Steps To Take To Limit Frauds In Real Estate Business



According to Wikipedia, the Online Internet Dictionary, fraud is defined” As deception deliberately practiced to secure unfair or unlawful gain.” In legal term, fraud can be either civil or criminal.

Fraud can also be explained “As when trickery is used to gain dishonest advantage which is often financial over another person”.

The main words that are used to describe fraud are scam, con, swindle, extortion, sham, double cross, hoax, cheat, trick and so on.

As fraud is not limited to Real Estate Business alone but cuts across all spheres of businesses, it is the duty of Real estate practitioners to be careful when dealing with the clients.

Below are the steps to take to limit scam or fraud in Real Estate Business:

1    INDEPENDENT INVESTIGATION
Before you conclude or seal a contract on a property, do your own independent investigation or search on the property. This could be done within the environment, with the neigbours and also with those who had bought properties within the areas. Find out the history or origin of the property owners and what the reasons for the change of ownership are if the property is on the secondary market.

2    DO SELF EVALUATION
Embark on a thorough evaluation of the property you want to purchase. For example, if you realize that the property costs 100 million or more, but the vendors want you to pay between 70 and 80 millions, it is in your best interest to engage independent estate surveyors to value the property for you before you part with your money. You may also do search on similar properties within the area to have an idea about the range of prices.

3    DO A SEARCH ON THE DOCUMENT
Documentation is important in Real Estate. It is advisable that you do a thorough and comprehensive search on the documents with relevant authorities on the property. If you do this right, this step will reveal to you the extent of frauds in the property you intent to buy.

4    TAKING OF POSSESSION
Taking of possession of the land or the property is another vital step in limiting fraud in Real Estate. In the process of taking possession of the property this will reveal several problems about the property and the actions to take.

5    TIME DELAY
Time delay is another important tool one can use to detect fraud or scam in Real Estate. For instance, if a property is bought and you deliberately delay construction or development of the property, the problems associated with the property will surface by the time you embark on its development as the original owners may attempt to take possession simultaneously.

6    INVOLVE PROFESSIONALS
Involvement of various professionals in the purchase and development of the property from the initial stage to the roof stage  will reduce fraud to the barest minimum.

The various professionals like the Estate Agents, Estate Surveyors, Lawyers,  Architects and others with their experiences will detect any fraud or scam in the property in the course of their assignments.

7.    USING BANK FACILITIES FOR TRANSACTIONS
The usage of Bank facilities for transactions on the land or property will also reduce fraud to barest minimum. This is possible if you use cheque for the transactions, this will be documented for future references if need be.

In conclusion; the statement “Buyers Be Aware” that is applicable to all business transactions is equally applicable to Real Estate Business. Therefore take extra precautions when dealing with property matters.