Avoiding Property Scams: A Cautionary Tale and Essential Tips

Avoiding Property Scams: A Cautionary Tale and Essential Tips

A recent and distressing scam that I read about on social media, which impacted a member of the I Love Fourways community, underscores the importance of vigilance and due diligence when engaging in property transactions. Unfortunately, scams are becoming increasingly difficult to detect, and it is often only by spreading awareness that future incidents can potentially be prevented.

The Scam:

A single parent, caring for her children, found a house listed for sale online on a reputable website. She contacted the property practitioner using the details on the site, arranged a physical viewing of the property, and was informed that a tenant would show her the house. Pleased with the property, she later met with the property practitioner, the conveyancer, and the purported owner, where they signed an offer to purchase. After making a significant cash deposit, she received regular updates about the change of ownership, which was supposed to take several weeks.

When the promised key handover date arrived, the conveyancers stopped answering their calls. She drove to the “office” where she had signed the paperwork, only to find it empty. Further investigation revealed that neither the property company nor the attorney firm/conveyancer existed, and the house was still occupied by its actual tenants.

Desperate for justice, she went to her bank and then to the police station to open a fraud case. Despite frequent follow-ups, she has yet to receive any updates on her case. It is unlikely that she will ever recover the funds. Even if she were to use a legitimate attorney or private investigator to track down the con artists, they will probably have spent the funds, and the only justice that may be possible is jail time for the culprits – if they are ever found.

What could/should she have done to avoid being scammed?

Verify, verify, verify. Firstly, the website she originally viewed the property on, secondly, the property practitioner, thirdly, the conveyancer/law firm, and fourthly, the trust bank account to which she paid the funds.

Verification of Websites and Emails:

• Carefully read the address/URL. Often, there is a full stop or one letter different to lead you to a different address that is illegitimate.

Verify the Property Practitioner:

• Use the Property Practitioners Regulatory Authority (PPRA) website where you can search for a property practitioner. Enter their name or registration number, and the results will display the registration status, registration number, and contact details if they are registered with the PPRA.

Verify the Law Firm and Property Practitioner:

• Similarly, the Legal Practice Council website shows the list of registered legal practitioners and legal firms. Contact the Legal Practice Council to confirm if the attorney is in good standing.

Verify Bank Details:

• Always verify the bank details for any payment you make. Use your bank's verification services on your banking website or app, or go to the bank or law firm in person to confirm the account details. Ensure you are communicating with the legitimate law firm by calling the number listed on their official website.

This cautionary tale highlights the importance of thorough verification processes to avoid falling victim to scams. If you ever find yourself in doubt, do not hesitate to seek professional legal advice from a registered attorney in good standing.

Stay vigilant and informed.