To verify that an individual truly owns the property, their name must match the one on the official Land Registry Title Deed, these are known as the Beneficial Owners. These individuals officially own the property and have the right to sell it. As such, the name on the paperwork you provide must match those on the title deed in order to be compliant. If there is a mismatch (i.e. a change in maiden name) your agent will manually review the results of the check.
ID checks are a crucial part of property transactions in the UK for several reasons:
- Legal Compliance: The law requires ID checks to comply with anti-money laundering (AML) regulations. These regulations help prevent illegal activities such as money laundering and financing terrorism.
- Fraud Prevention: Verifying the identity of all parties involved in a property transaction helps protect against fraud. This ensures that the person selling or buying the property is who they claim to be, reducing the risk of identity theft and other fraudulent activities.
- Ensuring Validity: ID checks confirm that the individuals involved have the legal right to engage in the transaction. This protects all parties and ensures that the sale or purchase is legitimate.
- Security: Proper ID checks add an additional layer of security to the property market, maintaining the integrity of property transactions and safeguarding personal information.
- Due Diligence: Estate agents and legal professionals are required to perform due diligence to ensure all parties involved meet the necessary legal requirements. This involves verifying identities to ensure compliance with regulations.
In summary, ID checks are essential to ensure the legality, security, and integrity of property transactions in the UK. They protect all parties involved and help maintain a trustworthy property market.