In the contemporary world, the real estate scams and property fraud have been increasing at all the levels day by day. They are becoming challenging to identify which one is true and which one is not true. When a prospect looks to be good and true, it is tough to find the right prospect. Hence, it is very imperative to choose the right property which you are willing to purchase and from the person whom you are buying. One of the best ways to avoid real estate scams and any property frauds is to hire a professional real estate lawyer to do a property title verification. However, there are few scams which can be avoided easily with common understanding.
Key ways to avoid Property-Related Scams
Title of Property Fraud is one of the disparaging types of property for estate owners. In this type of scam, the individual steals the individuality and uses fake documents to sell the property and land or to get a new home loan against the property. After getting the home loan, the fraudster takes off the funds and leaves the future payment burden on the estate owner.
The best protector for this type of land and property scam is to get the title insurance which will safeguards you from the encroachment errors as well as issues in the public records. Another solution to protecting this type of fraud is to use the protection of personal information. Moreover, Safety measures can also reduce mistakes.
Most of the people start their home hunt over the internet; this is the big profit for the property fraudsters. In this particular type of frauds, criminals pose as property developers and take the online rental listing and repost the identical on different another site on their names. Normally, they will offer the rents for less cost and they will charge the security deposit, apart from this they will also offer a fake rental document. This is too hazardous because the property buyer not only will lose the deposit expense but also lose their identity.
This is one of the common scams which is major in the real estate sector. In order to avoid this property fraud, the estate owner can search addresses of their units on search engines like Google image search, and they should also watermark the pictures they use in listings. They should add contact numbers too.
Foreclosure and home-equity fraud
In this fraud, criminal enterprises take advantage of house owners who are facing difficulties to pay their mortgage payments. In exchange for a less monthly payment and an amalgamation loan, the homeowner pays upfront fees and transfers the title of the property agreement to the new lender. Then the fraudster holds all the payment made by the house owner and sells the property and land without the knowledge of the estate owner.
When leveraging properties, there is always a risk factor. The owners looking ahead to borrowing on the equity should be alert for less meticulous lenders, for instance, those who invite property owners to adorn their document by increased income and property or land assessment value sources to secure huge loans.
While investing in property, do some general research on the property and land which you are going to buy like the owner name, previous transactions, title research of the land, mortgages and liens to avoid the property. It is always recommended that don’t share your documents with others and hire a professional property lawyer to protect yourself from property frauds or real-estate scams.