We cannot stress enough how challenging it is to buy a condo in Brampton. From finding the perfect condo for sale in Brampton within your budget to winning the deal with strategic negotiation, condo-buying is more challenging than you think. And the last thing you want in this demanding process is getting scammed.
However, fraudsters targeting housing consumers have become more common now than ever before. A study found that 1 out of every 20 homebuyers who bought or sold a home in the last three years have been victims of some type of real estate fraud.
So, if you’re planning to buy a condo in Brampton soon and don’t want to become prey to real estate scams, keep on reading this blog. Here, we’ll unveil the top scams condo buyers face and how you can avoid them.
Scams That Condo Buyers Often Run Into
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Phantom Listings
Imagine finding a dream condos for sale Brampton - perfect location, amazing amenities and all at a price that seems too good to be true. But buyers beware, this could be a phantom listing.
In a phantom listing, scammers create listings for condos that don’t actually exist or that are already sold. They often use stolen photos and descriptions from legitimate condo listings to make the fake listing seem authentic.
The scammers price these phantom listings at a price well below the market value, knowing this will attract eager buyers. Once you show interest, the scammer will pressure you to send money upfront for things such as application fees, security deposits, or even holding fees. Then, they will come up with excuses to avoid showing the condo in person citing different excuses.
How to Avoid the Scam:
Insist on seeing the condo for sale in Brampton before committing any money to it. If the seller of the condo keeps making excuses, walk away.
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Fake Agents
As you can guess from the title, some scammers pretend to be licensed real estate agents but they actually are not. They might show fake licenses or badges to you or create a fake real estate brokerage website.
The fake real estate agents recommend you condos saying it’s their listing to get your attention. They pressure you into paying upfront fees, deposits, or “holding costs” before you even see the condo in person. Once they have your money, they vanish, leaving you with nothing but an unreachable phone number and a shattered homeownership dream.
How to Avoid the Scam:
You must ask your friends, family, or colleagues for recommendations for the best real estate agents in Brampton if they know any. These people in your network can refer someone they have had a positive experience working with. Then, once you pick a Realtor to go ahead with, visit the Real Estate Council of Ontario (RECO) website to confirm their license status and disciplinary history.
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Title Fraud
Title fraud is when someone illegally steals the ownership rights to a condo for sale in Brampton. Property title fraudsters might -
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Forge documents - They create fake ownership deeds or other legal documents to make it seem like they own the condo.
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Impersonate the owner - They pretend to be the real owner and sell the condo to you or take out a loan against it.
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Exploit loopholes - They find weaknesses in the ownership records of a condo and use them to transfer ownership to themselves.
How to Avoid the Scam:
The best way to protect yourself from title fraud while buying a Brampton condo for sale is to hire a reliable lawyer or title company. These professionals will conduct a thorough title search to verify the condo’s ownership history and identify any potential problems. Apart from taking this step, if something feels off about the property or the seller, trust your gut and walk away.
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Foreclosure Scams
In this real estate scam, fraudsters target condo buyers by advertising cheap condos that are supposedly foreclosed properties. They claim that the foreclosure process is complicated and they can handle it for you for a fee. This will create a sense of urgency for the condo buyer and make them believe that their service is necessary to secure the condo.
The real estate scammers will often pressure you to pay the fee upfront before you can even see the condo or learn more about the details of the foreclosure. However, after you pay the fee and provide personal information, one of two things might happen -
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The fraudsters might simply disappear with your money and leave you hanging in the middle of buying the condo for sale in Brampton.
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In some cases, the fraudster might provide you with fake paperwork or lead you through a phoney foreclosure process that ultimately fails. You’ll end up losing your money and your personal information will be exposed.
How to Avoid the Scam:
You must never respond to unsolicited calls, emails, or mailers that promote heavily discounted foreclosures. In case you plan to go ahead with a foreclosure property, use public records and resources to verify the foreclosure status and ownership details. Also, never pay any upfront fees for a foreclosure deal; legitimate foreclosure professionals only ask for a payment after the sale.
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Bait-and-Switch Trap
An ad shows a Brampton condo for sale that seems too good to be true - an incredible price, amazing amenities, and a perfect location. Naturally, you’ll be hooked by this ad and will be eager to learn more about the condo.
But when you contact the seller (who might be the developer or a representative), you’re hit with a switch. They may tell you the advertised condo is either unavailable or its price has been hiked up.
However, they will offer you to show “similar” options in the nearby area. These alternative properties might lack the advertised features, may be in a less desirable location, or come with high extra fees for the amenities you were initially promised.
How to Avoid the Scam:
Don’t fall for the “too good to be true” condo deals in Brampton. Research the average price of condos for sale in your desired area in Brampton with similar features to stay on the safe side.
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Association Scam
In this scam, fraudsters pretend to be representatives from your new condo association to steal money from you. The scammer might call you and claim that some urgent fees or dues need to be paid immediately by condo owners.
They may request payment through unusual methods such as gift cards, money transfers, or prepaid cards. They may pressure you to act quickly and give you a seemingly believable reason as to why not to contact the condo association directly regarding the payment.
How to Avoid the Scam:
Verify the ways of communicating with the condo association through their official channels such as the website or management office. Do not pay any fees or dues to the association of the Brampton condo for sale through unusual methods. Legitimate condo associations will have established payment procedures.
An Expert Will Guide You to Steer Clear of These and Other Condo Scams
A Realtor can spot red flags in condo listings and guide you through the legal and financial aspects of condo-buying. However, keep in mind that you need to play it safe even when hiring a real estate agent while buying a condo for sale in Brampton. Make sure the Realtor you choose is licensed and associated with a reputable real estate brokerage.
Check the real estate professional’s credentials and read reviews or ask for references. This ensures that you are working with a Brampton Realtor who follows ethical practices and has your best interests in mind.