AVOID THIS PROPERTY SCAM

Within these challenging economic times, the number of property scams are on the rise.  RE/MAX of Southern Africa has received several reports of various real estate agent scams taking place and warns consumers to remain vigilant against them.

“With interest rates climbing, times are tough for many South Africans. This could lead to more opportunist crimes as people become increasingly desperate. Consumers need to be very cautious not to hand over money to anyone before triple checking that they are who they claim to be; and always be extra cautious of anyone who reaches out to you over social media or other online portals,” warns Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

“In most of the scams of which we have been made aware, the scammer will request money for a property that they are not in a legal position to offer for rental or sale. The fraudster might place an advertisement for a property or contact a person directly and are usually offering a deal that is too good to be true. Often the advertisement will include photos of the property, and in some cases, the scammer might even include a fake contract that is ready to be signed. Contracts are also easy to copy and company logos are easy to download off the internet, so consumers need to be vigilant. The property could either be a real listing copied from property portals, or it could be entirely fictitious. But, as soon as the money has transferred, the scammer then disappears,” Goslett explains. 

The most recent and prevalent con is targeting potential tenants. “We are aware of an individual pretending to be a RE/MAX Living rental agent. This is a scam and the address being used is remaxlivingmanagement@gmail.com which is not an address that we own or use (we have reported the address). The individual is advertising ‘fake properties’ on a website called RentUncle. We have tried to contact RentUncle without success. The scammer is requesting a rental deposit upfront before a viewing is even conducted. This is not something which we would request as an agency,” says Susan Watts, Broker/Owner of RE/MAX Living.

To help consumers avoid this scam, Watts shares the following tips:

• Agents should always have a copy of their FFC (Fidelity Fund Certificate – a property practitioners license to trade) and it is the clients right to see the FFC.
• A client should always do at least three Google searches to ensure that they are working with a reputable agent:
  1. Google the cell number the agent is using to correspond with you
  2. Google their email address and check that the email address corresponds exactly with a reputable brand online (e.g., remaxliving.co.za, remax.co.za or remax.com)
  3. Google the portal on which you submitted your enquiry. For example, Google RentUncle and look at reviews on the portals you are using. Any property on such a portal should also be on the agency’s own website so if it's not, that is a reason to be wary.

“The above is not a fail-safe but it will certainly help. RE/MAX Living cannot be held responsible for scams such as these but will endeavour to alert the public as best as we can,” says Watts.

Con artists have also been known to create a fake profile on social media and claim to work for a well-known property group. The agents then appear to be legitimized by the brand but are in fact in no way affiliated to the office. Some giveaways of a fake social media profile are if the profile is newly created and if there are very few posts and friend connections on the profile. You can also search the brand’s website to confirm whether the agent actually works for the brand they are claiming to work for.

“Unfortunately, there is no foolproof way to avoid being scammed as con artists are getting increasingly sophisticated. Sometimes, you will just need to trust your gut. If at any stage of the process you feel there is something wrong, it is rushed with unwarranted pressure, information is withheld, or it all seems too good to be true – take the time to do one or two extra checks. Google the company and call the office from the website or even better, work with a property practitioner who you have come to know and trust and ask for their help. Pay attention to the warning signs and only work with agents from a reputable agency that can be verified and trusted,” Goslett concludes.