Real Estate Fraud: How Not to Fall for a Fake Realtor

Fraud in the real estate market is a serious threat to buyers and renters. Fake realtors and real estate agencies use various schemes of deception, which can lead to significant financial losses. To avoid being deceived when selling an apartment or renting a home, it is important to learn to recognize fraudsters and verify realtors.

Main Fraud Schemes of Realtors

There are several common fraud schemes in real estate that are often used by fake realtors:

• Fraud when selling an apartment. Here, fraudsters provide fake documents, for example, fake ownership certificates or documents confirming the right to dispose of the property. Often such transactions turn out not only illegal but also risky for the health and life of clients. In some cases, a non-existent apartment or an apartment under arrest is sold.
• Scams with security deposits for housing. Fraudsters may ask for a deposit for renting an apartment or house that is already occupied by other tenants or does not exist at all. Manipulation with limited offers is often used to create a false sense of urgency.
• Fake real estate agencies. Some fraudsters register fictitious companies with fake licenses. Such agencies offer 'beneficial' conditions to lure clients, but disappear after receiving money.
• Real estate scams through ads. This is a common scheme where attractive ads for the sale or rental of housing are posted on popular websites. Fraudsters ask for money for a 'deposit' or prepayment for an apartment that does not exist or is located elsewhere.

All these fraud schemes can lead to serious losses if caution is not observed.

How to Check a Realtor Before a Deal

To avoid fraud, it is important to thoroughly check the realtor you plan to work with. The following steps will help reduce risks:

1. Request a license or registration certificate. Official realtors are required to have appropriate licenses confirming their activities. If the realtor cannot provide such documents, this should be a red flag.
2. Check the reputation of the agency. Look at reviews of the company on independent platforms. If there are many negative reviews about the realtor or agency, this may be a sign of fraud.
3. Request confirmation of rights to the property. The property seller must provide documents confirming their ownership rights. Dishonest realtors may hide information or even provide fake documents.
4. Read the contract carefully. Carefully review the terms of the contract, including commissions and all obligations of the parties. Transparency of conditions is an important indicator of a realtor's reliability.

How to Recognize Fake Apartment Documents

Fake apartment documents are a common fraud scheme that can lead to financial losses. To avoid deception, pay attention to the following points:

• Data mismatch. If the apartment owner's data does not match the data in the documents, this may be a sign of forgery.
• Unusual quality of documents. Fraudsters often use low-quality copies or documents with incorrectly formatted stamps. If you notice something strange in the documents, it is better to double-check them.
• Absence of an extract from the register. The seller must provide a current extract from the Unified State Register of Real Estate, confirming the ownership of the apartment.
• Suspiciously new documents. If the documents were obtained recently, this may also be a sign of fraud. Make sure the seller does not provide documents that were issued too quickly or without explanation.

How to Avoid Scams with Security Deposits for Housing

Scams with security deposits for housing are one of the most common fraud schemes. To avoid such a scam, follow these recommendations:

1. Do not transfer money before signing the contract. The deposit should be made only after the rental agreement is signed by both parties.
2. Check the landlord's documents. Make sure the landlord is the owner of the apartment and has the right to rent it out.
3. Read the rental agreement. Carefully review the terms of the agreement, including the amount of the deposit and the rental period. All conditions must be specified in the document.
4. Use secure payment methods. Make the payment through a bank transfer or another verified method that ensures the transaction is recorded.

If the landlord refuses to provide documents or insists on urgent payment, this may be a sign of fraud.

Conclusion

Fraud in the real estate market is a serious threat to everyone planning to buy or rent a home. To avoid becoming a victim of fake realtors, it is necessary to carefully check documents and the reputation of real estate agencies. Exercising caution and attention to detail will help avoid scams with deposits, fake documents, and other fraud schemes.