Be aware of real estate scams and criminals!
Category News
The real estate industry can be an exciting and rewarding profession for Property Practitioners, but it can also be risky, especially when working with large sums of money. While buyers, sellers, and tenants focus on starting a new chapter, opportunistic criminals are on high alert for any chance to take advantage of them. This is why implementing safety measures is crucial to protecting both Property Practitioners and their clients.
The importance of a vetting process
Before meeting new clients in person, Property Practitioners should have a vetting process in place to protect themselves and their clients from theft, fraud, and other opportunistic crimes. This may include requesting a copy of the client's ID and pre-approval certificate to confirm their identity and affordability.
Additionally, Property Practitioners should meet new clients at the office or a public place first, which is an opportunity to get to know their needs before showing them a home.
Best practices for in-person meetings
When meeting clients in person, Property Practitioners should schedule all appointments during daylight hours and avoid working late hours alone at the office. They should also avoid using "vacant" in property descriptions, which could attract opportunistic criminals.
In addition, Property Practitioners should establish a safety protocol with their clients and have an office code word for trouble. They should also share their daily schedule with family or colleagues so that someone knows where they are.
Precautions when showing a home
When showing a home, Property Practitioners should visit the area beforehand and be aware of any hazards. Beyond this, sellers should lock away valuables and personal items, such as letters or bank statements, to prevent theft. Property Practitioners should never allow access to the property without their presence. They should check the premises after any show to ensure no windows were jammed open or security features were tampered with.
Fraudulent Transactions
Fraudulent transactions in real estate can be devastating for both sellers and Property Practitioners. They need to be aware of the signs of potential fraud to protect themselves and their clients. These are some of the signs you should be on the lookout for.
- Watch for red flags: There are several red flags that may indicate a fraudulent transaction, such as an all-cash offer from an unknown buyer, the buyer insisting on a rushed closing or a buyer who is not willing to view the property in person.
- Verify information: Sellers and Property Practitioners should verify the information provided by the buyer, including their identity, employment status, and financial information. They can use third-party services, such as credit reporting agencies, to verify the buyer's credit history and income.
- Be cautious of wire transfers: Fraudulent buyers may insist on using wire transfers to pay for the property, which can be difficult to trace and recover if the transaction is fraudulent. Sellers and Property Practitioners should verify the authenticity of wire transfer instructions before sending any funds.
- Work with trusted professionals: Sellers and Property Practitioners should work with reputable professionals, such as real estate attorneys and title companies, to ensure that all documentation and transactions are legitimate.
- Educate yourself: Staying up-to-date with the latest fraud trends and scams in the real estate industry can help sellers and Property Practitioners identify potentially fraudulent transactions.
Day-to-day safety measures for Property Practitioners
Property Practitioners should install a safety app with a panic button. Apps such as iFearLess or SIGNL4 are some of the best on the market, offering a variety of industry professionals peace of mind while out and about.
Property Practitioners may also benefit from taking self-defence classes and carrying self-defence tools, such as pepper spray or a taser, in an emergency. They should take a first aid course and carry a kit in their cars. Additionally, knowing the location of the nearest medical centre and police station, especially when driving to new areas, is also essential. Finally, never neglect their intuition and trust their instincts while maintaining constant vigilance.
Self-Defence Classes: https://www.stormcombat.com/
Self-awareness and understanding that the real estate industry can be dangerous for Property Practitioners and their clients is paramount. Implementing safety measures can reduce the risk involved while maintaining that a defensive mindset is better to have and not need than need and not have.
By taking these safety measures, Property Practitioners can focus on providing their clients with the best possible service, knowing that they are protected from potential risks.
If you want to buy or sell your home, contact one of our Real Estate Property Practitioners by following the link: https://www.homesofdistinction.co.za/agents/
Homes of Distinction CC holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority.
Author: Bryce Anderson
