To avoid scams while investing in real estate, buyers should thoroughly investigate the developer's track record, the details of the project, including ownership details, request written papers instead of spoken words and consult specialists to guide them through the entire investing process. Know more tips to avoid real estate scams.
Most Reported Real Estate Scams: How to Avoid
Beware of being scammed while dealing with commercial real estate agents in Toronto.The
ratio of real estate scams is at the surge in this modern era. Criminals target the clients creatively.
Here are the most reported scams listed below. Continue reading to get educated about the scams
and the tips to prevent them.
1. Escrow deposit scam:
If you receive an email, text, or call from the representatives of an escrow company, and they
instruct you to deposit your escrow amount. Remember that scammers create fake websites
exactly similar to the lending company you are working with. In addition, they use many spoofing
tactics to target consumers.
Following the instructions, you become the fraud victim. Then, scammers withdraw your funds,
leaving you with only a few options to retrieve them.
To prevent this fraud: Before depositing escrow amount, call your lender to verify the escrow
company. Never click on any links you received in texts or emails, and do not pay online without
confirming wire instructions on a call with a live person from the lending company.
2. Out of country statement:
This is the most common fraud with many victims who trust easily. In this real estate fraud, the
property owner claims they cannot make you visit the exact location you are about to buy
because they are out of the country.
They convince you to sign the contract. They promise you to transfer ownership and keys via
mail once you deposit the advance.
How to prevent from "I am out of the country" scam?
For safe and secure property buying, do not pay a single penny without inspecting the property. If
the real estate agent says they are out of the country and not available to make you visit the place,
If you belong to Toronto or its suburbs, you can search for Toronto mergers and acquisitions
to find original dealers to avoid scams.
3. Personal details:
Some fraudsters usually call you and ask about buying or renting a p