During the home buying process, specific information and documentation is required to ensure that the buyer is suitable. These checks are essential to prevent issues such as fraud as they the buyer is who they say they are.
Although these checks should be standard practice, a recent survey by Credas Technologies has discovered that UK homebuyers aren’t being asked to provide ID when purchasing a property.
Failure to carry out Identity checks
When questioned whether during the purchase of their last property the selling agent ask for proof of identity, 23%of respondents revealed they were not.
Although, 77% of respondents said they were asked to prove their identity this revelation does spark concern among the remaining buyers who did not have to complete this step.
Identity verification checks are straight forward as by simply providing a passport, driving license, a biometric residence permit, national identity card or a combination of documents such as council tax bills, bank statements or utility bill, this can be completed.
The analysis by Credas Technologies also determines that 30% provided no proof of their address, 13% stated that they weren’t asked to verify their identity by their lawyer or solicitor and 18% also said their mortgage broker also failed to verify their identity properly.
Tim Barnett, chief executive officer of Credas Technologies says: “For the vast majority of those operating within the property industry, failing to verify the identity of a potential buyer may sound unbelievable. Not only is there a legal requirement to do so, but it can also be incredibly detrimental should they fall foul of criminal activity.”
“Unfortunately, it does happen more often than you may think, particularly for those attempting to verify a vast number of buyers on a manual basis.”
“This is almost certainly an oversight due to stretched resources, rather than a cavalier attitude on the part of property industry professionals.”
“However, it does demonstrate the value that can be gained from a professional approach, whereby one identity verification can then be used across every area of the transaction process and by multiple shareholders such as agents, solicitors and mortgage brokers. It also highlights the value of investing in a bonafide onboarding platform that will prevent any transaction from progressing should a buyer’s identity not be properly verified.”
“Not only does this approach save time, money and resources, but it reduces the chance for criminal entities to utilise the industry to launder their ill-gotten gains.”
