Top 3 Real Estate Scams and How to Avoid Them

Posted on Feb 24 2016 - 6:41am

Real Estate ScamsLet’s face it; no one likes to be a victim of fraud. It’s an experience nobody would ever want to encounter, especially when it involves their hard-earned money. Unfortunately, many scams today go beyond the “get rich quick scheme” deals, and offenders have ventured into the real estate world.

Online Leasing Scams

You find a property advertised at a low price. You call the “owner,” and they say that they’re out of town or unable to meet you at the site. You agree to meet them at the proposed venue to sign an agreement and collect deposits. You then happily head to the property only to find out that the house is currently occupied — and worse, the supposed owner doesn’t really own the house.

These types of criminals usually scrape off legitimate ads from the Internet and pose as the property owners or agents. As a buyer, insist on meeting the agent at the premises. Scamwatch, which is run by the Australian Competition and Consumer Commission (ACCC), suggests that you should watch out for urgency deals and low-risk investment promises. This precaution applies to all properties for sale around the globe.

Home Improvement Scam

Local contractors come knocking at your door, claiming they can work at a low price because the materials they’re going to use are leftovers from previous job. They do part of the job, take their pay and promise to finish the remaining the day after. You probably will never see them again.

Before hiring any contractor for your real estate in Papua New Guinea, suggests checking for references to ensure the person or company has a reputation for quality work.

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Ownership Fraud

According to The Globe and Mail, this type of fraud happens when a scammer buys fake documents and poses as the property owner. They transfer the property to their names, and get a line of credit against the property. They will then take off with the money and leave you with the future payments. Getting a Title Insurance is the best possible solution for this, as insurance protects you from any existing claims against the property’s title like unpaid debts.

The worst mistake you may make is to think that it may never happen to you. The biggest scams in real estate in Papua New Guinea have occurred in the open, and preys on the gullible, proud and brightest people.