‘Safe Harbour’ status in conveyancing

Property fraud has skyrocketed in recent years, reaching record levels in 2022. Since the pandemic especially, it has become easier for scammers to trick people out of their money with entire property transactions taking place without any of the parties – buyers, sellers mortgage brokers, surveyors and solicitors – ever clapping eyes on one another.

One of the most common scams involves fraudsters who pretend to be buyers, make an offer on a property but later withdraw. They then use all the information they’ve accumulated about the property to transfer the title into their name. Scammers will also impersonate property owners and sell their home without them realising it. Yet other examples include fraudsters pretending to be conveyancing solicitors to trick clients out of money, or landlords who ask potential renters for a deposit and are then never seen again.

With this type of fraud becoming ever more popular, the methods we use to protect ourselves must become more robust and more sophisticated. And that’s where ‘Safe Harbour’ status comes in.

What is ‘Safe Harbour’ status?

The Safe Harbour standard was introduced by Her Majesty’s Land Registry (HMLR), in partnership with the Law Society and the Solicitors Regulation Authority (SRA). Essentially, it comprises a set of guidelines for ID verification checks, using sophisticated biometric and cryptographic technologies.

Essentially, Safe Harbour status is granted to a conveyancing matter when the solicitor has “fulfilled their obligation to take reasonable steps in relation to the requirement to verify their client’s identity”.

The requirements

The guidelines outline a series of requirements that a conveyancer must meet when verifying their client’s identity, including:

Requirement 1 – Obtain evidence

Conveyancers must ask for particular forms of identification to check their client is who they say they are. They must hold biometric information – for example, a biometric passport which contains a secure electronic copy of the client’s photograph – and cryptographic security features – for example, a digital signature – which can both be read using advanced digital technologies.

Requirement 2 – Check the evidence

Conveyancers must use specialist digital ID verification software such as Verify365 that offer biometric and cryptographic verification capabilities in order to check that the document is genuine.

Requirement 3 – Match the evidence to the client

Identity verification technology is able to perform ‘liveness checks’, whereby the client takes a photo of themselves which is then run through a special algorithm. This process is able to detect ‘live’ images, i.e. where the client is physically present, from fraudulent or manipulated images such as masks, 2D photographs and other methods used by scammers.

Requirement 4 – Obtain evidence to ensure the transferor, borrower or lessor is the same person as the owner

To meet Safe Harbour standards, a conveyancer must ask for two examples of evidence to prove that their client is the same person their documentation claims they are. This might include a recent utility or council tax bill, a valid driver’s licence or a bank statement.

By adhering to all four requirements, conveyancers can achieve Safe Harbour status for their matter, providing reassurance to their client that they are doing everything in their power to protect them from fraud and identity theft.

Attwaters Jameson Hill – a Safe Harbour for your property matter

Attwaters Jameson Hill now uses highly effective digital verification software to meet all four requirements of the Safe Harbour standard and keep our clients safe. We’re also accredited by the Law Society’s Conveyancing Quality Scheme. Not only are our systems now safer, but they also make the conveyancing process so much more convenient for our clients.

Rather than making endless physical trips to our offices to present your documentation in person, our software enables you to extract all the information we need from your documentation remotely via a smartphone app. You can even pass our digital identity verification checks by taking a photograph of yourself in the comfort of your own home.

To find out more about our rigorous identity checking processes or to speak to us about your conveyancing matter, simply call us on 0330 221 8855 or email enquiries@attwaters.co.uk.