Common Real Estate Scams and How to Avoid Them
Scammers abound in every industry and the real estate industry is no different. There are numerous stories circulating about people who have fallen victim to several real estate scams. In a fast-paced world, where crime has become sophisticated, the onus lies on you as a home seeker to be extra careful and vigilant during your house hunt in order not to lose hard earned money to unscrupulous people. Here is a compilation of common rental scams to increase your awareness and help you easily spot one.
1. Fake Landlords
Although most landlords allow agents to sell property on their behalf, some people who are neither agents nor landlords go around showing people properties that do not belong to them.
These people could be fake agents, relatives of the landlord or caretakers of the property. Usually, squatters in uncompleted buildings may stay in a property till the landlord decides to move in or sell. This is locally referred to as ‘hw3 so ma me’ which means ‘take care of it for me’. These people could easily pose as landlords and try to dupe you. To counter this, try to verify by talking to neighbours and demand to see documents before entering any business agreements.
1. Fake Landlords
Although most landlords allow agents to sell property on their behalf, some people who are neither agents nor landlords go around showing people properties that do not belong to them.
These people could be fake agents, relatives of the landlord or caretakers of the property. Usually, squatters in uncompleted buildings may stay in a property till the landlord decides to move in or sell. This is locally referred to as ‘hw3 so ma me’ which means ‘take care of it for me’. These people could easily pose as landlords and try to dupe you. To counter this, try to verify by talking to neighbours and demand to see documents before entering any business agreements.2. When You’re Asked to Send Money Without Having Met Anyone or Seen The Property
It is very uncommon for you to pay for something without actually seeing it, although that happens with a lot of consumer e-commerce products.
Real estate transactions involve huge monetary investment so if you live abroad and have viewed property on an online real estate marketplace like GiDiProperty.com, be sure to ask a relative you trust to check out the property, verify all documents and give you feedback before you make any payments. Whether renting or buying, make sure you actually visit the apartment or house you are considering so you are not scammed.3. If The Entire Process Seems Rushed
A lot of resources go into buying or renting a property so the landlord must understand if you want to take time to verify a number of
information before you actually make payment. If your landlord seems rushed and keeps encouraging you not to read documents since everything is fine, it might be time to raise your eyebrows at the whole process. If a supposed landlord acts pushy, disinterested in screening you as a tenant or too centred on money payments it might be a red flag.4. You’re Told You Don’t Need An Agreement
This might seem absurd but it is a very common approach real estate scammers employ.
Every real estate transaction – be it a sale or rental – requires some type of written agreement. So if a “landlord” tries to get money from you without considering that you might need an agreement, think twice. It could be that the “landlord” has no agreement to show you since he probably doesn’t own the property in question.5. The Landlord Cannot Meet You or Show You The Property
If the person or agent selling or renting out the property to you says he or she is not available or out of the
country indefinitely or wouldn’t be around till after you pay, it just might be a scam.
