How to avoid property scams

Scams related to property are becoming increasingly more sophisticated, with an average yearly increase of 32%.

Who should be wary?

• Home buyers – Beware of intercepted communications and fraudulent account details that could steal your deposit.


• Sellers – Guard against fake proof of payment and fraudulent buyers.


• Landlords – Protect yourself from phishing scams and fake tenants claiming false payments.


• Tenants – Verify account details to avoid sending rent or deposits to illegitimate accounts.

Four common property related scams:

1. Email and payment scams

Fraudsters are able to intercept emails and track the progress of transactions. When payment is about to be made, be that to a landlord or a conveyancer, the fraudster sends an email that appears to be from an almost identical address, providing ‘new’ bank details.

This loss of money has huge implications for those buying a home as they may be financially compromised, and worse, it puts them in breach of their contract, which in turn makes them liable for damages to the seller. Whilst neither party is at fault - conveyancer or buyer - that loss may never be recovered.

How to avoid email scams:

• Check the sender’s actual email address carefully—scammers may use a display name matching a real company, but the email itself is incorrect or a generic address like Gmail.

Example:
🚨 Fake email:
- From: Heritage Bank - heritagebank@gmail.com (Banks don’t use Gmail)

✅ Real email:
- From: Heritage Bank - support@heritagebank.co.za (Official company domain)

Scammers may also use small tricks, like heritàgebank.co.za or heritage-bank.co.za (adding a dash). Always check the actual email address, not just the display name.


• Be cautious of urgent or threatening emails demanding immediate payment.


• Verify banking details directly with the bank or landlord.


• Beware of generic greetings like ‘Dear Customer’ instead of your actual name.


• Watch for spelling and grammar mistakes in emails.


• Hover over a link to preview the actual website address—scammers may disguise malicious links. Do NOT click if the website (URL) looks suspicious.


• If your device is stolen, immediately change your email password from another device to prevent unauthorized access.

2. Rental scams

A scammer poses as a landlord, advertises a property that either does not exist or ‘steals’ one from a property marketing site. You may even get to view a rental property without the agent present, as the fraudster will avoid meeting you in person, and may convince the landlord to show you the property. The scammer will say he has negotiated a lower price for the rental and ask for two months deposit. Holiday homes are a major target as most of these transactions are done online without seeing the property. Tips to spot and avoid other rental scams.

How to avoid rental scams:

• Always view the property in person and meet the landlord.


• Verify the agency's credibility before signing a lease.


• Check if the bank account provided is legitimate.


• Avoid paying deposits before signing a contract – Legitimate landlords and agencies follow proper lease procedures before requesting payment.

3. Government subsidy scams

Scammers target lower-income individuals by promising to move them up on the waiting list for a subsidy in exchange for upfront payments.

How to avoid government subsidy scams:

• No deposit or fees are required for a government housing subsidy.


• Confirm legitimacy by contacting the official Department of Human Settlements.


• Be wary of subsidy applications promoted via social media.

4. False Property Practitioners

Scammers pose as estate agents using stolen identities, fake listings, and fraudulent documents to deceive buyers and sellers. They create multiple listings to appear legitimate and offer deals that seem too good to miss. Another common scam involves a fraudulent agent inflating a home’s value, presenting a buyer, then delaying the sale. A second "buyer" later offers less, pressuring the seller to accept—unaware the agent and buyers are colluding.

How to avoid being scammed by false agents:

• Ask to see the Property Practitioner’s Fidelity Fund Certificate, and check that it is still valid.


• Check with the Property Practitioners Regulatory Authority that the agent is registered.


• Be cautious if the property deal or the agent seems too good to be true.


• Never pay money to an estate agent. This is the role of the conveyancer, whether it is the deposit or agent commission.


• Be wary if you are not able to view the property or if excuses are made about why you can’t do a viewing.


• Do not be scammed by an agent who doesn’t pitch to a viewing that is a legitimate property. Some sellers are unaware that their property is also being marketed by a scammer, and will show the house to unwary potential buyers.


• Stay well-informed about property prices in the area you are viewing, to ensure you are not being duped into a bargain that doesn’t exist.


• Always call the agent’s official franchise to ensure they work there.

Relevant South African laws to reference:

• Consumer Protection Act – Covers fair trade practices.
• Property Practitioners Act – Regulates estate agents.
• Prevention of Organised Crime Act – Covers fraud and financial crimes.
• South African Fraud and Prevention Service – Non-profit organisation which aims to improve vigilance with regards to fraud.