JOHANNESBURG – Fraud occurs in many industries across the world and unfortunately Real Estate is no exception.
Besides rental scams and other illicit activities, agents and sellers occasionally fall victim to “fake buyers”. These scammers make cash offers on properties they know they can’t buy and then disappear without a trace in most cases.
Gerhard van der Linde, Seeff’s MD in Pretoria East, says there are probably some fake buyers who believe that the money for their transaction will somehow magically appear before they are found out, but this wishful thinking of course.
In many instances of “fake buying” however, buyers know full well from the onset that they don’t have the financial means to make a cash offer, nor will they be able to raise the funds to conclude the deal, but this does not stop them of making a cash offer.
“We often see this with regard to buyers who are reluctant to disclose where the money for the transaction is coming from. When the time comes for the money to be transferred to the attorneys, the “buyer” then discloses that the money is coming from abroad," said Van der Linde.