Following one of the largest and most audacious property frauds in the UK, the Land Registry announced last week (see link below) that it would use powers under paragraph 4, Schedule 10, LRA 2002 to re-introduce land certificates as from April 1, 2009. Earlier this year, the Land Registry itself fell victim to a property scam performed by a gang of Ukrainian drug smugglers in which its own headquarters building in Lincoln’s Inn Fields was transferred from under the noses of the Land Registry and vested in a Panamanian registered company. The property was subsequently sold for £52.5m and is now owned by two pensioners living in Cromer. A spokesperson for the Land Registry, said: “Something has to change where we suffer a hit of this magnitude on the indemnity fund. The building at the time was valued at £47m, so the Treasury has claimed in full from the state indemnity. Thankfully, we have our own powers of indemnity, and, as one of our own members of staff was at fault in failing to keep our address for service up-to-date, we can use our powers of indemnity to obtain full recompense from the Government. Accordingly, the taxpayer will not be affected.” The re-introduction of land certificates, together with a requirement to produce the certificate whenever a transfer, charge or registrable lease is submitted for registration, should help significantly to reduce the risk of property fraud. See http://www.landregistry.gov.uk/certificates/april1windup
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