There are so many real estate investment opportunities one can venture into. In fact real estate investment has become a huge one when you invest well. While venturing into any real estate, there are some common real estate scams you must avoid.
One of the common real estate scam investors fall into is Deed fraud. This also called title theft or house stealing, is the illegal transfer and recording of real estate ownership without the knowledge or consent of the legal owner. In most cases the fraud involves vacant properties that are not the owner’s residence or belongs to a deceased owner. Perpetuators of title theft target specific types of owners such as vulnerable owners, owners of vacation homes or rental property and those with paid off properties. Once they have identified their target, they perpetuate their actions via several means such as identity theft, forged deed and titles, home equity theft and so on. This they engage in to sell another person’s property without his knowledge. This scammers are well knowledgeable about the home buying and selling process.
One of the most prevalent scams involves fraudulent property listings. Scammers craft property ads that feature properties at unrealistically low prices. To avoid fake listings, always verify the identity and credentials of the seller or owner, inspect the property in person, use a reputable platform or real estate agent. This will help you avoid falling into the hands of unscrupulous people who pride themselves as the real owners.
Rental scam is said to have occurred when a property owner misinterpret the rental property or the terms of lease in order to get more money. It can also be recorded when a victim is tricked to payer higher than he should pay for a rental property. These scams target people who are looking for rental properties. These victims are deceived by overpaying for a property they may have not seen. In order to avoid falling into this scam, always verify the authenticity of the owner of the property, visit the property to be sure of what you are paying for and bargain properly before making any payment. Also make sure you are paying directly to the owners.
Upfront fees are fees you pay out of pocket once your offer on a home has been accepted. Upfront costs include earnest money, the inspection fee, and the appraisal fee. Normally, real estate agents only get paid commission after the sales of properties but a real estate agent imposter ask for money to list you home. You should never pay the total sales price upfront, nor should landlords ask for too much upfront.
This is a scheme designed to lure investor who are looking for high returns, low risk or unique opportunities in real estate. These scammers may sell one property to several people at the same time leaving them in confusion as to who legally owns the property. This has majorly been a serious obstacle to investors who want to invest in real estate. Another way Investment Scammers operate is that they may try to lure people into investing in fake real estate developments or other fraudulent investment opportunities. This is, by far, the most common scam. In fact, this is so common that no-one actually thought they would fall into such scam.
When it comes to property investment, it’s important to be aware of potential property scams. This will help you avoid losing money or investing wrongly. In investing in real estate it is better to deal with a well known, registered real estate agent who has a good track record.
You can contact edoproperty.com to guide you on the right process to avoid falling into scams.
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