Buying a property or having to lend for money involves large financial commitment. Therefore, you should take necessary precautions when having these transactions. The following are some of the reminders to avoid fraudulent activities:
1. Be informed
You should know the current market value of a certain property. Ask for legal advice regarding the recent sale prices and review the sales history of the property. The more the sales is within a short period of time, the more it indicates inflated value.
2. Only provide confidential information to trusted firms and people
Be sure to check their license to operate and only get referrals from trusted banks, real estate companies, or mortgage professionals.
3. Be Honest
You should be honest when completing the loan application and in answering interviews even if others pressure you to do the opposite. If not, you are automatically committing fraud.
4. Inspect the property
This is the most basic thing to do when investing in property and real estate. You should first check the property if it really exists before proceeding to any other steps.
5. Read and understand the documents presented to you
You should carefully review every document that is presented to you before signing and closing the deal. There are times when some of the information are omitted or misrepresented. Do not sign if there are blanks or things that are written which you don’t agree originally and ask questions if there are things you don’t understand or you suspect the fees that belong to nonexistent third parties. Furthermore, do not allow someone to sign or complete the application on your behalf.
6. Request for copies of documents
Be sure to ask for duplicate copies to every document that is presented to you. Be suspicious of the lender who does not want or meet this requirement.
7. Confirm true ownership of the property
It is important that the transaction about selling and buying of property should be between the seller or the true owner, and the buyer. To confirm, ask for legal documents that will support the owner’s claim that he or she is in fact, the true owner of the property.
8. Validate or confirm presented documents
It is also necessary to validate presented documents. The title deed- for example, if it is named to the seller or if he or she has the right to sell the property. Additionally, you should ask for original copies of the documents and let a legal consultant examine the papers. Do not buy properties if the title is unclear, because it might lead to future inconvenience.
9. Enter into a detailed agreement
This is as much as important as anything else. Make sure that the agreement covers the payment terms and amenities fee. And it should be approved by both parties and is written for future references. If there are future violations of the agreement, it is necessary to perform legal actions. So before this happens, invest your time and effort to understand, as much as possible, everything.