With the ease of online advertising and access to an ever-increasing pool of information, property scams and cybercrime have become prevalent and even more sophisticated than ever before.
From mysterious emails to confidence tricks, we’ve all come face-to-face with a potential scam at least once in our lives – and according to the Seeff Property Group, scammers are getting craftier and more cunning as they intercept emails, messages, banking apps and everything in between.
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Property transactions have become a target for fraudsters and scammers, warns Seeff. Whether buying, selling or renting, it is imperative to be vigilant and look out for ‘red flags’ that could undermine these transactions, or worse, scam you out of money.
Always be on your guard
From past and present experiences, we know that fake email addresses, fraudulent or cloned emails and invoices are all part of schemes used to scam money out of unsuspecting customers. This is why being vigilant when dealing with requests for money transfers and payments is so important.
‘Always guard your private and banking information, and never transfer money unless you have personally verified the source of the email, the nature of the request and, most importantly, the bank details provided,’ emphasises Seeff.
According to Johan Meyer, a licensee for Seeff Pinelands, one should never part with any money or pay any deposit unless they have verified the request and that the transfer will be held in a trust account, preferably that of the respective conveyancing attorney.
Additionally, ensure that you are dealing with a registered estate agent. This also goes for tenants, as they often get scammed. You can verify the name of the agent and agency on the Property Practitioners Regulatory Authority (PPRA) website.
Seeing is believing
Besides verification, the second golden rule when looking to purchase or rent property is to make sure that the property you are viewing belongs to the owner or the landlord.
Often, scammers will go as far as to agree to a viewing but will only show you the property from the outside, with the excuse that the owner is not home to view. So, if you are unable to view it, find someone trustworthy in the area to help you.
Gerhard van der Linde, MD for Seeff Pretoria East, adds that property purchasers should also check that a signed disclosure document is available which discloses all defects, both patent and latent. Approved plans should also be available and up-to-date.
Sellers should be careful of unscrupulous agents who purport to have a buyer for the property but do not produce a written offer to purchase.
Information is key and background checks are always a good idea
Take care not to respond to fake properties, says Tiaan Pretorius, manager for Seeff Centurion.
These fake listings are often advertised with cloned photographs and information from other properties and can be difficult to spot.
If you cannot find information about the person advertising the property online, it should immediately raise a red flag.
Pretorius added that another thing to look out for is this: Legitimate agents will have a verifiable digital footprint. In addition to real estate agents, rental agents must also be registered with the PPRA so that you can verify their status online.
Too good to be true
Price is another good indicator when it comes to sniffing out property scams. If the asking price or rent looks too low, then consider it an immediate red flag.
Another red flag should be raised if for any reason, you feel that you are being pressured to make certain payments upfront. No rent or deposit should be paid over without the verification of the agent and property and a legitimate lease agreement drawn up and signed by both parties.
On the other side of the coin, landlords should also practise vigilance when verifying potential tenants. Pretorius warns that while it is common for tenants to pay rent in advance, one should be careful of swindlers who pay a few months in advance and then don’t pay again.
Tenants offering to pay higher rentals may also be a red flag.
Additionally, be clear about who may reside in the property, as there are instances where the tenant looks to secure a property for someone else to occupy.
‘If the tenant starts paying late or starts skipping payments without alerting the landlord, it should be an almost immediate red flag,’ emphasises Seeff.
‘As soon as you sense there is a problem, you should immediately address this with the tenant and follow it up with proper legal procedures.’
Also read:
Challenges and opportunities for first-time buyers in South Africa
Picture: Sandy Millar / Unsplash
