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Real estate rental market is the easiest source of profits for unscrupulous brokers. In search of housing, people who are not aware of the risk and choose cheaper mediation services, turn to dishonest companies and brokers, whose aim is to lure money, not find a home that meets the requirements, believes Mr. DZINTARS BĒRZIŅŠ, Head of the Rental Department of “ARCO REAL ESTATE”.
In the real estate market there are many different ways of deception, which are day by day still successfully used by intermediaries who wish to earn quick profit. One of the most frequently used methods is an offer which is prepared by a one-room or one-person business and the main feature of which is the concept of pre-payment. Namely, when turning to such intermediary, the client who wants to find an apartment, at first have to pay a certain sum of money, and, at the time of payment of this amount, a cooperation agreement between the company and the customer is signed, for form’ s sake. Once the mediator receives the coveted money the customer is given a list of apartments "available" for rent.
Such apparently legal transactions are fraudulent because the apartments included in the list received by the client are either not offered for rent at all or the contact person specified in the list can not be reached. When turning to the intermediary company once again, the client is told that the apartments have already been rented out and there is given a new list of other practically unavailable apartments.
In line with the development of the Internet and using the opportunities it presents, fraudsters have invented a new scheme how to address seekers of a new residence: an advantageous rental apartment offer is placed in an ad portal together with an inactive phone number and proposal to communicate via e-mail. In the case if a person shows any interest in the property, the fake owner states in his response letter that he is a non-resident and that he currently is staying outside the country. The response letter contains also a proposed solution: courier will deliver the apartment key to the client after the transfer of a deposit to an account of "Skrill" ("Money Bookers"). For better motivation it is added that if the apartment does not meet the requirements of the client, then the pre-payment amount will be returned.
Fraud and misleading practices are not limited to such a scheme, since cases when little-known real estate companies and dishonest brokers are engaged in plagiarism and copyright infringement, publishing, without permission, photos belonging to other companies, have. Such brokers are using an unusual approach to attract customers: they make copies of photos of a well-known company cutting off the symbol of the ownership – the logo; the photos are posted on the announcement portals, in addition, at a particularly attractive and low price that entices potential customers. When a call is received from a person who wants to hire an apartment, this person gets an answer that the apartment is already rented out, and that this person can find other equivalent apartments in the list of apartments offered for rent. It also happens that during a phone conversation it is promised to call back the customer. In between the calls the broker of the unfair company is trying to negotiate about cooperation with the brokerage company really representing the property, thus trying to obtain remuneration by fraud.
Especially impudent are amateur brokers, who copy photos of a well-known company retaining the logo of this company in order to create the desirable image and prestige. Publication of such photos creates confusion among interested persons as to why the company's advertisements, as evidenced by the identical pictures and the company logo, include so radically different transaction amounts; in the result of this in most cases it is decided to contact the person who has published the lowest offer.
There is more and more feedback from customers, who are dissatisfied with acts of persons who are hiring out properties, but who are not entitled to sign the rental agreements; the victim of such deception is the tenant, who must vacate the residential space. Mr. DZ. BĒRZIŅŠ stresses that the keys of the apartment still are not evidence of ownership; therefore, you must verify before the transaction that the contractor has the signatory right.
Full and comprehensive information on the property owners and the real estate encumbrances against a nominal fee can be obtained on the Land Registry website - www.zemesgramata.lv. But in the case if the lessor is an authorized person, Mr. DZ. BĒRZIŅŠ recommends to check the existence of the original power of attorney and its content at a notary. Also, the expert indicates that in the case of entering into a tenancy agreement with a high-class company, all the documents proving ownership rights as well as the powers of attorney are thoroughly checked.
06.11.2013.