The real estate world is an invest able yet dangerous world to live in. Millions can be made in the blink of a night. However, billions can be lost overnight, especially if an investor is not careful enough and falls victim to illegitimate dealers who are only out to con and get an individual’s hard earned money and never to be seen or heard from again. It is very painful for home buyers to lose their money in such a way, especially if they had long term plans of owning a home. It is also a bitter experience for an investor to lose their money when all they were trying to do was to climb the economic ladder and enhance their financial security and explore the lucrative real estate market to up their lifestyle. Real estate fraud is very real and it is becoming a menace in today’s society.
The following are some of the common real estate frauds that you should be aware of:
This is currently and has always been the most common trick used by fraudsters as a means of extorting and conning investors. Unscrupulous dealers procure fake certificates in attempts to impersonate the real owners of the property that they are trying to sell to you. Others go the extra mile and even form fake and dubious companies so as to legitimize their fraud. This is why it is of utmost importance to inspect each and every document offered by real estate agents and carefully review them. Do not pay attention to photocopies of supposed original documents. It is better and safer to view original documents.
Seek the services of a lawyer for assistance in sorting and investigating the legitimacy of the documents offered by real estate sellers. This helps in avoiding the many pitfalls and potholes that dog the road to real estate riches.
It is also common to find real estate developers who develop properties for sale on land that has been earmarked for government projects such as expansion of roads and other infrastructure (airports, railways, and hospitals). Gullible buyers will part with their hard earned money and end up losing everything as the government ends up reclaiming the land beneath the seeming invested properties.
This is why due diligence should be done before agreeing on any terms with a real estate agent. Investigate and seek clarification from various governmental departments that are concerned with land and real estate. Carrying out due diligence will save the investor a lot of pain, trouble and heartache.
- Mismatch between advertised property and the actual property
It is common to find adverts that advertise properties that do not exist in real life. This is usually the first indication that something is amiss. Physically visiting the advertised site and seeing the property for oneself avoids the chances of falling victim to real estate scam.