8 Scams When Buying and Selling Condo
8 Scams To Watch Out When Buying and Selling Condo in 2018
Real estate is not safe from crime stories. The market has unscrupulous players and fake materials. Each transaction is a legally-binding matter from the beginning to the end. Scams when buying and selling condo are crime. To save yourself and keep other people from loss, you must watch out for these eight scams when buying and selling a condo in 2018.
1. Fake Brokers
They are people who act as buying, listing
and selling agents. However, they don’t have the license to operate. They didn’t undergo training and don’t have enough educational background to get a license. They rely on fake advertisements online and personal approach to scams when buying and selling condo.
2. Double Sale
It may be a case of neglect. The initial buyer of the property forgets to register and transfer the title. Double sale of a condo can also be the fault of a seller. The person accepts the sale of the property at a higher price even if an initial buyer already gave their payment
3. Fake Property Titles
Some sellers use pre-existing or old titles to make a new one. The scammer shows supporting documents so the buyer won’t withdraw from the deal. A scammer can also use a fake title on real properties. It doesn’t matter if someone owns the condo or not. Exercising due negligence is one way to avoid the scams when buying and selling condo.
4. Transfer of Existing Loan Balance
A property owner receives an official notice on the transfer of his or her loan balance to a different lender. Other than the change in the lender, the letter also shows a different account name carrying the loan balance. The abrupt transfer would be a form of a loan scam especially if there were no requests for changing the loan structure.
5. Questionable Buyer Intentions
Some people inquire about properties like the condo near ortigas. They pretend to show interest in buying the property. They issue bouncing checks without the knowledge of the property owner. Worse, they use the identity of property owners and real estate agents to gain the trust of unsuspecting victims of scams when buying and selling condo.
6. Fake Online Rentals
The post has complete details about the apartment or condo unit. It has a contact person managing the property. The person asks interested tenants or buyers to deposit the initial payment to their bank account without meeting them in person. Afterward, the contact person becomes out of reach. Most victims of the scheme are Overseas Filipino Workers (OFWs).
7. Agent Negligence and Acts of Fraud
A licensed real estate agent may advertise a property managed by a different agent. They will offer the property at a low price to attract the market. Once it baits people, the agent sadly informs the interested party it’s sold out or unavailable. Then, he or she offers a different property from their listing. The new unit has a higher price than previous and helps them gain commissions.
Another tactic in selling is taking advantage of their skills in building rapport. Some agents forget to disclose essential details about the property which results in misrepresentation. Others entirely skip the part of sharing the pros and cons of buying or investing in the unit to disclose a sale. It prevents the client from making an informed decision during the buying process. It also conceals the real value of the property.
Last but not the least, agents work together to earn high commission fees. These realtors are often from the same agency. One represents the seller while the other acts as the buying agent. The homeowner and the potential buyer have no idea of the setup. The scam distorts the value of the condo while both agents violate the Code of Ethics and Responsibilities for Real Estate Service Practitioners.
8. Developments On-Hold
Some developers take years before they finish a project. Lesser-known developers with an on-going reservation can be a risky investment. These low-time developers may ask for reservation fees in the early stages of construction. Others ask amortization fees on advertised amenities and facilities. These additional features can be pending constructions or entirely abandoned by the developer. Some companies refuse to return the money even if they are at fault.
The scam also involves postponing developments past the turnover date. They promise their buyers a specified period. They move the date several times until clients lose their patience and back out.
Work with accredited and certified realtors to avoid scams when buying and selling condo. They help prevent any association with scammers. As a buyer or a seller, you must exercise due diligence. Run a background check on the people you work with during transactions. It’s always better to be safe than sorry