Real estate scam, rental scam, title fraud, foreclosure scams, moving scams, wire fraud, investment scams, duplicated listings, bait and switch scams, loan flipping has made finding the perfect home a daunting task, surprising and risky, and the story of a real estate scam serves as a sobering reminder of the hazards that might lurk in the property industry.
Just like any other industry, the real estate industry and the property market have had their own fair share of scammers defrauding potential property buyers and renters and robbing them of their hard-earned money.
We’ll examine this warning story and expose the intricate network of deceit, manipulation, and treachery that captured its victims.
This will assist in drawing attention to the cautionary tales and red flags that any potential homeowner or investor should be aware of in order to succeed in the real estate market.
Some Real Estate Fraud Strategies
- Booking platforms scam
Real estate developers who prefer to use their property for short and longer rentals usually make listings on booking platforms like Airbnb, booking, expedia, vrbo and other popular platforms. This is to help both local and international customers secure an apartment for their stay in that country. Besides this good intention, scammers use this opportunity to leverage on these innocent investors. They will use fake credit card or payment details to to book a property. This will cause property owners to loose money as payment details gets declined. In short, these scammers live in the property without paying. - Customer pick up scam
Another medium through which scammers use to deceive real estate investors is through customer pick ups. What they do is, they will book your property for a longer stay thus, making their offer very pleasant. They will request for a pick up from the airport as it’s known as a complementary service provided by some real estate agencies like BOT Properties Ltd. They will also share with you fake flight details and expect you to be there on the said time. When they confirm that you are at the pick up station usually the airport, they start start their game. They mostly say they are having problems with the immigration and would request you send some money for them to resolve that issue. Note that all these are lies, don’t fall for it. - Wire Fraud in Real Estate
This is how real estate scammers operate: they will draft a counterfeit email that purports to be from your title company, mortgage lender, or real estate agent. Following your clearance to close, the con artist will notify you via message that your bank details have changed and offer you a new account to which you can transfer funds. You send the money to the impostor rather than your lender or title firm by wire. People lose their down payments and the thousands of dollars they required to purchase their homes in this way. - Title Fraud
In order to appear as though they are the house’s legitimate owners, scammers will need to forge paperwork as part of this real estate scam. To assert ownership of the land, they might fabricate identification documents, birth certificates, and tax records. They can make money off of a property if they own the title and deed to it. - Land dispute scams
In Ghana, the term “land dispute scams” refers to dishonest tactics intended to profit financially from disagreements or fights over land ownership. In these types of scams, people are usually tricked into believing they own contested land, which is then offered for sale or lease, and money or deposits are then taken. In order to trick their victims, fraudsters frequently alter or fabricate land documents, misrepresent legal rights, or assume the identity of reputable landowners or authorities. They prey on those looking to buy land or settle existing problems by taking advantage of the complexity and uncertainty surrounding land ownership and conflicts in Ghana.
Dangers of Real Estate Scams to The Investor
- Loss of money for the real estate investor
Scams in real estate can have disastrous effects on both the individual and the market. Scam victims may sustain significant financial losses, putting their homes and assets at risk. Scams involving real estate undermine consumer confidence and damage the sector’s standing. - Loss of trust from customers
Any history of scam or fraud on any properties will also raise an alarm. Genuine customers would would want to send their bookings and reservation to a more secured place. This is to prevent these scammers from having access to their personal details. - Loss of life time investment.
In situations where by scammers manage sell property using fake documents, the investors tends to loose huge sums of money and most of the time the amount involved are never gotten back.
Solutions to Real Estate Scams
- Apartment reservation request must be made with full or down payment.
To confirm any booking made on any of the booking platforms, make sure the customer has made part payment of the reservation. Make sure your payment methods are stated on these platforms to prevent any scam. - Confirm the identity of the customer before pick up
When a customer requests for a pick up at the airport, make sure you have spoken to the person on phone, seen pictures of the person at the airport and have confirmed the flight details with the immigration. Never send money to an unknown customer. - Vet New Contacts
It’s simple to presume that uninformed members of the public believing someone they clearly shouldn’t trust accounts for the majority of real estate scam cases. That isn’t always the case, though. When interacting with individuals who represent themselves as licensed experts, particularly if they approach your office out of the blue, your staff members should also exercise caution. - Consult Legal and Financial Professionals
Seek unbiased advice from legal and financial professionals who specialize in real estate investments. They can help you assess the legitimacy of an opportunity and ensure you understand the associated risks. - Prefer face to face meet ups with clients
When buying a property, make sure you have seen the owner in person and also inspected the property and its documents in person. If it is an off plan investment, make sure you have visited the site to see the progress of the project. - Use useful real estate application
Get used to some useful applications for the management and organization of your property. Some of these applications help verify whoever books your property and even allow other users to rate them.What To Do When You Get Scammed
When you get into an unfortunate situation and you suspect you have been scammed, alert the appropriate authorities as soon as possible. You can alert your bank, local authorities like the police, and the Criminal Investigation Department (CID). You shouldn’t wait till the issue gets out of hand before you report. Timing is very important in situations like this because early detection and reporting can help stop the fraudsters from withdrawing the funds and retrieve your money.
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Google’s People Ask Questions – FAQs
- How do you know if a buyer is scamming you?
- The deal is too good to be true.
- They only accept wire transfers and other non-reversible payments.
- Sellers won’t meet in person.
- They send you low-quality photos.
- Buyers send you prepaid shipping labels.
- A buyer overpays for your product.
- Is a cold call scam for real estate?
Flipping scams are sometimes linked to appraisal scams since the fictitious appraisal paperwork is used to support the exorbitant home price. After the house is sold, the “straw” buyer—who collaborates with the flipper—usually refinanced it; finally, the house is let to enter foreclosure. - What properties are likely to be vulnerable to fraud?
unoccupied properties. tenanted properties. high value properties without a legal charge. high value properties with a legal charge in favor of an individual living overseas. -
Is there a scam involving real estate?Real estate scammers often pressure home buyers to send over money or personal information right away. They may use a sense of scarcity to make you believe that you could lose out on the house if you don’t act immediately. Anytime you’re being pressured to take action, this should serve as a warning sign.
- How can you tell a fake buyer?
If you’re a seller, here are a few ways to identify a fraudulent buyer:- The buyer asks to pay outside of your preferred transaction method or choice.
- The buyer offers much more than the listed price for an item.
- A new buyer purchases a high-ticket item or multiples of the same item.
- The buyer asks to change their shipping or residential address to a foreign country.
Conclusion
In order to save yourself from real estate scam, you must buy all your properties from Ghana’s trusted real estate agency, BOT Properties Ltd. They have amazing properties for sale and rent. BOT Properties can help you secure your dream house without going through any form of difficulties. Real estate investment scams can be financially devastating, but by watching out for red flags of real estate fraud and taking the right precautions to protect yourself from falling victim to these scammers.
BOT Properties is the premier real estate company in Accra, Ghana. We are renowned for our expertise in real estate investment and development.
At BOT Properties, we redefine luxury with affordability.