Property scams to look out for in South Africa
Category Property Market
Property scams are becoming more prevalent and sophisticated, according to the Seeff Property Group.
From scam emails to confidence tricks, Seef said that scammers are getting smarter as they intercept emails, messages, banking apps, and more.
Property transactions are no different, with Seeff warning that buyers, sellers and renters must stay alert for red flags that could undermine a property transaction or scam them out of their money.
Vigilance is partially required for money transfers and payments, and it is well-known that scammers clone emails to scam money out of unsuspecting customers.
Fake email addresses, fraudulent emails and invoices are all part of these scams.
"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," said Seeff.
Johan Meyer, a licensee for Seeff Pinelands, said that buyers should never part with money or pay a deposit unless they have verified the request. The money should be held in a trust account, preferably that of the respective conveyancing attorney.
Registered agents with the Property Practitioners Regulatory Authority (PPRA) can also ensure buyers and tenants are not scammed.
Property buyers should also confirm that the property that they are viewing belongs to the owner or landlord.
Scammers often only show the outside of a property, stating that the owner is not home to view.
Gerhard van der Linde, MD for Seeff Pretoria East, added that property purchasers should also check that a signed disclosure document is available, disclosing all patent and latent defects. Approved plans should also be available and up to date.
Sellers also need to exercise caution when dealing with unscrupulous agents who claim to have a buyer for the property but fail to produce a written offer to purchase.
Tiaan Pretorius, manager for Seeff Centurion, added that buyers should not respond to fake property listing online.
These fake listings often give cloned photos and information from other properties and can be challenging to fund.
If one cannot find information about the person advertising the property online, it should immediately raise a red flag.
Too good to be true
Price is another concern, and one should be especially cautious if the asking price of rent looks too low.
Another red flag is making certain payments upfront. No rent or deposit should be paid over without the verification of the agent.
On the other hand, landlords will also need to verify the tenant.
Although it is common for tenants to pay rent in advance, landlords must be careful of swindlers who pay a few months in advance and then don't pay again.
Tenants that offer to pay a higher rental could also be a red flag.
In addition, it should be clear about who resides in the property, as there are instances where tenants look to secure a property for someone else.
"If the tenant starts paying late or starts skipping rent payments without alerting the landlord, it should be an almost immediate red flag. 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," said Seeff.
Author: Businesstech
