Fraudsters “block” apartments. Expert: Seven advice, how not to be fooled
In a world where studios can cost PLN 0.5 million, and ordinary apartments even PLN 1 million are hardly surprising that people want to sell them. Now the sale of an apartment inherited from grandparents in the city enables investment or purchase of real estate elsewhere (e.g. a house outside the city), and even funds for education abroad. Whenever a given market becomes so hot, “sharks” appear – and there are plenty of them now.
“This can mean trouble”
First of all, the owner who wants to avoid paying commission to real estate agents (too high, taking into account the level of services rendered) publishes an advertisement on a local website.
Some of those interested will of course be normal customers – but some are fraudsters who work more or less according to the following Modus Operandi:
- Probably such a “buyer” will pretend to be an interested person, unrelated to any company or agency. He will also claim that he is ready to buy for cash.
- The alternative is that he will pretend to be an agent or representative of a company that buys real estate at higher than normal prices. In this way he wants to encourage a gullible seller to sign the contract.
However, none of the above is 100 percent. real. The warning is that this “buyer” wants to hurry to conclude a notarial preliminary agreement with – attention! – smaller than the standard advance.
It is The first real hook – And the most dangerous. I emphasize: The warning is lower than the standard advance payment. In short – if the “buyer” wants to pay less than 10 percent. Advances, and at the same time hurry to visit a notary public, it can mean trouble.
“The seller may face a two -year period in which he will not be able to sell his apartment”
Why should this be a warning? For a very simple reason.
After signing the preliminary notarial deed – even if only 10 percent were paid. Advances – the seller may have a temporary problem for a year or longer. It consists in the fact that he practically deprives himself of the possibility of selling real estate – even if the buyer does not pay the remaining amount – because the preliminary contract goes to the land and mortgage register … and here the swamp begins.
It is true that the seller has gained a guarantee that the advance payment will be paid (and that it will be lost if the transaction is not completed). However, problems start when the time comes for the seller to actually pay and finalize the transaction. Then there will be delays (allegedly made in good faith).
Then the “buyer” begins to argue that the apartment is actually not worth as much as the parties originally agreed. Every possible reason will use it. In the meantime, the seller must take into account subsequent delays, as well as potentially long court proceedings to stop the transaction and release the apartment to sell to another, this time the “real” buyer.
First of all, after signing the preliminary contract and making an advance payment, the buyer's data will go to the land and mortgage register. The problem is that if he does not pay the rest on time, the seller will not be able to sell the property until this information is deleted.
The law actually gives the buyer 12 months to request the transaction, because only after 12 months the seller can submit an application for removal of information about the “unsuccessful” buyer from the land and mortgage register. The buyer may also try to challenge the seller (although it will probably fail).
As for the delays: if our “buyer” does not pay within the agreed date, then-in short-the seller may face even a two-year period (taking into account huge delays in the activities of land and mortgage register courts, these may be cautious estimates) in which he will not be able to sell his apartment-and all this for only 6- or 8-percent. advance.
“Blocking” the possibility of selling an apartment
The apartment to be sold has not been technically stolen, but was “blocked”. Often, the seller is also not financially prepared to cope with organized legal … “resistance”.
Otherwise, the sale price of the apartment for 500 thousand. PLN was beaten to PLN 400 PLN, and yet the buyer did not manage to spend the money anyway.
Fraud scheme
“BUILDING BUYER” is a constant threat to the real estate market.
Someone could now ask: why in the second given example the buyer will not put out “promotional” 400 thousand. zloty? Finally he will receive 100,000 PLN reduction, and the seller will fully agree.
The reason why sales did not come to fruition is simple: the buyer has no money.
Sale of the apartment (illustrative photos)
Already skipping the fact that he can continue to press the price or try to conclude a contract ensuring payment in tranches – the purpose of “real estate shark” is much more far -reaching. Usually he or his company create a “portfolio” “acquired apartments” to sell to an investor (usually foreign). As you probably guessed – at a market price, and maybe even with a small hill.
Of course, such a portfolio can be de facto “legalized” – if the investor actually appears (often cheated, but about it in a moment) ready to put out money and if all sellers finally sell their premises. If this happens, then you can get the argument that if there was no harm, there is no fault – unlikely then that the case will be dealt with by the prosecutor, because the sellers will have a clause prohibiting them with further claims after the transaction is completed.
Such a pity, however, exists – in the previous example the sellers were “legally” forced to sell below the market value, but in this case it does not necessarily have to be the main purpose of the scam. In fact, fraudsters can be about to create a portfolio of real estate that they do not have property rights, but their owners are limited in sales rights without their own knowledge.
“They generate income from the sale of real estate that they do not yet have”
However, there is a second side of fraud related to a false portfolio – in such cases, speculators often stumble over their own legs. Do you remember the smaller than standard advance? It comes from the fact that the buyers do not have money to postpone 10 percent. for every apartment that plans to “block”. In the meantime, they are looking for investors, and even the least experienced investors looking for a portfolio want to see not only a group of apartments, but also a group of sold apartments.
So why not hit both ways at the same time? After all, our unethical buyers (we will call them cheaters) now become sellers, but they sell in an equally unevenly way, because-through marketing, and even using the photos provided by “blocked” sellers-our fraudsters actually “sell” apartments, which they did not even buy unaware to people who are required to pay a full 10 % advance payment … or more.
In this way, they actually generate income from the sale of real estate that they do not yet have, while buying apartments that they will never buy in fact until they find an investor, and which ultimately may not be able to buy all the actually presented apartments.
In such a procedure, unethical notaries are involved in such a way, or there is a forced to sell.
“People who were victims of fraudsters who created groups on social media wrote that district prosecutors deal with the case”
Over the past three weeks, people who were to pay such an advance have been contacted twice with the author; Each time, five minutes was enough to explain the situation and reveal a diagram similar to what was described above.
In both cases, simple search on the Internet allowed to reach groups on social media created by deceived people who were fooled by a fraud related to a false wallet.
Protect yourself
Fortunately, this fraud is quite easy to overcome. Here are the author's suggestions:
1. If you sell a flat for 600,000 PLN or less request that the entire transaction takes place during one meeting with a notary public. Do not agree to any advances.
2. If you are still concerned (e.g. the buyer presses for an immediate meeting – within a few days), try it: even if he is a Polish tradition that the buyer pays for a notary public and PCC tax, then demand that you as the seller both chose and pay for the notary public (PCC leave the buyer).
3. It should be remembered that if the buyer wants to make an appointment with a notary public within a few days, it should be a warning for you. When you appear at the meeting, the buyer will most likely present you a well -worn story that he understood it as a preliminary contract and that he wants to pay only 6 or 8 percent. advances. Unfortunately, face to face, many laymen bend under pressure and end in a swamp.
The truth is that in Poland the processes of selling an apartment for cash do not take place quickly. Each reasonable notary will demand statements of a lack of debt, no tax to pay for the apartment, the last statement from the land and mortgage register, etc. The scam is simply unlikely and unreasonable, but if the seller presents a notary public that does not demand the above formalities – then run away where the pepper grows.
When selling an apartment, be careful of some warning signs
4. Watch out for agencies or companies claiming that they will sign a contract, take favorable photos, and then actually buy a flat from you (allegedly to resale the end buyer). This can only be another element of fraud.
5. If you sell a larger apartment, you can not rationally expect someone to pay PLN 1 million in cash the same day. If, despite this, the “buyer” claims that he has cash, make an appointment with his notary and insist at the end of sales during one visit. In the end – if they say they have money, they have it. And don't worry if the buyer disappears, because when it is time to show the cards – it is exactly what the cheater does.
6) If – and this is reasonable – the buyer wants to pay an advance on a larger transaction, get a minimum of 10 percent. – And use the services of a lawyer (and again your own notary public). In short, too much money is at stake to play games.
7) If you are tempted by the company (and I would like to clearly point out that I am not saying that all speculators on the real estate market are cheaters), try it: first check that the company (buyer or seller) has established a limited liability company. If not, remove it from the list. No one -man entrepreneur will buy many apartments in their right mind and will not be sole responsibility.
Secondly: if it turns out that such a limited liability company exists, check its last financial statements, including revenues, profits and assets. If you see low income, no profit or loss and only symbolic assets, give up sales.
The company has no assets because in fact it is not the owner of its portfolio. It has low revenues, because they come mainly in the form of these “advances” for a false portfolio, which probably only is enough to cover cash flows (if at all), which means low or zero profit or loss.
Finally, be assertive. I am still dealing with very nice people who were hurt, mainly because they believed that being polite and passive is tantamount to being an honest and decent man. This is not the case. You may not be an experienced real estate specialist, but the facts are facts. Stick to facts and cash, a solid notary public and (if the transaction is large) a good lawyer, and everything will be fine.
