When it comes to real estate frauds, it pays to know what the frauds are and how to avoid them. The following real estate frauds are ones that are done most commonly and discuss how you can bypass them.
The Internet Nigerian Scam
This is a popular fraud that happens when you buy real estate on the internet. There are different versions of this fraud, and it is the most obvious one. These fraud artists use IP hiders or proxy servers in order to get through geolocation software. That way, no one can determine his or her address.
All these scammers have to do once they complete this is to get into a site such as Craigslist, create an account, and start posting ads containing properties on them.
If you inquire about one of these properties, these scam artists will promptly make an excuse why they cannot meet up with you in person in order to sell the house, or tell you that they are looking for good religious people to buy this property, along with a request for you to give them your personal information usually reserved for an application form.
They encourage you to go and drive by the property. The email dialogue continues, and they give you a fee, telling you that they are going to mail the key to the property for you for a certain price.
Of course, this never happens. Your hard-earned money simply goes to someone in another country that did not get the money fairly. It is a better idea to make real estate transactions in person rather than through the internet, and never take any one who will not meet up with you to discuss buying or looking at a certain property.
Chances are they are swindling you if they refuse to do this.
Another popular real estate fraud that is done by people is to hand you a false deed. This is done so that the owner can get a loan secured against a property. If the owner does not react to the first warnings of the bank about the danger you are in, then the real estate property buyer could be in danger of being foreclosed by the bank.
When you decide to get a place, make sure to be careful when it comes to the deed that you are signing. Never sign any deed that you have not read in its entirety, keep your deeds and other important documents inside a safety deposit box, and throw out any peddling loan lenders if at all possible.
The dangers of being scammed are very real, although being scammed from real estate transactions is less common than other types of frauds.