Apartment fraud: how to avoid falling for it?

Now swindlers are coming up with more and more new criminal schemes and fraud with apartments on the secondary market is becoming more sophisticated. Often, the price of apartments can increase several times simply at the request of people trying to deceive ordinary citizens. What tricks do attackers use and is there any way to protect yourself? You will find answers to these questions in our article.

Types of apartment fraud

Sellers, buyers and landlords use various schemes to obtain other people's money. These types of crimes occur mostly in large cities of Russia (Moscow, Smolensk, Chelyabinsk, Sochi) not only offline, but also online via the Internet . Let's look at the most common ones.

Seller scams

Apartment sellers use various methods to fool consumers. Let's look at the most popular ones.

Loan

Represents the issuance of a loan with the right to use property. It is a bit like buying an apartment with a mortgage, only the latter is officially formalized and entered into the register.

If he needs money, the client does not take out a loan from a bank, but turns to dubious organizations or individuals for help. To confirm his responsibility, a person allows scammers to use his apartment by proxy. Housing can be taken away at any time . But even if the client pays off the entire loan, the power of attorney may not be returned to him.

Deposit

Payment of an advance is a standard procedure confirming the parties’ decision to complete a transaction. An unscrupulous seller can enter into a preliminary agreement with several buyers, take a deposit from them and deliberately delay the paperwork. When this period has expired, the seller may not give the deposit.

By general power of attorney

“Thanks to” powers of attorney, scammers have developed:

• manipulations with papers received from incapacitated or already deceased citizens;
• forged or revoked powers of attorney.

When discussing the nuances of the sale, it is advisable for the buyer to personally meet and communicate with the owner. This will help:

• assess the owner of the property, the degree of his incapacity (if he is a single pensioner or a person with addiction);
• eliminate the risk of receiving a power of attorney from a dead person.

Buyer scams

There are two types of fraud by apartment buyers: fraud with a deposit or planting a “doll”.

Deposit

A deposit is a security payment that is not returned to the potential buyer in case of refusal to purchase an apartment, and sometimes can be paid in double amount. To return their money, the buyer can use the following schemes:

• demand from the seller the payment of a double deposit or a reduction in the cost of the apartment due to a violation of the deadline for collecting the necessary papers for drawing up an agreement;
• attract a second buyer to beat the deposit of the first and begin to demand double compensation from the seller for his money. If the seller refuses, they begin to blackmail him with a double sale;
• play with terms: the deposit suddenly becomes collateral, which the seller is obliged to compensate to the buyer.

"Doll"

Represents the use of counterfeit money. To avoid this trick, it is better to resort to non-cash payment. If the transaction takes place through a safe deposit box, it will not be superfluous to recalculate the amount received and check the banknotes at the banking institution.

Rental scams

We offer a description of common types of fraud when renting out an apartment.

Information fraud

Internet scammers were very popular a few years ago. They posted a list on the Internet with apartments for rent at low prices. When a potential client called the contact number to inquire about renting a specific property, he was told that this offer was no longer relevant and was offered several alternatives.

To obtain detailed information, the client needs to come to the office and pay only 180-250 rubles for it. As a result, the person received a form from a rental advertisement from a year ago.

Carousel

Represents the simultaneous execution of several agreements for the rental of an apartment. Fraudsters offer several clients to rent a good apartment in a good area for a short period of time at a low price.

To inspect the apartment, scammers bring each client at a strictly specified time so that he does not interfere with others. Sometimes attackers can “accidentally” bring two clients together in an apartment, which creates a little competition.

The swindler tells each client that he has taken a closer look at him. To confirm the intention to rent an apartment, he asks the person to leave a large part of the monthly rent as a deposit. Lease documents are signed in confusion. The person is asked to move into the apartment in a week so that the owner has time to prepare everything. They may even issue keys to confirm the transaction.

After the specified period, all clients and its owner will gather near the apartment and only then will they realize that they have been deceived.

Fraud schemes on Avito, OLX

Fraudsters are actively distributing advertisements for apartments for rent on various websites, but most often such notices can be found on Avito.

It is possible to detect fraud when renting out an apartment based on the following aspects:

• To demonstrate apartments, attackers use someone else’s home with a designer interior or ordinary pictures from the Internet. The main thing is that the image is colorful enough to attract a potential client;
• the price is too low. Helps to interest more consumers;
• incorrect ratio of price/quality concepts. The consumer should be attracted by the low price for housing with expensive repairs.

To expose the scammer, try to find out from him as much as possible about the property being rented out. Most attackers find it difficult to answer the following questions:

• time of the last repair work;
• what is visible from the windows of different rooms;
• which is located next to the housing.

The real owner will respond easily and quickly and may provide additional information. A person trying to pull off an apartment rental scam will answer hesitantly, pause, etc. To further verify the scammer, you can talk to him, and then repeat the questions asked at the beginning and compare the answers.

Some unscrupulous employees of real estate agencies take advantage of the ignorance of ordinary citizens and impose on them additional services that are in fact unnecessary. As a result, the client pays a large amount for renting the apartment.

Where to go for help in case of fraud?

If you have become a victim of fraudulent actions by agency employees, you must urgently draw up and send a notice to this organization with a request to terminate the agreement for the provision of services. You can send a registered letter with notification of receipt and a list of attached documents, or visit the organization’s office in person.

The application itself must contain your request to return the money paid. You can refer to inadequate notice of the service provided and to Articles 10.12 of the Law “On Protection of Consumer Rights”.

If your request is rejected, you have the right to complain to Rospotrebnadzor or immediately file a claim in court. The same must be done in case of fraud when selling or buying an apartment. As a rule, the law takes the side of the victim, and the fraudster undertakes to return the money.

How to protect yourself from scammers?

In order not to lose money and an apartment, you should follow a few simple but useful recommendations. They will help protect against fraud when renting an apartment, on the part of the buyer and on the part of the seller:

1. The contract should indicate only the actual cost of housing.
2. Before signing the contract, you need to obtain an extract from the Unified State Register.
3. The guardianship authorities need to check the legal capacity of the home seller.
4. At the psychoneurological dispensary you need to find out whether the seller or buyer is registered with them.
5. Check information about marital status, presence of children and documents authorizing the sale of real estate.
6. Check the fact of purchasing an apartment using maternity capital.
7. Check the power of attorney for authenticity and validity.
8. Personally meet with the property owner.
9. Check all persons registered in the property being sold.
10. Pay attention to the timing of inheritance.
11. Check the systematic payment for utility services, Internet, etc., find out about the presence of debt.

If any difficulties arise, it is recommended to contact lawyers specializing in real estate.