We live in an age where we have passwords for everything.  Security and anti-fraud measures are a way of life and everyone has a tale to tell of a hilariously unbelievable scam email they have received at one time or another… I guess we’re still waiting for that 500million to wired into our accounts? 

However, many people are not aware that fraudsters are even trying their hand at real estate transactions and now more than ever you have to be super vigilant when it comes to buying and selling property - so you do not become a victim of real estate fraud.

“It is frightening that this is now a part of our industry but that is the reality we are facing.  As a real estate agent, it is my job to ensure my clients are protected as much as possible from this kind of fraudulent activity and we are constantly double checking everything to make sure it is above board” said Hannah Schuhmann, Principal of HS Brisbane Property.

Authorities are warning real estate and settlement agents to be on high alert following reported real estate fraud in the ACT recently.  An interstate Commissioner for Consumer Protection has issued a warning that she believes the criminals responsible for that particular act could strike again.

“Everyone in the property industry, particularly those involved in property management and sales, should have a heightened state of awareness about these fraud attempts. They need to be in a position to detect them soon after initial contact is made and certainly before any documents are sent,” Commissioner Anne Driscoll said.

“Agents need to ensure that they have owner identification processes in place and that all of their staff are properly trained and instructed in what to do when a request to change contact details are made, especially if the owner is based overseas” she aid.

Criminals involved in real estate fraud are brazen and with the windfall for a successful fraud being quite substantial, we are likely to only see more of these attempts in the future.

At HS Brisbane Property, we have had first hand dealings with an attempt at a fraudulent transaction which we identified and took the correct steps to stop. 

“It’s happening and it’s happening right here in Brisbane.  If you are buying or selling a property, particularly where the other party is located internationally it is vital that you work with an Agent that you can trust” said Hannah Schuhmann.

The Property Observer recently released a checklist of tips to follow to assist in protecting yourself from potential real estate fraudsters:

• Regularly check that your property manager/real estate agent has your current and correct contact details on file
• Set up a password or secret question that will confirm your identity when dealing with your property manager/agent
• Provide copies of your ‘identification’ details when engaging your property manager, so agents are able to compare your details with fraudulent documents that may be presented later
• Be proactive and ask your property manager/real estate agent/conveyancer how they intend to identify the true owner of the land title they are selling or dealing with. Ask them: do they complete a 100-point check? Do they comply with Landgate’s Verification of Identity Practice?
• Ensure that your property manager/agent has a process in place to verify any requests to change your contact details by sending notifications to both the old and new addresses, both physical and electronic
• Ensure that your property manager/agent has your correct signature on file and that they check signed documents to confirm they match
• Protect your personal information and prevent identity theft by using secured mailboxes for mail deliveries and shredding or burning letters before disposing of them
• Be wary of giving your personal and/or financial information to third parties, either by phone or email
• Regularly change passwords to your email and banking accounts
• Never click on any links contained in emails from unknown sources
• Install anti-virus/anti-malware software on your computer and keep it up to date
• Owner(s) can place a Caveat (Improper Dealings) on their property through Landgate, which means the owner(s) must personally attend Landgate’s Midland office and pass an identity check , before that caveat may be removed, which reduces the risk of the title changing hands without the owner(s) knowledge
• Consider subscribing to Landgate’s TitleWatch service, which will alert you if an Electronic Advice of Sale (EAS) is lodged, or documents are lodged, against your Certificate of Title.
• If you are going overseas and selling your property, consider appointing someone trustworthy to act on your behalf as your Power of Attorney; and remember to take with you the relevant original identity documentation so your identity can be verified by an Australian Consular Official

Source: http://www.propertyobserver.com.au/