As I start off on this topic, I can already sense that it will finish with a plug about the need to work with a good agent that you trust. And as shameless as that may sound, it is all too true at the same time.
The world’s fastest growing industry is credit card fraud, and I can’t go one day without receiving a phishing phone call from some scammer looking for money or information. Technology has made it easier to transact with each other than ever, but unfortunately it has also made it easier for fraudsters to interfere with or steal from us too.
Did you know we have a real estate podcast? Listen to the Last Honest Realtor right here.
Real Estate Scams Pose a Real Threat
Of course, the real estate industry is not immune to these crimes and given the size of the assets we deal with the stakes are as high as they come. There are so many different types of hustles out there and generally you only hear about the more major stories.
You may recall case in Toronto that involved a scammer who managed to sell properties that didn’t belong to them by using fake credentials. This individual manages to pose as the owner of multiple properties, complete with forged documents and fake identification and list them for sale online, attracting unsuspecting buyers.
Once a buyer was interested, the scammer would conduct a “showing” and then negotiate a sale. After receiving deposits and initial payments, the scammer disappeared, leaving the buyers with no recourse.
Another even more complex case involved a scammer who managed to get the title to someone else’s property and sell it from underneath their nose while they were away on sabbatical. Imagine coming home from a three-month trip and finding your house had been sold to another person without your consent or knowledge!
Do you have questions about working with a real estate agent? Here are some recent blog posts you might be interested in:
- Why Hiring a Friend to Sell Your House Might be a Bad Idea
- Can You Fire Your Realtor if it’s Not Working Out?
- Do You Really Need a Buyer’s Agent?
They Can Happen to Anyone
The list of scams goes on and on, and there’s a ton more that you never even hear about. They rank from the more major such as those listed above, down to the more minor rental scams or misrepresentation from an owner, landlord, or agent. And all of these incidents have prompted increased awareness and calls for better protections in the real estate sector to safeguard against such scams, but there are steps you can take to prevent yourself from becoming another statistic.
Steps to Avoiding Real Estate Scams
First and foremost, as with anything else in life, learn to trust your gut and if you feel something looks too good to be true, it probably is! I’m not saying, you can’t find a deal in this market, or that good things don’t happen, but if you find yourself in a situation working with someone you don’t know and something feels off – call a friend or get a second opinion before moving ahead.
Real estate is a complex industry with a lot of ins and outs. If you have questions about the market, here are a few more blogs to read next:
- Is it Better to Buy First or Sell First?
- What Happens if You Regret Your Home Purchase?
- Do You Need an Open House to Sell Your Home?
The Best Defense? A Good Offense
Which leads me to my next point about knowing who you are working with and building a trusted team of professionals you can call on. You knew I would end up here, but as I prefaced in my introduction a professional agent whom you trust is going to be your first line of defense against any scammer.
Regardless of whether you are renting a unit, buying or selling a good agent can verify identities, match them with public records of title ownership, and hold funds in trust to prevent any fraudulent behavior from taking place within a transaction. In addition, a good lawyer who will likely charge you slightly more for closing on a property, will undertake their due diligence to make sure you don’t get caught buying a property from a wrong person or one with a ton of debt attached to it.
Looking for trustworthy real estate advice? Get in touch with us today by calling 416.642.2660 or emailing admin@torontorealtygroup.com.
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