Beware of being scammed while dealing with commercial real estate agents in Toronto. The ratio of real estate scams is at the surge in this modern era. Criminals target the clients creatively. Here are the most reported scams listed below. Continue reading to get educated about the scams and the tips to prevent them.
1. Escrow deposit scam:
If you receive an email, text, or call from the representatives of an escrow company, and they instruct you to deposit your escrow amount. Remember that scammers create fake websites exactly similar to the lending company you are working with. In addition, they use many spoofing tactics to target consumers.
Following the instructions, you become the fraud victim. Then, scammers withdraw your funds, leaving you with only a few options to retrieve them.
To prevent this fraud: Before depositing escrow amount, call your lender to verify the escrow company. Never click on any links you received in texts or emails, and do not pay online without confirming wire instructions on a call with a live person from the lending company.
2. Out of country statement:
This is the most common fraud with many victims who trust easily. In this real estate fraud, the property owner claims they cannot make you visit the exact location you are about to buy because they are out of the country.
They convince you to sign the contract. They promise you to transfer ownership and keys via mail once you deposit the advance.
How to prevent from "I am out of the country" scam?
For safe and secure property buying, do not pay a single penny without inspecting the property. If the real estate agent says they are out of the country and not available to make you visit the place, avoid them.
If you belong to Toronto or its suburbs, you can search for Toronto mergers and acquisitions to find original dealers to avoid scams.
3. Personal details:
Some fraudsters usually call you and ask about buying or renting a property. In this way, they request your banking details and personal information. And their next step is to misuse your identity and rob cash directly from your bank account.
How to avoid these scams?
Always keep two things in mind. Firstly, don't trust anyone over the internet to provide them with your personal information or bank account information. Second, never give your credit card verification passcode to anyone on the internet.
4. Rental frauds:
Scammers mostly use social media for rental scams. First, they post rental property ads; they have no connection with. Then, they use fake accounts and post pictures from listings of any genuine rental company to make it look natural.
After it, they will ask for upfront fees or deposits to let you visit the property. Scammers have many ways to target clients. All you need is to stay alert and verify everything before taking the next step.
How to avoid rental scams: Do not trust anyone who asks for an upfront deposit of money to let you see a property. Always confirm that you are dealing with the actual owner of the property before discussing rental terms or visiting the property.
For confirmation, search the local property owner's website to find out the actual owner and his contact number. Furthermore, avoid online transactions. Instead, do everything face to face and make payment after signing the required documents. Use check instead of cash to have receipt of your payment.
All you need is to stay alert from ongoing scams. Don't give your personal information to anyone you meet online. Don't trust anyone to deposit funds before any verifications.
Stay alert of those scammers who make fake websites similar to the original business consulting firms in Toronto. Also, make sure to deposit payment via check after completion of paperwork. By following these instructions, you can save yourself from becoming the victim of real-estate fraud.