When purchasing or renting a property, the last thing you’d want to get yourself into is a scam. Given the current situation due to the pandemic, many people are looking at different avenues to generate income, and unfortunately, this has given rise to the number of scammers as well. Criminals are also getting more and more creative by the day in how they target consumers.

Here we have listed 6 types of property scams that are most common, and tips to avoid becoming the victim of such scams.

1. Upfront Payment Scams

   Upfront payment scams are very common. Scammers use web portals as a platform to post fraudulent property listings. They lure in unsuspecting buyers or renters, sometimes using photos from other listings. Usually, the scammers may not have any connection to the owner of the property, yet they will insist on you paying an amount of money upfront before you’re allowed to view the property.

2. Too Good To Be True Listings

   Be careful of the person you are dealing with when their property listing looks too good to be true. If the price of the unit is much lower than the regular market rate, bear in mind that it could be a trap. Usually, when you call to enquire, the scammer tells you that the property has already been sold or rented to, and they will then proceed to offer you another unit at a much higher asking rate.

3. Limited Information On The Property

   A picture paints a thousand words and this especially holds true with property listings. Genuine owners will post their advertisement with clear and good quality photos. This is because they know that potential buyers or tenants will be looking closely at the photos before making a decision. Most cases where an advertisement is posted with only one or two blurry images, the person is trying to get as many calls as possible to build their database. If you happen to call to enquire about such listings, you might end up being harassed with endless phone calls from them in the future.

4. Uncontactable Owner

   Spend some time finding out who the owner or landlord is. This will surely reduce the possibility of getting scammed when you’re buying or renting through an agent. If you are looking at a serviced apartment, you can verify who the agent is with the management office. If you are looking at a landed property, make sure to go through as many online property portals as possible and search the agent’s track record. Never fall for excuses such as ‘the owner/landlord is not contactable because he or she is too busy’. Such fabrications usually lead to having your hard earned money paid out without you getting your promised property.

5. Rushed Viewing

   Get suspicious if you are being rushed through a viewing without getting the chance to inspect the property well. Chances are, the owner or agent is trying to hide something from you; perhaps the environment around the property is undesirable at certain times of the day, or the condition of the property is poor when viewed in detail, or maybe even an unpleasant incident has taken place there. Purchasing a property is a huge deal, so you have every right to inspect it to your heart’s content.

6. Asked To Sign Off Incomplete Documents

   Never be fooled into believing that certain items will be filled in a document after you have signed it. You will only be heading to trouble. When you put your signature on any document, it only means that you are agreeing to any clause or conditions that have been written or will be written in the future. Ensure that all documents are complete and checked by your lawyer before you sign.

   Make sure you always make a copy for yourself. Nowadays you can easily take photos of the documents with your mobile phone.

How Do I Avoid Real Estate Scams?

It is important to stay vigilant and protect yourself from getting scammed. Follow these tips to avoid getting scammed by unscrupulous agents or sellers:

• Consult a licensed professional: Try to deal only with professional property agents from reputable agencies.
• Keep your personal information secure: Do not provide your personal or financial information to individuals whom you are suspicious of, and do not provide financial information through emails, phone messages or websites either.
• Avoid upfront fees: Never pay any upfront money for a service to your property, especially if that person seems to be pressuring you.
• Keep an eye for any last-minute changes: If you’re in the process of buying a home and suddenly there are last minute changes that you feel unwarranted for, take the time to ensure that it is genuine. Do not be hurried in your decision-making and always take your time to read the fine print.
• Avoid off-market transactions: It’s never a good idea to engage in off-market transactions, no matter how good the deal is.
• Consult a lawyer: Always consult a lawyer of the procedure and to conduct the relevant searches on the property and verification on the seller before you pay any deposit. You may sometimes be asked to pay a deposit before the owner or estate agent provides detail, document or information of the property. Most basic information is available by just conducting searches with the relevant authorities.

The statement and information in the articles are the opinion of the writer and meant only as a guide. Any property purchase, rental or lease involve many legal issues and other complication depending on the individual facts and circumstances. Readers and Users are strongly advised to seek professional advise including from qualified and competent lawyers, bankers and/or real estate agent to verify the information and the statement before embarking on any purchase, rent or lease of any property. To the fullest extent permitted by law, we exclude and disclaim liability for any losses and damages of whatever nature and howsoever cause and arising including without limitation, any direct, indirect, general, special, punitive, incidental or consequential.