Protect Yourself Against Real Estate Fraud

By
Real Estate Agent with Canadian Real Estate Online

Property scam artists may target both home buyers and sellers because property proceedings reveal very intimate financial information which are as valuable as gems in today's marketplace. Con artists are well practiced at gaining trust and softening rigid skepticism. Knowing some of the classical warning signs of a scam can assist you in avoiding the misery of some less than lawful real estate schemes.

 

In real estate transactions, the adage "you get what you pay for", is a very wise attitude to take to heart. Therefore if you are being offered a proposal that appears too good to be true, you should be instantly cautious and do not agree to anything without looking at a number of viewpoints from people and institutions that you trust prior to signing documents or issuing any money. Take on a business like way of thinking when asking for any credentials, documentation or sone kind of proof of claims from a person offering you a deal that sounds even slightly funny. 

 

The market worth of a home is one of the easiest aspects of a property to falsify, and an professional fraudster knows many tactics to artificially inflate the true worth of a deal and are always seeking an unsuspecting buyer. The procedure of reselling real estate without the owner's consent or knowledge can produce a chain reaction that eventually hurts lending institutions and personal credit scores. Early clever exploration can uncover unlawful lending practices just in time. You might be under the impression that you understand the worth of homes in the real estate market in Hamilton simply because you reside there however never take anything for granted.

 

A further common way to manipulate shady property transactions is by changing the name on the title, either to hide the real owner's identity or to disguise a co-owners' connection for various reasons, none of which are generally valid. Refinancing properties with incorrect titles can cause a number of troubles for unwitting victims of title fraud. What is worse is finding out that a conman has transferred your home into their name to sell themselves. Although you might be a professional agent specializing in real estate in Brampton you need to never assume that the individual you are speaking with is the rightful home owner.

 

Any real estate deal inevitably involves divulging personal, private financial information to another party that can be snatched, and skilled fraudsters can do a lot of damage to your credit very quickly. Whenever you are involved in a real estate transaction -- shady or not -- keep a close watch on credit card transactions, bank accounts and credit history and promptly report any unauthorized activity. All important records, access codes, financial information and passwords should be kept in a protected area and only released to people who have proven who they are. It has happened in the past where Toronto condominium listings have been targeted by fraudsters because this personal information has been unprotected.

 

With the explosion of the Internet in real estate transactions, connections with foreign investors looking into purchasing real estate in other countries has become a common tactic of fraudsters. Naturally, any such offer needs to be examined rigorously before contemplating it is earnest. The  expectation and monetary pull of such deals leads many investors who are will to take risks down a path of financial disaster.

 

The bane of many scammers is the legal protection offered by a good title insurance company. In order to assure you do not fall prey to this, consult with insurance firms and and a lawyer early in the process. If you are getting ready to sell your home it is suggested that you obtain title insurance early on, or if you're making arrangements to buy a new home proper coverage needs to be one of your first moves.

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Stefan Hyross

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