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1 It was the Land Registry that spotted the issue and wrote to the real owner so credit to them.
2 It is unbelievable that in 2016 you can complete a property without satisfying the Registry BEFORE exchange or completion that you are the real owner. This is an ON-LINE business. It has no electronic security whatsover before completion and only acts (to its credit) in retrospect like it did here, if it chances to find out. Whilst no electronic security is foolproof, surely for the hundreds of pounds we pay for registration fees a more robust system could be put in place than relying on (eg) photocopied utility bills being produced to hard pressed conveyancers. (which must be easy to replicate or forge).
I have huge respect for Land Registry staff but this proves the system needs urgent attention (not that the Govt are willing to finance it;they would rather let the lawyers pay through their insurance)