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Most Common Real Estate Frauds and Scams (2021)

Real Estate Scams Affect Thousands Of People Every Year

There are more than 15.000 Real Estate Cases every year in front of the Italian Courts. The scammers always use different methodologies for the victims who are usually people who have no experience in real estate sales, let alone if the language barrier were to be added. There are various scams, the most common are listed below.

The dream property at a very low price, when the reader of an ad contacts the advertiser the answer is always that the property is no longer available, but that there are others similar, and that it is possible to stop the negotiations through the payment of a deposit. Once the deposit is made, the scammer disappears.

The Paid List, the scammer pretends to be a real estate agent and sells more reliable and exclusive property listings than those found on the internet or in newspapers. Obviously, these are non-existent ads or no longer available for sale.

The fake real estate agent, the cases of scams of this type all share the same technique: the request for the payment of a large deposit to win a house for sale at an advantageous price.

The Rip Deal, in this case, the scammer contacts potential victims through the ads of privately published properties and presents himself as an international investor with great economic availability. At the first meeting, usually organized in exclusive places, no interest is shown with respect to the property, but easy earnings are proposed thanks to an exchange or a cash transaction. Euros are offered in exchange for Swiss Francs or vice versa (in rare cases US Dollars) with a commission that can reach up to 20%. The scam takes place with the delivery of cash which will prove to be false or made up of blackened banknotes (also false) that can be reused after treatment with special chemicals.

The millionaire buyer, the owner of a house for sale, is contacted by a person who claims to be a prominent and wealthy person willing to buy a property in Italy. To clear the bureaucratic issues, he asks for a small advance for the first tasks, while he deals with the international transfer of the total sum of money. Obviously, once the requested sum has been received, the scammer will no longer be reachable.

Assignment of the property and the mortgage, the scammer, acting as a real estate agent, chooses the victims among the people in difficulties with the mortgage payment. He, therefore, proposes to buy their house by letting them live on rent. The victims sign the transfer of the property and the mortgage. In this step, however, there is a clause that specifies that the transaction will take place only if the bank approves it. If the bank does not approve the victims, they not only lose their home but keep the mortgage pending.

These are some of the best-known cases of scams implemented in the real estate sector, for this reason in such a delicate operation it is always advisable to be advised by qualified and experienced professionals, a more than justified protection for the peace of mind of an expected transaction such as the realization of a dream that can become a nightmare.

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