Spot popular property scams
TIPS: DOUBLE-CHECK EVERYTHING TO NOT BECOME A VICTIM
Engel & Völkers
Intercepted e-mails
Scammers hack into the emails of people involved in property transactions, such as estate agents or lawyers, tricking home buyers into wiring funds to them, instead of the appropriate parties.
They’ll indicate that the funds should be wired to a specific account.
Changes made to payment details must always be done by the seller in person if possible, or telephonically verified.
Any bank detail changes must be accompanied by verification of bank accounts.
Fraudsters posing as buyers
They’ll approach a seller privately and put in an offer.
The supposed buyer will later contact the seller asking for a document to be signed to help them get their home loan approved.
The seller signs it without reading too much of it, discovering later that a third party claims to have bought the home.
The scam artist (the first buyer) will have marketed the home online as an agent and found a buyer, who might have paid a large deposit over to the supposed agent.
Check every detail regarding property sale transactions.
Identity the
Stolen identity details are used to empty bank accounts and obtain various credit accounts, even home loans.
They’re able to long delay detection.
The scammer uses false documents to pose as the property owner, register forged documents transferring a property to their name, then get a new mortgage against the property.
After securing a mortgage or line of credit, they take the cash and disappear.
Bait and switch
A prospective buyer offers an “above market value” price to a seller – with no intention to purchase the property. Once the seller signs the contract, they may only sell to that buyer for a specified time.
When that time ends the fraudster asks to extend the contract for a few weeks to work out closing details.
In the meantime the seller keeps paying taxes, maintenance, utilities and insurance. The buyer comes back with an excuse as to why the price no longer works, and requests a reduction to below market value, threatening to cancel if their demand isn’t met. Stressed by time and on-going costs, the seller agrees.
Duplicated listings
“Agents” copy legitimate rental listings and advertise for a much cheaper price. People fall for these fake listings and wire money for them.
When searching for a rental, ensure you’re working with a reputable company or agent.
Fake rental agents
You find a property you’d like and call the agent to arrange a viewing. Later they say they won’t be able to make it, but the landlord will show you around.
The agent promises to negotiate a lower price with the landlord. At the house you find many other people interested in renting it.
You call the agent to negotiate a better price; they later inform you of the new price, saying you have to transfer the money for the first two months to secure the place. On moving day, you find someone else is moving in and the agent wasn’t real – they found the property online and reposted it with their own contact information.