Property transactions involve substantial amounts of money and sensitive personal information, sellers are encouraged to remain cautious throughout the process.
Morné Prinsloo, local agent for REMAX Town and Country Roodepoort and Krugersdorp, says one of my strongest recommendations is to verify banking details independently, particularly when dealing with deposits, conveyancing payments or the proceeds of a property sale.
"If you receive an unexpected email or WhatsApp message advising that an attorney's banking details have changed, do not make a payment based on that message alone. Contact the attorney using a telephone number you have independently verified," he says.
Prinsloo also recommends working with a properly registed property practitioner, conforming the identity of the professionals involved and being careful about sharing identity documents or financial information.
In his own approach, Prinsloo believes accurate communicatiomn and proper documentation are essential. "Important instruction should be recorded clearly, and unusual request should always be questioned. Sellers should never feel pressured into making urgent financial decisions without verification. Taking a few minutes to confirm an instruction can prevent a serious financial loss.
READ: Key red flags and scam warning signs to protect your investment
To avoid falling victim to property scams in South Africa, Paul Stevens, CEO of Just Property, offers the following tips:
1. Always use a reputable estate agent registered with the Property Practitioners Regulatory Authority. Using the PPRA’s website, you can search for an agent’s name to see if they are registered.
2. Conduct thorough research to verify the legitimacy of the property and the seller or landlord. Does the property exist on Google Maps? Is the landlord/seller willing to provide identification documentation to you for verification?
3. Insist on meeting with the agent at their office or the landlord/seller in person before viewing the property to ensure they are who they say they are.
4. Be cautious when providing personal or financial information online and use secure platforms for transactions.
5. Be wary of deals that seem too good to be true, as they are often signs of a scam. Is the rental incredibly low for the value you’d be receiving? Is the sales price far cheaper than the average for the area?
6. Never pay money upfront – legitimate agents and property developers will not require upfront payments other than to draw up your lease and complete your credit checks. If a landlord wants you to pay a deposit before seeing the property, walk away.
7. Consult legal professionals and bonafide property experts to ensure all documentation is legitimate and accurate. They have experience checking these kinds of documentation and have an eye for picking up any discrepancies.
8. Trust your instincts and walk away if something feels suspicious.
“If you’re a buyer, you can check the credentials of your agent by asking for their Fidelity Fund Certificate number and checking this with the Property Practitioners Regulatory Authority,” Stevens advises. "Then contact the Head Office of the property company they work for to confirm the agent and their branch is listed with them. Ideally, complete all paperwork in person at their office. Double-check with the relevant bank to ensure that your deposit is being paid into a trust account."
While conducting research through online portals is valuable for assessing market value and property availability, working through verified agents makes so much more sense. By following these precautions and consulting professionals, buyers, tenants, and landlords can reduce the risk of falling victim to residential property scams."
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