What is a property scam and how to avoid getting scammed.
The feeling of being scammed is probably on of the worst things that could possibly happen to anyone. In this article we will discuss the different types of property scams and how to avoid getting scammed.
Property scams and scammers comes in many different forms
Most often you will find that it is a scammer advertising a real property listing taken from the internet or they will use a vacant property and in these instances the true property owner is unaware that the property is being advertised, they will then use these adverts under false pretenses to "trap" a potential buyer or tenant. Usually you will find that the person advertising these properties keep making excuses to show you the property and if they do show you a property it will be from the outside and they will make up some story as to why they don't have the keys. The scammer will then pressure you to pay funds upfront, once you do this they will disappear without a trace. A real Property Practitioner will make time for anyone who is interested in a property.
Another one is where the scammers will take a listing that is advertised online. They will then monitor the views and queries on this listing and then they will respond to these queries using the details of the advert owner. Usually they would want to meet in person and request not to have an Property Practitioner involved in the deal as they don't want to pay commission, they will then as you to pay funds upfront (before any paperwork is done) to secure the property as there are so much interest in this property. Do not pay any funds upfront.
How to avoid being scammed
When ever you are requested to pay funds before viewing the property or before any paperwork is done it is most likely a scam. Property Practitioners are required by law to complete FICA (identity confirmation) documentation of every client ( buyer, seller, tenant and landlord) they deal with.
Should you be requested to pay funds to a private bank account by a "Property Practitioner". Do not pay any funds as any funds paid to a Property Practice has to paid into a trust account.
If you are unsure of any property transaction or something just don't feel right seek the advise of another Property Practitioner from a different Property Practice.
If you are unsure of the validity of the Property Practitioner or Property Practice you can consult The Property Practitioners Regulatory Authority (The PPRA).
Please don't hesitate to contact us should you want to buy a property. We can assist with the property loan and provide you with a list of reputable Property Practitioners in your area.
