Getting scammed or ripped off your hard-earned money should be the last thing on your mind after working to raise funds to invest in a real estate asset. But as things currently stand, it is important to ‘shine your eye’ or your hard-earned cash will be gone with the wind (or used for dorime purposes).
The real estate industry and property market, like other sectors, have a fair share of fraudsters looking to defraud potential property buyers and investors through well-thought-out schemes. Popular scams in the Real Estate Sector include:
- People selling properties they do not own and making away with the money.
- Property owners selling the same property to multiple people and absconding.
- People selling poorly constructed or reconstructed buildings as newly built.
- People selling property in dispute or not approved by regulatory authorities.
- The popular transfer fraud scam (When a fraudster poses as the seller or broker to trick you to transfer money.)
Most people feel they are very street smart and cannot be defrauded. This is usually the prelude to loss of money as Real Estate frauds have become more creative and are more structured in the way victims are targeted. In this piece, we will share some tips to prevent your money from vanishing into thin air.
Chill…Don’t Rush the Process
Once the money leaves your account, it is not coming back. Your prayer then would be for your transaction to be genuine, a common tactic scammers use in trying to speed up the buying process. They persuade you to make a down payment which serves as a commitment and then fabricates different stories to extort more money from you.
In cases like these, the deal sounds too good to be true and you would want to act quickly so that you don’t lose the offer. Chill, push back the adrenalin rush and question the transaction. There are great deals out there but exercise appropriate caution.
It is wise to be careful.
Avoid Paying Cash
If the homeowner or agent is asking you to pay in cash, alarm bells should go off in your head immediately.
Cash payments leave no trace unlike payments initiated by a bank. Insist on a means of payment that provides you with verifiable proof e.g, Cheques, transfers, or banking premises payments. These serve as evidence if the transaction hits a snag.
What can be asserted without evidence can also be dismissed without evidence.
Verify The Other Party in The Real Estate Transaction
Trust is a strong emotion and it is not a good idea to let it lead blindly if a lot of money is at stake. When there is a Real – Estate transaction to be carried out, research everything about the other party. Ask people for referrals and review their previous work before making a payment.
Do your homework well to prevent stories that touch.
Avoid Email Scams
The internet has made our lives considerably easier and more convenient but there is a price to pay for all the resources that the internet provides.
Business Email Compromise through phishing links is one of the most popular scam methods all over the world and the Real Estate sector is not excused from its machinations. Confirm with your broker or the seller directly before carrying out any online transactions demanded from you or when you receive an unusual email relating to the transaction.
It is advisable to refrain from handing out any personal information or bank information over the internet or phone as a general rule, particularly if the situation does not feel quite right.
Keep your details tight to your chest.
Go For Site Inspection
If your broker or the seller prevents you from inspecting the property, run away from the deal as fast as possible. Run as if you’re vying for Gold in the 100m Olympic final. This is the mother of all red flags.
Insist on an inspection and if your request is not granted by the property owner or broker then it is advisable to terminate the real estate transaction immediately.
Don’t be deceived. Seeing is believing.
Buy from Reliable and Established Sources or Appoint Reliable Agents
You can take away the headaches associated with buying a property when you buy from a reliable/renowned developer or appoint a reputable agent to search for you. Do some research. It is as simple as typing www.afrilandproperties.com.
When looking to commit funds to secure a property, patronise an established Real Estate company to prevent you from falling prey to scam artists. It is better to part with a small sum as agency fees than lose the entire sum to fraudsters.
If you think hiring a professional is expensive, maintain the same energy when an amateur gives you substandard work.
Afriland Properties Plc is a property management, investment, and development company, offering end-to-end services along the real estate value chain, from management to joint-venture investments. We bring innovation to the real estate sector in Nigeria and other African countries by drawing on experience, new competencies, and technology to achieve continuous improvement in service delivery to our clientele.
Let us walk hand in hand with you on your real estate journey, offering expert advice and providing you with the best deals all through the way.
Contact us
Website: www.afrilandproperties.com
Email: biz.dev@afrilandproperties.com
Or Call
Boye: 08038335722
Chika:08033199436
