What Causes Or Helps Frauds To Flourish In Real Estate Business



Fraud can be defined as “Wrongful or Criminal deception intended to result in financial or personal gain” Fraud is also a type of criminal action `explained  “As abuse of position or false representation or prejudicing someone’s right for personal gain”.

Fraud can be committed by individual or business. Frauds are not limited to Real Estate Business alone but also cut across all strata of businesses. Fraud is common in the buying and selling of property including Real Estate.

It is the duty of an intending property buyer to be careful in order to avoid being swindled.

Below are what causes or helps frauds to flourish in Real Estate Business.
GREED

Greed is one of the causes that helps fraud to flourish. If you do not control your greediness, you are likely to lose money in such transactions. If a property is N20 million in a particular area and you are offered N10 million, if you accept this offer without diligent search, this may lead to capital loss. LOADING OR TOPPING
Loading or topping of prices on properties is another factor that helps fraud to flourish in real estate. If for instance, the landlord instructs an Agent to sell property say for N10 million if the agent adds about N5 million to this, making a total  of N15 million, the action of the Agent has in a way contributed to fraud as the buyer is not aware that the price has been loaded with N5 million.

LACK OF KNOWLEDGE OR EXPERIENCE IN REAL ESTATE BUSINESS
If a practitioner in Real Estate Business does not possess adequate training in Real Estate Business, he is likely to make mistakes in finance and investment, this may contribute to fraud. This particular fraud happens among Co-operative Societies or half baked Agents who did not have formal training in Real Estate business but engages and practice  it.

NEGLIGENCE

Negligence on the part of Real Estate Practitioner may also contribute to the fraud in Real Estate Business. Negligence can occur in many forms like backdating of receipts, forging of documents and non filling of appropriate documents with relevant authorities. The act of negligence may be done intentionally or otherwise, whatever way it is done, it is likely to contribute to fraud in Real Estate Business.

IMPERSONATION

Impersonation is another factor that contributes to fraud in Real Estate Business. This usually occurs when a group of persons present themselves as Executives, Principal members of the family or letting agents and execute the contract illegally. Another way that impersonation may occur is to interchange the photographs and signatories in the original documents and affix them into the fake document for the purpose of carrying out the illegal transactions.