How can you be cheated when buying a property?

History knows a lot of cases of selling objects at inflated prices, the loss of an agent along with money for buying, delaying construction for many years and many other incidents. We have studied and outlined the basic methods of deception that you may encounter in this article.

Types of risk

We are talking about such risks as the freezing of construction, under-construction of houses, serious delay in the delivery of the object when buying housing in the new building at the construction stage. Often, building companies cheat by executing documents wrong.

It is worth considering the general trends of the market: history knows many situations when buying apartments for the purpose of further resale at a higher price resulted in financial losses due to the crisis.

Is not excluded such a moment when a realtor can be an ordinary scam who has the habit of disappearing after receiving the buyer's money.

Pitfalls

In Europe, there is such a practice as licensing of realtors. The license is issued only after the potential realtor has passed a series of exams. In addition, such a document requires annual confirmation that can cost up to five thousand euros.

In a number of European Union countries, only licensed agents can purchase and sell real estate. In this case, the activity of realtors is clearly regulated and controlled by the state.

But the so-called "black" realtors who do not have a license, have a habit of using the trust and ignorance of foreign buyers and deceive them. Only one example - a Russian purchased an apartment in Spain, arranged with an agent for assistance in repairing housing, but the process did not manage to reach the middle, as the agent simply disappeared, taking the keys to the apartment with him and an advance for repair work...

Problem building companies/builders

In addition, that the deadlines are broken almost constantly and everywhere (the question is only for the duration of the breakdown), often after the contract is signed, the agent simply disappears. The buyer cannot find out what to do with an unscrupulous developer and how exactly he can file a claim.

Checking real estate developers and realtors before concluding a deal

You have to check the developer and realtor, who works with him before the conclusion of the transaction. You need to clarify a few points:

- does the developer have liability insurance;
- whether the developer has paid deposits in case of bankruptcy or unfinished construction;
- whether the principle of the deposit is in effect, which you must pay in the amount of twenty to thirty percent of the purchase amount, and the remaining money to pay when the object is delivered or in stages, as construction progresses.

Also, it is necessary to make sure of the reliability of the realtor or the company for which he works. You must look for information on the network.

How fair is the price of the object?

There is also such a way of the scam when the agent places objects on the network, intentionally overstating or understating the price while this issue is not even coordinated with the owner of the sold object. When a potential buyer is interested in an object, such a realtor states that the object is sold or trying to sell the object for a much higher price than the seller requires. Also, the price of the object can be much higher than what other real estate agencies ask for.

It is necessary to require an official mandate, which prescribes the price of the object, for which it is sold by the owner. If the price is too high, refuse further cooperation.

Caution! Discounts!

If the property is sold at a low price, it is worth finding out the reason for the discount. Even if you are told that the owner urgently needs money or he/she moves to another place, pay attention to his/her lawyer or notary for the presence of unpaid debts or other liabilities. Otherwise, you can buy a debt facility along with the obligation to pay off those debts. If it turns out that there are debts, agree in advance and write in the contract on whose shoulders this payment falls.

Also, you should pay attention to the state of housing, it would be better if the object gets examined by an independent specialist. It is possible that the housing condition is problematic or even emergency this is why the price was reduced so much.

Documentation

Choose a good and reliable lawyer and instruct him to study the documentation on the acquired object before concluding the transaction. Pay a high-quality translation of documents if you do not know the language in which they are compiled. Ask clarifying questions your lawyer on all moments that are not completely clear to you.

Checking the documentation is so important, otherwise, you may have serious problems with the registration of property rights.

Expenses "during the process"

Pay attention to how it is common to pay realtor interest in the country where you are going to buy real estate. A seller or the buyer needs to do this. Perhaps it is worth to hire someone who understands the structuring of transactions and taxation.

Technical condition and utilities

Pay special attention to the state of the object. So you do not have to invest any large investments in repairs. Clarify how much this dwelling will cost you in the future. Ask the sellers how much they pay for utilities and other services for the maintenance of the facility.

If you take all the above-mentioned nuances into account, then the risk of remaining deceived will definitely decrease. The main rule of successful purchase of such serious and expensive objects as real estate is always to be on the alert, check everything, and understand everything. The vigilant client will never become a victim of fraud.