Real estate scam are becoming more frequent in Colombia, and especially in major cities like Bogota, Cali and Medellin. Their are quite a few out there offering their services in order to scam those interested in renting or buying a property. These supposed professionals try to get your money and then just disappear.
So lets have a at the most frequent real estate scams and how to avoid them, so that you are better prepared buying a new property.
The 7 most frequent real estate scams and how to avoid them
1-Properties with multiple owners: It is frequent, that more than one person lives in the house that you want to buy, and that this property is owned by more then one person. In this situation it may be that someone receives the amount that you have to pay actually to a third person and without knowing you run the risk to pay twice.
How to avoid it? Make sure that you or your agent does a through out research on the property ownership consulting always the certificate of tradition and freedom. Additionally, it is necessary to specify in the contract who will receive the money.
2- Hidden Defects: Most likely you do not inspect the place you want to rent or buy very well, and possibly the seller will take advantage of this not mentioning the hidden defects which the property might have.
How to avoid it? You must visit the property personally and always ask for anything that causes suspicion. Clear your doubts about the maintenance, the coexistence and the security. Do not detract importance from the operation of basic services and facilities such as heaters, stoves and showers, among others. Always ask everything. A good real estate agent will help you to perferm a home inspection before closing any deal. .
3 - Suspicious advertising: There is no 100% effective way to identify the scammer, however there are elements that can help to discover them. For example, properties with prices that are just too low are very often suspicious.. Be careful with a downpayment asi it might occur that the scanner disappear after your first payment and you can not locate him anymore.
How to avoid it? Never pay downpayment with sellers you have never personally dealt with. Ask always for references and make sure he is a person with experience in the field.
4- Foreign scams: This scam occurs when the property owner is abroad and requires you to make a transfer so that he can send you the keys of the property.
How to avoid it? You must always ask the owner to conduct the negotiation under the representation of a real estate agent with whom you can have personal contact. We have already told you that you should never pay any money without treating the person personally. If the lessor or seller insists on carrying out all via e-mail because he is not in the country, you should become suspicious.
5- Personal Data: This is one of the most common types of real estate scams. It happens when a person is interested in your property and asks for your personal information, including banking information in order to make a downpayment. That is an easy way to get all the information they need to steal your identity and finally your money.
How to avoid it? Never give your personal data to someone you got to know on the web, much less your bank details.
6- Fake real estate agents: There are many who pretend to be a real estate agents and ask you for advancement in order to secure a deal.
How to avoid it? First of all it is advisable to investigate the agency with which you want to work and especially the real estate agent. Tell the agency about the deal you are doing with their agent. Forget to all payments to set aside a real estate deal, as that is something real estate agencies do not do.
7- Research expenses: There are companies that conduct research about those who are buying or renting a property. Since these expenses are non-refundable, their is a good chance that these companies will never research anything and just disappear.
How to avoid it? If you do not have a professional agent at your side, then ask for personal references from friends, companies where they worked before, but if possible do not seek the services of these tips of research companies, unless they have a very good reputation.
Being a victim of real estate scam is unfortunately too common . That is the reason why we recommend you to follow these simple tips we just discussed and to be always attentive. Anyway it is better that you work with a serious real estate agency and reputable agent certified by the corresponding guilds.
We recommend you reading for more information the article: 3 key questions for real estate buyers since working with a real estate agency not only helps to avoid the real estate scams mentioned but also has numerous benefits when buying a property.