Prospective homeowners in the province have been warned by the Department of Human Settlements about paying for fake title deeds and housing approvals amid an ongoing scam.
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According to the department, a WhatsApp message had been going around that said it could help people get a house in two weeks.
Scammers ask people to pay R2,300 for an approval letter and title deed to qualify for the housing opportunity.
Western Cape Infrastructure MEC Tertuis Simmers said that vulnerable residents often fall prey to these scams in the hope of being assisted or bumped up on the waiting list for a government housing opportunity.
“In most cases, money exchanged due to fraudulent scams is not recovered. To be considered for a government housing opportunity, citizens need to be registered on the housing database at their local municipality.”
Targeted areas include Khayelitsha, Stellenbosch, Montana, Paarl and Mitchells Plain.
Simmers urged the public to be aware that placement on the housing database does not require payment, nor does applying for a housing subsidy or any other government-related housing service.
Any request for payment should be seen as an indication of a scam.
Speaking to News24 , acting department spokesperson Muneera Allie said that scammers often have some knowledge of how government housing works, and even create fraudulent approval letters and correspondence that appear legitimate.
“While some residents are also aware of how the system works, the mere suggestion of being bumped up on the waiting list prompts them to find the means to pay a requested fee to fast-track the process,” she said.
“During 2022, one victim arranged for a R2 000 loan in order to pay for an ‘approval letter’.”
“Due to the nature of these scams and false social media accounts created to rip-off residents, it is challenging to crack down on these con artists,” Allie said.
Prospective homeowners are advised to contact the department or any municipal housing office to verify and check the legitimacy of a housing social media post or advertisement.
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