Personal area 
*5401
Property Purpose
Each real estate property is defined by the main use that can be made of it. For example, a property can be designated for residential, business purposes or agriculture. This means that in a property designated for business, you can open a shop or office, but you cannot live in it like you live in an apartment in a residential building.
Naturally, the more expensive properties are properties that are designated for residential use. Therefore, a possible fraud in this context is the sale of a property that is designated for another purpose, as if it were designated for residential use. If the fraud is successful, the seller will earn much more on his property than it is really worth, and the buyer will be left with a property that cannot be rented for residential use. A simple way to avoid such fraud is to check the property’s taboo wording, which indicates the property’s purpose.
Multiple transactions
Such fraud occurs when the same apartment is sold more than once to different investors. Resale of the same property can occur both in second-hand apartments, and in apartments “on paper” that have not yet been built. For example, a real estate investment company offers investors to purchase an apartment that has not yet been built. Thanks to the tempting offer and the low price, a large number of interested parties purchase the apartment. The company’s owners receive the money from a large number of buyers, and disappear.
Impersonation
In this type of fraud, a person sells an apartment that he does not own. That is, a person presents himself as the owner of the apartment, meets potential buyers and signs a contract with them, even though he has no rights to the property. In a significant number of cases, such fraud is committed by someone who rents an apartment from an elderly person or an investor who is not in the country. The tenant, who has access to the property, presents himself as the owner of the apartment and falsifies the taboo wording and other documents required to sign a sales contract.
If you fall victim to this type of fraud as a buyer, you will lose the money you paid for the apartment without registering as the owner. On the other hand, as an owner Property, you may find out that someone sold your apartment
How to avoid real estate scams?
Real estate scams are all around us and it is important to not only be aware of them, but also to learn what you can do to protect yourself from them.
Consult professionals
One of the most effective ways to avoid real estate scams is to use the help of professionals who are experts in the field. They know exactly what preliminary checks to perform (such as checking the taboo wording) to reduce the chance of being scammed. Such professionals include real estate investment experts, brokers, and lawyers who deal with real estate.
Do not sign a memorandum of understanding
Contrary to the friendly name “memorandum of understanding” – it is important to understand that this is a binding legal document whose validity is the same as a contract. It is not always clear what you are agreeing to in the memorandum of understanding, and this document may come back to haunt you in the future. Therefore, the recommendation is not to sign anything, not even a memorandum of understanding, without the presence of your lawyer.
Don’t let anyone pressure you
If the sellers are pressuring you to close quickly – this could be suspicious behavior that signals you to be wary of this deal. Do not agree and do not sign anything out of pressure to “miss out on the deal of a lifetime”, this is a recipe for falling victim to fraud.
A deal that sounds too good
If you are offered a property at a price that is too good to be true, or other terms of the deal seem unusually generous to you – this could be a warning sign that something is wrong with this deal. Take your time, check things out thoroughly and consult with professionals before making any decisions.
Physically visit the apartment
If the apartment has already been built, don’t rely on what you were told or on pictures sent to you – physically visit the apartment and check it out for yourself, preferably more than once.
Contact the building committee
If it’s an apartment in a building, talking to the building committee can be very helpful. First of all, the committee (or other neighbors) can tell you about the building and if there are any significant problems. Beyond that, it’s a great way to hear about the owner of the property, find out if he really lives in the apartment, and more.
Check the seller
If the seller is a private individual, you can check that the name and details on his ID match the registration in the Taboo draft. In addition, you can search for the seller’s name on Google and on social networks like Facebook to make sure that it’s a real person.
Check the property you own
It is important to remember that real estate fraud may occur not only when you are interested in purchasing a property, but also when you own an investment property. Therefore, if you have a rental property – it is important to visit it once in a while. If you are abroad or have difficulty getting there, ask your neighbors to keep an eye on it or send someone on your behalf to check the condition of the property. In addition, it is recommended to check your rights in the land registry every now and then to make sure that you are still registered as the owner.
Write a warning note
A warning note can be useful to you both if you are looking for an opportunity to purchase a property for investment, and also if you are a property owner who wants to deter potential fraudsters. If you have purchased a property – it is very important that the lawyer writes a warning note for you in the land registry. This is a bureaucratic procedure that, at the end, your details appear in the land registry as the purchasers so that anyone who checks the property registration will see that there is an existing transaction for its sale.
On the other hand, if you are the owner of a property, you have the right to register a warning note stating that any change in the property ownership registration will require the presence of a lawyer on your behalf. Such a note may be enough to make someone who wants to use your property for fraudulent purposes think twice about the matter.