6 TYPES OF REAL ESTATE FRAUDS IN KENYA
Real estate Fraud is a scenario whereby one person or party commits fraud in connection with the purchase, sale, rental, or financing of real estate property. There are various types of real estate fraud, some of which are exclusive to certain locales and others universal.Below are some of the most common real estate Frauds:
Theft by False Pretense
This is an offense whereby one defrauds another person out of money or property by using false promises and representations that don’t add up.
Title Fraud
This usually affects individual homeowners.
This involves fraudsters using stolen identities or forged documents to transfer a registered owner’s title to themselves or to someone else without the registered owner’s knowledge.
READ: How To Avoid Title Deed Fraud In Kenya
Rental Frauds
This is a situation whereby would-be tenants are tricked into paying an upfront fee to rent a property.
In reality, the property does not entirely exist, and maybe it has already been rented out or has been rented to multiple victims at the same time.
This always comes in many forms and can have far-reaching consequences for your financial future.
Fake rental advertisements are on the rise. In this scenario, the con artist or a group posts a false rental ad and asks a potential tenant for a deposit or lease payment.
Always be on the lookout for rental posts that seem suspiciously odd; don’t just fall for anything.
Wire Frauds
Any scam that takes place over interstate wires constitutes wire fraud.
Phishing scams, telemarketing fraud, and spam-type schemes all fall within this realm.
It includes any signals, signs, sounds, pictures, or writings transmitted via cable or wire, television, or radio in foreign or interstate commerce.
Particularly a scam where someone pretends to be your real estate agent by hacking into or copying their contact information and calling you to deposit good-faith money or an earnest deposit into a fake bank account.
The bait-and-switch fraud measure
This is a fraudulent practice of advertising a low-priced mansion or products and services that actually don’t exist or have already been sold.
It’s kind of a strategy for them to bait clients because they are desperate for money. And when they reach out to you, they sell you an alternative or offer you something that’s in totally poor condition at an exaggerated price.
Straw buyer schemes
A straw buyer is a person who purchases a home on behalf of another person.
The act is only considered illegal if the transaction is fraudulent or the goods are purchased for someone who is legally barred from making the purchase themselves.
The straw buyer is used because the real buyer is not in a position to complete the transaction for some reason. For instance, the real buyer may have bad credit.
Finally, the most important move to avoid Title deed fraud is working with an established Real Estate Company like Amcco Properties Limited where Genuine Title deeds are issued in 45 days at no extra cost.
