In Lilongwe’s fast-paced real estate market, premium properties continue to be in high demand. However, this surge in demand has also created an opportunity for property scammers. Whether you’re a season property investor or buyer, it is crucial that you prioritize remaining vigilant and protecting yourself from potential fraud.
This guide will walk you through the top red flags to watch out for so you can secure your investment and avoid falling victim to property fraud.
1. Unverifiable Listings or Agents
One of the most common property scams involves fake listings or unauthorized agents posing as legitimate representatives. Scammers often use eye-catching photos to lure unsuspecting buyers.
To protect yourself, always ensure that both the listing and the agent are from reputable, verified sources. Check that the agent is licensed and affiliated with recognized real estate bodies. Additionally, it is essential to conduct a Title Search at the Ministry of Lands to confirm ownership and ensure the property is free from legal disputes. Verifying credentials upfront will save you time, money, and potential heartache.
2. Inconsistent or Fake Ownership Documents
Properties are sometimes marketed by multiple agents, which can create confusion regarding ownership. Scammers often exploit this by presenting fake or incomplete documents and pressuring buyers into making payments before full verification. Nowadays, it is never surprising to come across fake title deeds in Malawi.
Before transferring any funds, it is vital to thoroughly verify all documentation, ensuring that title deeds and contracts are complete and consistent. Missing or inconsistent documents, such as title deeds or contracts, are major red flags. If a seller or agent is hesitant to provide documentation or insists on payment before verification, consider it a red flag and walk away. Take the extra step of confirming the property’s legitimacy by checking official property records at the Ministry of Lands to ensure that the property is not involved in any legal disputes or claims. Additionally, compare the names on the title deed with those on the seller’s official identification, such as a driver’s license, passport or national ID. It is advisable to request a driver’s license or passport, as these are generally considered more secure forms of identification.
3. Limited Physical Access to the Property
In genuine real estate transaction, viewing the property in person is standard practice. Scammers often use on fake images or doctored virtual tours to give the illusion of a premium property, or give excuses to avoid letting you see the property in person, especially if they have something to hide.
Always insist on visiting the property before making any financial or legal commitments. Be cautious if a seller or agent refuses to grant access for a viewing, or if they only offer virtual tours with no option for physical inspection. Additionally, if the seller or agent continuously delays a viewing, or only grants partial access – allowing you to see only some rooms but no access to other rooms, it could mean the property either does not exist or is significantly different from what is advertised.
4. False Sense of Urgency
Scammers often create a false sense of urgency, pressuring buyers to act quickly by claiming there are other offers on the table or that time is limited. They may also request payments through unconventional methods that are difficult to trace.
While some properties might sell quickly, high-end real estate generally takes more time due to its value and market specificity. Legitimate agents will always allow time for proper verification and thorough due diligence. Take your time and avoid any form of rushed payments. Always use secure and traceable payment methods, such as bank transfers through reputable financial institutions. Be cautious of any request for unorthodox payment methods, as these could indicate potential fraud.
5. Unrealistically Low Prices
While it is natural to look for a good deal, premium properties come at a premium price. It’s important to be skeptical of premium homes listed significantly below market value. Scammers often use this tactic to entice buyers or renters, but once payment has been done, they disappear.
Make sure to compare the listing price with similar properties in the area. For example, in 2024 if you find a three-bedroom home sitting on 0.4-hectare land in a prime location like Area 12 listed for MK100 million, that is well below average market price and could be a major red flag. Always trust your instincts—if a deal seems too good to be true, it probably is.
Investing in premium property is not just about aesthetics or location—it is about safeguarding your financial future. By staying vigilant, thoroughly verifying every aspect of the transaction and identifying red flags, you can protect yourself from property fraud. Always rely on trusted real estate agencies with a proven track record in premium properties. Partnering with a trusted real estate agency, like Reynolds Portfolio, ensures that your property transactions are handled with transparency and professionalism, giving you peace of mind throughout the process.
