and the few details
             | provided (occupation, etc). All dating back to when the
             | building was built in 1890 or so.
             | 
             | Later I left the country, and moved to Finland. After a
             | year or two here I wanted to sell the flat as I'd decided I
             | wasn't going back. Despite going through the process of
             | ensuring the registry was updated I had to mail them back
             | to the solicators based in Scotland prior to selling the
             | flat.
             | 
             | The sale was carried out 100% remotely; I had a couple of
             | phone calls, and when I balked at the use of a FAX machine
             | I printed out a few forms/documents from emails, signed
             | them, and physically posted them back to the solicators.
             | 
             | Happily I'd had the foresight to leave a spare set of keys
             | with a trusted friend, which were used for the viewings,
             | etc. It probably helped that the solicator who handled the
             | sale had also handled the registration of the deeds when I
             | received them so they were probably confident it was a flat
             | I owned..
             | 
             | When I queried things I was told "The only registry is
             | definitive, but .. things are .. smoother .. with the
             | physical deeds". Made no sense to me, but I wasn't going to
             | argue.
        
               | iso1631 wrote:
               | I bought my house in August, I've got original deeds for
               | the land dating back to 1831 which was quite unusual to
               | be holding the 200 year old paper.
        
               | willyt wrote:
               | When the land registry was digitised they got the land
               | boundaries from the Ordnance Survey maps. The Ordnance
               | Survey got them from tracing aerial photos. When property
               | changes hands for the first time since the digital system
               | was introduced the land boundaries from the OS mapping
               | agency have to be checked against the original deeds as
               | they are almost always slightly wrong, e.g my kitchen was
               | shown as being partly in my neighbour's garden according
               | to the digital map.
        
           | quietbritishjim wrote:
           | Paper deeds are no longer relevant to property ownership in
           | the UK. The HM Land Registry records are authoritative
           | (subject to legal challenges). See for example:
           | https://hmlandregistry.blog.gov.uk/2018/02/19/title-deeds/
           | 
           | Edit: technically they are still relevant if the property has
           | not been sold since the records were digitised in the 1990s
        
             | Maxburn wrote:
             | In the US I believe your Title Insurance would give you a
             | suitable paper trail as well. That and the registrar.
        
         | staticman2 wrote:
         | You need a court case to determine if it was stolen is
         | presumably the issue.
         | 
         | You don't want police running around "taking people's house
         | back" without due process, presumbly.
        
           | lbriner wrote:
           | No, I think the issue is that police would have no power to
           | "take the house back" because it was legally purchased. They
           | could investigate the fraud committed by the seller against
           | other organisations but specifically, the real owner is not
           | the victim of criminal fraud.
           | 
           | I don't think he will have any ablity to forceably reobtain
           | the house, although potentially, if he refunded the buyers
           | money (after getting it from the accused), they might agree
           | to give it to him back. On the other hand, if already
           | cleared, it would probably be easier for the real owner to
           | get his money back and buy somewhere else.
           | 
           | Very sad though.
        
       | david-cako wrote:
       | isn't there a Steve Martin movie about that
        
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