Real estate fraud is a crime based on deception during real estate transactions. This type of fraud can be carried out by individuals, organized groups or even unethical real estate agents. In essence, it involves deceiving a person interested in buying, selling or renting a property, using lies and persuasion tactics to obtain money from the victims.
Here are some practical tips to protect you from these scams when buying a property.
Tips to Stay Away from Scams
1. Preliminary Investigation
Before making any transaction, it is essential to thoroughly research the property. Make sure you know its history, as well as the history of the current and previous owners, and review the property’s documents.
2. Request Key Documents
It is essential to receive copies of the necessary documents for the transfer of the property. Some of the most important are:
- Certificate of Title: This document certifies that the seller is the legal owner of the property.
- Cadastral Plan of the Land: Includes measurements and geosatelital location of the lot. Verify that it is delimited.
- Certification of Liens and Encumbrances: Indicates that the property is free of debts, such as mortgages or liens.
- Property Tax Certification: Proves that the seller has paid all applicable taxes.
- Owner’s identification: Make sure that the seller presents valid identification documents.
3. Perform Due Diligence
Visit the corresponding institutions, such as the Real Estate Jurisdiction and the Registry of Titles, to obtain detailed information about the documents and the legal status of the property.
4. Evidence of Secure Payments
Make payments through a financial institution, such as a bank, to ensure the security of the transaction and avoid fraud.
5. Property Inspection
It is crucial to personally inspect the property to confirm that it meets specifications and has no hidden problems.
Techniques to Apply
- Verify the authenticity of the documents: Don’t just receive the documents; verify in the corresponding institutions that they are not altered.
- Request Certifications Directly: This will help you avoid manipulated documents.
- Check the Seller’s Credit Bureau: Be sure to check the Seller’s financial history.
- Direct Communication with the Owner: If you purchase through a power of attorney, contact the owner in a video call to confirm his or her identity.
- Personal Inspection or Through a Confidant: Make a visit to the property or ask someone you trust to do it for you.
- Avoid Cash Payment: Make payments to a bank account in the seller’s name or issue a certified check.
- Don’t Yield to Pressure: Perform each process at your own pace, avoiding pressure from vendors.
Remember, information is key to avoid fraud. Take the time to research and protect your investment when buying real estate.
