Fraud in the real estate industry has been growing recently with scam artists becoming more sophisticated and they have been not only been scamming buyers and sellers but also property practitioners.
In the most recent scam, fraudsters have stolen the identities of several legitimate agents in the RealNet group, and have been using these to try to scam prospective tenants and landlords in certain areas out of deposits and so-called administration fees.
RealNet group MD Gerhard Kotzé say they have gone to the police and also have forensic experts on these matters but he has also warned clients at this stage to please carefully check the credentials of anyone claiming to be a RealNet rental agent.
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“We are aware that the fraudsters have been active in Bloemfontein, Durban, Durbanville, Joburg and Rustenburg, but there may be other areas involved, and we are doing everything we can to protect our valued customers as well as our reputation. This is why we have decided to make this information public as soon as possible.”
He says the easiest way to do this is to ensure that the agent’s email address ends in realnet.co.za, and no other format. Clients are also welcome to check the name against the agent database on our website at https://www.realnet.co.za/agents/, or to call RealNet head office on 0860 460 460.”
Two other clues to the fact that a rental listing might not be legitimate, he says:
1. When the stated monthly rental is unusually low for the area.
2. When the property is not being advertised on well-known property websites or in the classified sections of well-known publications.
“Consumers who would like to establish whether an agent is indeed legitimate or not, are of course also always entitled to ask to see a valid and current fidelity fund certificate from the Property Practitioners Regulatory Authority.”
Kotzé notes that the agents whose identities have been stolen have opened cases with the SA Police Service, that bank accounts being used by scammers have been reported to the fraud division of the relevant banks and that various fake internet profiles have been blocked and removed.
“In addition, the RealNet group has retained the services of a private forensic investigator who has been successful in tracking the swindlers and is currently working with the SAPS case officer to effect arrests and ensure convictions.”