The real estate proved to be a booming business around the world. When handled in the right manner, real estate can give you the best of both worlds more than you can imagine.
Yet, while enjoying the financial security the real estate is giving us, it's about time to consider the flip side of the coin, the real estate fraud. Fraud is everywhere and knowing this common problem in all industries including real estate business should prompt us to prevent ourselves from any real estate deceptions.
The Globe And Mail warns us of the common fraud in the real estate industry that we should be watchful for.
Identity theft and falsification of property Title
One of the most desperate fraud schemes in the real estate business is to rob another person's identity to process false document and claim as the property owner. Signatures are forged to create a signed title ready for selling. After promising the buyer of the secured property upon receiving the payment, the scammer will then run away with the cash and leave the poor buyer hanging, even in debt.
Since title-fraud schemes have become rampant nowadays, the "title insurance" has been implemented to protect both the real owner and the buyer. Yet, despite this insurance, still, be vigilant!
Fake offers to improve your home
In the hope of earning big, scammers tend to appear too good to be true with their offers to do something with your house like renovating your kitchen, change your roofing, and other kind gestures. The Canadian Council of Better Business Bureaus warns every one of the fraudulent "door-to-door contractors" who will use out-of-this-world tactics and offer to entice and deceive clients.
These scammers may ask you to pay right away and will promise to just come back some other time to finish the job. When this happens, do not wait for that person any longer as he is not coming back for you. So, in case you come across these people, get their identification details and do not rely on their verbal explanation, or better yet, just get rid of them for your safety.
Expensive real estate courses and seminars
While it's good to be educated about property investments, it's wiser to know first whether your source of education is legitimate. Some seminars and short-term courses are offered by professional investors, even award-winning real estate speakers, but, you need to consider that not all are "chartered" to handle seminars and teach property investment courses.
Some offer you to attend a seminar that would cost you thousands of dollars for a basic information that can only be searched on the Internet. These kinds of seminars do not necessarily mean a scam but the excessive prices that go with the seminar and the courses are the ones that make it some kind of fraud.
Rental scams
Fraud can easily be done online. For those who hunt houses to rent online, beware! Scammers illegally get online listings of homes for rent and claim them to be their own. You will then be transacting with fake owners and have given your deposit amount already just before realizing you have been tricked. Forbes reports that these scammers will ask for money upfront for the security deposit or broker fee. So, before doing transactions online, make sure the website you are browsing is legitimate.
Remember that while the real estate business has boomed, scams, too, have. So, always be extra careful and don't get trapped!
