Three Most Experienced Real Estate Scams

The investment scams abound massively at all levels of the real estate market.  The agent may embezzle millions of money while the contractor may exploit the property owner millions of dollars.  Therefore, you should protect yourself through the application of various measures of legwork and vigilance. Consequently, you should exercise common sense as well as the skepticism. Here are three most experienced real estate scams.

1. Online rental scam

You may find a rental property being advertised online through classified sites such as the Kijiji and Craigslist.  The ads may use the photos and information clearly describing the property that has already been “scraped” or withdrawn from the legitimate ads like those on the MLS. Consequently, the scammer may impersonate the agent, property manager, or the landlord and then respond to the calls and emails from prospective tenants. The scammer may propose to meet the renter of the property site so as to exchange the house keys, collect rental deposits, as well as

 

2. Title scam

This is one of the devastating scams for property owners.  It usually begins with identity theft. In most cases, the scammer may present false documents so as to pose as the legal owner of the property. He may use forged documents to transfer the property ownership from the legal owner to the buyer.  Additionally, the scammer may use the forged documents to secure the mortgage against the property. Immediately after receiving the money, the scammer leaves the owner on the hook for paying for the debt.  These forms of scams are highly experienced in homes or houses that are free and clear of the mortgage.  The old homes are likely to be possessed by the old people who are less aware of the effective measures to guard the property against theft.

It is highly advisable for the buyer to first inspect the property before doing the transaction. The “Title insurance” is considered as the best measure of protection against Title scam.  The title insurance also guards the property owner from the existing liens more so, against a property’s title, encroachment issues, and errors in public records and surveys.  Such liens include unpaid taxes, unpaid debts from utilities and mortgages.

3. Home-equity and Foreclosure scam

The scammers may take advantages of the property owners who run short on funds for various liabilities such as the mortgage payments.  The Foreclosure scams occur when the property owner experiences financial difficulties especially in making mortgage payments. The scammer approaches the owner and offers to give a loan cover expenses as well as consolidating any pending loan in exchange for the upfront fee.  Furthermore, the scammer may convince the owner to sign an agreement to transfer legal property title.  Immediately after the transfer is completed, the scammer may ignore all bills and taxes of the owner and remortgage and absconds the property leaving the owner without a house but still in debt.

signing a tenancy agreement. The victims will realize that were conned when they show up at the property site just to discover that the apartment is already occupied.