The Most Common Property Frauds That You Need To Avoid At Any Cost
The real estate market is booming and beaming with profit and is considered as one of the most profitable businesses in the entire world. Whether you are a business novice or an expert, one thing that pops in everyone’s mind is to start a real estate business.
Based on a recent survey, many of the houses in Windermere FL Realty were sold with guidance from real estate agents and companies. Even though the system is going perfectly fine and people are making/ saving money from it, it doesn’t mean that there are no issues associated with the business.
Wherever a business resides, there resides a scam. Scammers can be found in each and every corner of the world nowadays. When it comes to real estate scams and frauds, we are dealing with fake properties, over-priced houses, fake material, and house and also, not to forget the fraud in documentation during the entire process.
According to the Federal Bureau for Research’s Cyber Crime Complaint Center, every year, almost 12000 victims reported real estate or mortgage theft, resulting in damages of more than 150 million dollars.
Even though property-related scams might be a bit more difficult to identify but with proper understanding and research, one can get their hands on the scam and the scammers.
Let’s discuss some of the most common ways that unreliable real estate businesses can scam you.
One of the most common ways of getting yourself in a property related fraud is to seek services from an unreliable source. Obviously, unless you have tried a service before, it is completely unknown and unreliable to you. However, some basic precautionary methods can help you avoid this form of scam.
How can I avoid it?
- Use reliable websites and web sources to look at the property and to hire a real estate agent. Many people choose to go with people who have the designation on Realtor in front of their name. This means that they are authorized by the governing body to run this business.
- Look for the website because every verified and authentic business likes to have a website and a properly running corporate office to make their potential clients feel secure with their investment.
Fake Makeover to the House
Most of the people selling the property are short on time to secure the contracts meaning that they might not be able to make authentic changes to the house as mentioned and requested by the people purchasing it.
Many people who are dealing with hazardous/ infested housing problems will try to hide the problems instead of fixing them. This is just to hide the actual problem at hand until they get the money from you and disappear.
How can I avoid it?
- As a buyer, you have a complete right to ask your seller regarding the makeover and fixing the issues before you move in. Confirm that everything is fixed and worked on. Ask your real estate agents about the paperwork as well as the bills that prove that work has been done on the property.
- If the agents refuse to fulfill your request, you can always deny it, therefore, avoid getting into any signed contracts before everything as per your requirement has been catered to.
These scammers extract property work from other websites and sources and list them as theirs to make everything look authentic to the buyer. With no proper identity and authenticity, these scammers will not be available to meet you in person instead will push you for personal details and online contracts. This is a major red flag and recently the FBI has detected and closed down property scams based in Windermere FL Realty.
How can I avoid it?
- Never pay for anything unless you see it. Online contracts may be beneficial for other purposes but when it comes to large investments and properties, make sure that you visit the real estate agent and see the property first
- Don’t give your personal information such as credit card details and identity details to anyone online especially when they refuse to give you their real identity. In this scenario, make sure that any deal that you sign and any personal information passed on to such people is done on a genuine basis with assurance and authenticity in real life and not just on the online bubble.
Many companies claim to help people reduce their mortgage prices for their entire life in return for a heavy upfront payment. For the people who are already struggling with their mortgage pricing will fall for this scam and consider this a source of escape from the situation.
These scammers, however, leave as soon as you pay them and leave you in an even worse financial position.
How can I avoid this?
- These types of mortgage relief funds are usually approved by banks and property houses. If you are looking forward to seeking relief, the best option is to contact your actual real estate agent or the bank.
- In terms of loans, look forward to taking loans from authorized dealers only. Banks, for example, are a great source of leasing a loan.
One of the most common property frauds to avoid is the issue of false documents. Did you receive the original documents from the other side or not? This is one of the most important issues which disturb those involved in a particular real estate deal.
How can I avoid it?
- The detailed review of papers using accurate methods is very necessary. Take advice or consult a law firm from a qualified land specialist to clarify the validity of the deal.
- Always sign or approve a paper that is authentic and always attempt to pass a legitimate verification process.
Property business is indeed very profitable. For people looking forward to purchasing things from property dealers and real estate agents, it is extremely important that you look forward to finding proper authentic and documented ways of gaining ownership of that particular property otherwise; it’s a huge loss waiting for you.