If your company is in the market for a new office, you need to be extremely vigilant in watching out for sham properties. Unfortunately, frauds and scams are still as prevalent as ever in the real estate industry. Some of these schemes have become so advanced that it’s hard to even tell you’re being conned. Use some of these tips for handling and weeding out all of the bogus commercial property deals out there.
Your Guide to Combatting Commercial Property Scams
Red Flags to Look Out For
While it’s true that cons peddling these fraudulent units have improved their methods, there are still some low-level scammers just looking for a quick buck with no idea what they’re doing.
These people tend to use tactics that can be easily-attributed to fraud. Here are some giveaways that you can easily sniff out:
- No one is able to meet with you in person. If a seller isn’t willing to put a face to their business, there’s probably a reason why.
- They only receive funds through a wire transfer. When a seller solely accepts payment through wire transfer, there’s a good chance they aren’t the real seller or landlord. Most real estate deals happen in-person.
- They request money up-front or too early on. There’s usually a lengthy showing and courting process in any real estate deal. If it seems like it’s a little soon to send money, then you may want to reconsider moving forward with the transaction.
- The property you’re shown is different from the one advertised online. If you decide to see a property that you found online, you are expecting to see that specific property. When a seller engages in false advertisement, there’s a good chance there’s some deceit going on.
- Do your research! Everything is on the internet nowadays. Head to Google and you can access just about anything. Don’t be afraid to take advantage of this invaluable resource. Often, you can just look up the facts about the seller, property or lack thereof. With a little bit of homework, you should be able to determine if the property is legit.
One last thing: if a commercial property seems a little too good to be true, it probably is. Scammers tend to list properties under the market average just to trick some consumers into thinking they’re getting a good deal. Just think, if that unit was such an incredible value, it probably wouldn’t still be on the market.
Financial Traps
Occasionally, buying or renting a commercial property may come along with a whole set of fraudulent money schemes.
For instance, forged documents are one of the most widely-practiced real estate scams. You may sign off on a money exchange or provide your personal information on an illegitimate document.
Make sure that anything you sign or approve of is first reviewed by a lawyer. They’ll be able to detect any inconsistencies.
If a seller tells you that they’ll work on your behalf in obtaining a loan to help facilitate your purchase, they’re probably running a scam. When an individual is unqualified for a loan, there’s a reason for it.
Usually, when a seller is aggressive in securing your loan, they’re just trying to land your business and help afford their mortgage. Always handle your own finances.
A fraudulent deal may end up drowning your company if you aren’t careful. Using this advice, go on your way in looking for a lawfully and financially-sound commercial property.
