Over the previous twenty years, web websites comparable to Property24, Facebook Marketplace and property company web sites have changed the likes of newspaper classifieds and property company window commercials as the preferred methods to purchase and hire property in South Africa.
And whereas this permits would-be patrons or tenants to solid a wider internet to discover their dream house, it has additionally given rise to more and more refined property scams.
These scams typically contain fraudsters posing as authentic property house owners or actual property brokers and utilizing on-line platforms to promote properties that don’t exist or aren’t out there to hire or buy.
While the anonymity of the web has made it a lot simpler to facilitate these scams, some will go as far as to meet unsuspecting patrons and renters in particular person to appear extra authentic, solely to vanish as soon as the funds have been transferred.
Here are five fashionable property scams to watch out for:
1. Fake rental listings and brokers
In this occasion, fraudsters will promote a rental itemizing on-line (typically at a really engaging charge) and wait for a would-be tenant to make contact. They will make excuses for why the property can’t be seen in particular person however emphasise that there’s plenty of curiosity and ask the tenant to pay a small deposit or software price to safe their place, earlier than taking the itemizing offline and disappearing with the cash.
This might sound far-fetched, however in a extremely aggressive rental market comparable to Cape Town, some tenants are prepared to do something to discover a well-priced house, together with handing over cash earlier than seeing a property.
2. Phishing scams
In this type of cybercrime, fraudsters will intercept emails between a purchaser and vendor to pose as a authentic actual property agent or conveyancing lawyer to divert the client’s deposit into their very own checking account.
As a service supplier tasked with safeguarding deposits, we’ve seen how more and more frequent this crime has turn into, with even probably the most digitally-savvy patrons being defrauded of giant sums. Recently there was a case the place regulation agency ENS Africa was ordered to pay R5.5 million to a consumer utilizing their belief account for her house deposit; this consumer fell sufferer to a phishing assault orchestrated by somebody posing as one of many agency’s workers.
Taking the dangerous ‘human element’ out of the method and as an alternative entrusting your deposit in a extremely safe and clear third-party different, which additionally affords a financial institution assure, is the easiest way to forestall this from taking place.
3. Government housing help scams
This rip-off is especially devastating as a result of it targets lower-income people who’re determined to obtain government-assisted housing, asking victims to pay money to be moved up the lengthy ready listing. Scammers will typically create official-looking paperwork to seem extra authentic nevertheless it’s vital to do not forget that no cost is required when making use of for a authorities housing subsidy or a Finance-Linked Individual Subsidy Programme (FLISP).
4. Identity theft scams
This is a really refined scheme, focusing on unsuspecting householders who aren’t trying for a brand new property to hire or purchase. The scammer obtains private particulars from the proprietor and makes use of these to create false paperwork transferring the property into their identify.
Once the property has been transferred, the scammer will contact the authentic proprietor’s financial institution in order to take out a brand new bond towards the property, earlier than disappearing as soon as the cash reaches their account – doubtlessly defrauding the sufferer of tons of of hundreds of rands.
5. Timeshare scams
This situation entails a fraudulent gross sales agent promoting timeshares in non-existent luxurious properties or properties that aren’t really out there for buy, utilizing shiny pitch decks and ‘too good to be true’ reductions.
To decrease their possibilities of being caught, these scams typically goal abroad vacationers or locals trying for a vacation house in a distinct province and aren’t ready to confirm the property in particular person. Fraudsters typically make use of high-pressure gross sales ways and false guarantees of excessive returns on funding.
Avoiding scams
The two golden guidelines when it comes to avoiding these situations are to keep away from giving out private data to non-verified sources and to be additional cautious with cash transfers.
To keep away from falling sufferer to a property rip-off, it’s essential to be cautious when coping with unfamiliar actual property brokers or property builders and to completely analysis any property funding alternatives earlier than handing over any cash. Opting for a financial institution assure fairly than a money deposit or EFT is one other approach to confirm the transaction and guarantee its security till you will have keys in hand.
Remember, the perfect defence towards scams is to be educated about their strategies and belief your instincts – in the event you’re not sure a couple of scenario or provide say no.
Jackie Smith is head of Buyers Trust, a subsidiary of ooba Group.
