Real estate fraud is a crime based on deception during property transactions. This type of fraud can be carried out by individuals, organized groups or even unethical real estate agents. Essentially, it involves deceiving someone interested in buying, selling or renting a property, using lies and persuasion tactics to get money from the victims.
Below are some practical tips to protect yourself from these scams when buying property.
Tips to Steer Clear of Scams
1. Do Your Research First
Before making any transaction, it's essential to research the property thoroughly. Make sure you know its history, as well as that of the current and previous owners, and review the property's documents.
2. Request Key Documents
It's essential to receive copies of the documents required to transfer the property. Some of the most important are:
- Title Certificate (Certificado de Título): This document proves that the seller is the legal owner of the property.
- Cadastral Survey of the Land (Plano Catastral): Includes the lot's measurements and satellite-based location. Make sure the boundaries have been officially surveyed and recorded (deslindado).
- Certificate of Liens and Encumbrances (Certificación de Carga y Gravamen): Shows that the property is free of debts, such as mortgages or seizures.
- Real Estate Property Tax Certificate (Certificación de Impuesto al Patrimonio Inmobiliario): Proves that the seller has paid all applicable taxes.
- Owner Identification: Make sure the seller presents valid identity documents.
3. Do Your Due Diligence
Visit the relevant institutions, such as the Jurisdicción Inmobiliaria (Real Estate Jurisdiction) and the Registro de Títulos (Title Registry), to get detailed information about the documents and the property's legal status.
4. Proof of Secure Payments
Make payments through a financial institution, such as a bank, to keep the transaction secure and prevent fraud.
5. Property Inspection
It's crucial to inspect the property in person to confirm that it meets the specifications and has no hidden problems.
Techniques to Apply
- Verify the Documents Are Authentic: Don't just accept the documents; check with the relevant institutions that they haven't been altered.
- Request Certificates Directly: This will help you avoid tampered documents.
- Check the Seller's Credit Report: Be sure to review their financial history.
- Communicate Directly with the Owner: If you're buying through a power of attorney, contact the owner on a video call to confirm their identity.
- Inspect in Person or Through Someone You Trust: Visit the property or ask someone you trust to do it for you.
- Avoid Paying in Cash: Make payments to a bank account in the seller's name or issue a certified check.
- Don't Give In to Pressure: Go through each step at your own pace, without letting sellers pressure you.
Remember, information is key to avoiding fraud. Take the time you need to research and protect your investment when buying property.
