Top Property Scams to Watch Out for in South Africa
Category General
Property scams in South Africa are becoming increasingly prevalent and sophisticated. Scammers are evolving their tactics, intercepting emails, messages, and even exploiting banking apps to deceive unsuspecting individuals.
Common Scams in Property Transactions
Property transactions are a prime target for scammers, and it is crucial for buyers, sellers, and renters to remain vigilant. Scammers often clone emails and create fraudulent invoices to steal money from unsuspecting victims.
Email and Payment Fraud
Scammers frequently use fake email addresses to send fraudulent messages and invoices. It is essential to safeguard your private and banking information and to verify the authenticity of any payment requests. Never transfer money unless you have personally verified the source of the email, the nature of the request, and the bank details provided.
Johan Meyer, a licensee for a prominent property group in Pinelands, advises buyers never to part with money or pay a deposit unless the request has been verified. Funds should be held in a trust account, preferably with the respective conveyancing attorney.
Verifying Property Ownership and Authenticity
It is crucial for property buyers to confirm that the property they are viewing is genuinely owned by the seller or landlord. Scammers often show only the exterior of a property, claiming the owner is unavailable for a viewing.
Additionally, buyers should ensure that a signed disclosure document is available, outlining all patent and latent defects. Approved and up-to-date plans should also be accessible.
Caution for Sellers and Buyers
Sellers should be wary of unscrupulous agents who claim to have buyers but fail to produce a written offer to purchase. Furthermore, buyers should avoid responding to fake property listings online, which often feature cloned photos and information from other properties. Lack of verifiable information about the person advertising the property should raise immediate red flags.
Identifying Red Flags
Price and Payment Concerns
Be cautious if the asking price of rent seems too low. Making payments upfront without verification is a significant red flag. No rent or deposit should be paid without confirming the agent's legitimacy.
Tenant Verification for Landlords
Landlords must also verify tenants thoroughly. While it is common for tenants to pay rent in advance, beware of those who pay a few months upfront and then cease payments. Tenants offering to pay a higher rent than usual can also be a cause for concern.
Moreover, landlords should clarify who will reside in the property, as tenants may secure a property for someone else. Late or skipped rent payments without prior notice should be addressed immediately, following proper legal procedures if necessary.
Final Thoughts
Property scams can be detrimental, but by staying alert and following the advice of experienced property professionals, you can protect yourself from falling victim to these schemes. Always verify information, trust only credible sources, and take immediate action if something seems amiss.
Author: Louw & Coetzee Properties
