How to avoid being conned by property brokers

While working hard to own land, many people have fallen prey to deceitful property dealers pretending to be property owners or brokers. 

In the process, would-be buyers have lost a lot of money, a vice that has left many devastated. 

Zabibu Kobusingye still recalls how she lost over sh2m through fraud to a fake property broker in Mutungo. 

She had saved up money and had decided to buy an already built house. 

To kick off her purchasing project, she was introduced to a one Masembe Umar, a land and house broker who showed her different pictures of houses for easy selection. 

“I would call him and he would send the pictures while I sent him money to look for better houses for me in the area, but we did not meet,” Kobusingye recalls.

She adds that after four months without visiting the houses yet she had been paying money, she demanded to meet Masembe at an agreed place and time, but he never showed up and his known numbers went off. 

Kobusingye asked her friend, who had linked her to Masembe, for the company he purported to be working for. 

When she got in touch with the said company, she was shocked to find out that Masembe last worked for the company many years earlier. It hit her that she had lost money to a conman.

Ronald Were, a marketing officer at Smart Deal Brokery Services advises would-be landowners to do their due diligence concerning a prospective land broker. 

It is even better to physically visit the company they claim to be working for before partnering with them. 

Once at the office, one has to ask for the person’s identity card and make a copy of it. 

If possible, take their photos as well. Find out everything you can about the company, whether they are registered and are tax compliant. 

Know the seller

It is very crucial to know the seller even if you are transacting real estate deals through lawyers or other people in any community. 

You must meet them in person and if one says it is not possible to meet with the buyer, then the agent or broker must tell you all the details of the seller with proof of address and copies of legal documents, names and location of the property. 

The buyer can look for the place and inquire about it through local leaders to avoid being conned.

Confirm that the property exists

When buying property, the buyer is advised to get all the relevant certified copies of documents like Certificate of Title or Certificate of Lease and in case of a Certificate of Lease, ask the agent or owner to give you the lease document. 

Neighbours to the place can also be of great help since most of them tend to know who owns which building or land in their locality and can easily notify the buyer about any disputes on a particular piece of land in their area and its history. 

It is important to search the land to find out if it was leased or has a caveat on it. Do not transfer any money until you are sure the land is not shrouded in controversy. 

Pricing

The buyer must use a qualified registered valuer from the lands ministry to establish the value of the property so that it helps one to negotiate the value of the desired place without the commission of the broker or agent who tends to hike the prices of different properties according to their location to get a higher commission.

Avoid cash payments

Ideally, one should pay a deposit before business is transacted fully. This deposit can be refunded if the buyer changes their mind. 

Were strongly advise buyers against paying brokers or agents directly and call for use of formal payment means like transacting through bank accounts to reduce the transfer risks and losses. 

This method is ideal in these transactions because it is easier to refund this money in case of a failed deal. Most conmen will insist on cash payments, especially with regards to the deposit. 

They do this to eliminate any paper trail in which one can obtain their details through banks, for instance, some are not even interested in the full purchase price. 

Payment by cheque or bank transfer is advisable because you can trace the person should the deal fail. 

A buyer can also seek legal address through a lawyer to draw up an agreement to deal with transfers to safeguard his or her interests in the property. 

Take your time

Conmen are shrewd. They use cunning language to convince the buyer how the property is going to be sold off if it is not paid for on time. 

However, Were says there is no reason for the buyer to be pressured into buying land. They should take their time so that they can make a sober and informed decision and not make one under duress.