In most cases, purchasing real estate properties represents one of the most expensive transactions done by a person and, when involved in this, it is necessary to verify all the aspects of the respective property as some sellers can engage in various frauds, from minor matters (such as not disclosing different flaws of the property) to selling properties that do not exist or which they do not own.
Thus, as a buyer, it is compulsory to verify the property’s title report, which provides a clear image of the respective real estate. At the same time, the buyer should also examine the property as some sellers will typically not disclose small problems the property has; in this sense, it is recommended to do the due diligence procedures.
Real estate frauds are not done only by the sellers, the real estate brokers can also engage in various forms of frauds in order to gain money out of the respective transaction. Thus, one of the most common ways through which real estate agents scam the clients is by adding non-existing fees to the respective transactions, especially when the buyer is not fully aware on all the types of taxes and fees applicable to the sale procedure.
When engaging in purchasing a real estate property, in order to avoid any fraud, it is recommended to receive legal assistance from persons with experience in this field and who can assess the legal situation of the purchase process as, for example, in certain cases, the real estate agent can mislead the possible buyer by not disclosing relevant matters related to the property’s documents. Thus, one of the most efficient ways to avoid real estate frauds is by observing the legal procedures available in a given jurisdiction, the taxes and fees applicable by the law, the rights and obligations of all the parties included in the transaction.
With the rise of the internet, real estate properties available for sale can now be advertised online and numerous persons have become the victims of various scams; regardless of how a person finds an attractive real estate offer, it is absolutely necessary to meet the owner and see the property, prior to signing any documents.
Sellers can also request a higher price than the market valuation price and this can be done by providing fake documents stating that the property’s assets value more than they actually do, this being a common real estate scam.