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The real estate market remains one of the areas where fraudulent schemes are especially common. Unscrupulous realtors and fake agencies take advantage of citizens' legal ignorance and the desire to make deals on favorable terms. As a result, buyers, tenants, and even property owners risk losing money, finding themselves in disputed situations, or becoming victims of scammers.
Realtor Fraud Schemes
Real estate fraud is implemented using various methods, from rental scams to document forgery for apartments. Among the most common schemes:
- Fictitious rental. Scammers post ads for apartment rentals at a low price, requiring a prepayment for viewing or booking. After receiving the money, they disappear.
- Sale with fake documents. Fake certificates of ownership or front persons posing as the owners of the apartment are used.
- Advance payment for a non-existent deal. A fake realtor promises a profitable sale or purchase, takes a deposit, but then stops communicating.
- Contract substitution. The owner signs a document whose terms differ significantly from the preliminary agreements, leading to financial losses.
- Fake real estate agency. Such companies create the appearance of legitimate activity but aim only to collect prepayments for services that are ultimately not provided.
Such schemes are found in large cities with high demand for housing and in small settlements where control over real estate transactions can be weaker.
Fake Real Estate Agencies
Some fraudulent schemes are implemented through pseudo-companies posing as official real estate agencies. They open offices, create websites, attract clients with advertising, but their main goal is to obtain money without fulfilling obligations.
Signs of a Fake Agency:
- Lack of registration. The company has no official documents, licenses, or tax identification number.
- Advance payment. Clients are asked to pay the realtor's services in advance, but after receiving the money, the company stops communicating.
- Fake reviews. Such agencies' websites contain exclusively positive comments that are difficult to verify.
- Imposition of dubious services. Some pseudo-agencies sell access to a non-existent apartment database or require payment for "selecting options" that turn out to be unavailable.
- Inability to verify the deal. The client is not provided with documents for the apartment, delays occur, or they are offered to sign an agreement without the opportunity to study it.
Often, such firms close after a few months and then reopen under new names. This allows scammers to avoid responsibility.
Fraud in Apartment Sales
Real estate buyers also face fraud. Scammers use fake documents, front persons, and legal loopholes to illegally sell property.
Most Common Schemes:
- Fake power of attorney. The apartment is sold on behalf of the owner, but the power of attorney confirming their authority is fake.
- Apartment with encumbrance. The property may be mortgaged to a bank, involved in legal proceedings, or have utility debts.
- Deal without co-owners' consent. If the property belongs to several owners, but one of them sells it without the consent of the others, the deal may be declared invalid.
- Seller with fake documents. Sometimes scammers use stolen passports or fake IDs to conclude a contract.
To avoid risks, before buying an apartment, it is important to check the history of the property, request an extract from the Rosreestr, verify the seller's documents, and consult with lawyers.
How to Check a Realtor and Agency
To avoid becoming a victim of scammers, it is necessary to thoroughly check the realtor and real estate agency before signing a contract.
Recommendations for Verification:
- Clarify the agency's registration. Official companies have a tax identification number, registration number, and registration with the tax service.
- Check the realtor's license. In some regions, realtor activity requires certificates or membership in professional associations.
- Study the contract. Any service must be documented. The contract should be carefully read before signing.
- Request original documents. If the deal involves the sale of an apartment, it is necessary to verify the authenticity of the certificate of ownership.
- Look for reviews. Real client comments can help identify potential problems and understand how reliable the agency is.
Additionally, you can request information about the apartment from the Rosreestr to ensure there are no encumbrances or disputes.
Conclusion
Fraud in the real estate sector takes various forms: from rental and sales scams with fake documents to fake agency operations. Fraud can lead to significant financial losses, loss of property, or lengthy legal proceedings. To protect yourself, it is important to check realtors, agencies, and property before a deal, carefully study documents, and consult with lawyers.