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Property Purchaser's checklist | reduce risk of being scammed

As property purchasers are the party who have to EFT the purchase amount into a hopefully valid trust account of the conveyancing attorneys; they are the party most at risk of being scammed. This article discusses how potential property purchases can reduce their risks.

1. Whilst the purchaser is the party most at risk, the conveyancing attorneys are traditionally chosen by the seller of the property. However, it is perfectly within the rights of the purchaser to insist on using their conveyancing attorney, and they could include that as part of their "offer to purchase", which is after all their offer, and they can place whatever clauses they want into it - the seller of course doesn't have to accept.
2. Before appointing a conveyancing attorrney, check that:
• Is the Attorney a qualified conveyancer? Get their member number and check it with the Legal Practice Council.
• How much experience does the attorney have?
• They are willing to meet in person; and in person confirming their bank account number and exact spelling of their email address.
• Documentation containing banking details will be hand delivered.
• All documents being attached to emails will be password protected.
• Insist on paying money only to the conveyancing attorney's trust account. The system of paying some to the estate agent's account and some to the property attorney's trust account, multiplies the risk of getting scammed. The estate should get paid by the attorney at the end of the transaction.

• Share the banking details of their trust account at the start of the process, allowing a lot of time to carry out multiple telephonic checks. Insist that they seller obtains their bank account number telephonically; and phones for a final check of it before making payment.
• Frequently emphasise telephonically what their correct email address is, and to watch out for derivations of it.
• Share details of the extent to which they are insured against cybercrime, phishing, man in the middle scams and identity theft.
• Vett the reputability of any estate agents who enter the fray, both if the purchaser chooses to use a property agent, but especially of any estate agent the seller is using.
• Help the purchaser construct the offer to purchase, so that it has them as the conveyancing attorneys. There are also some other strategic clauses, in the offer to purchase, which I will write about over the coming weeks.
• Some property attorneys sell property as well; this is allowed these days. In my opinion this is the safest course of action to take, but is up to the seller, not the buyer. The purchaser, however, can look more favourably at property sales where professional lawyers are conducting the sale.

Once you have a property you like

Once you've found the property which aesthetically appeals to you, and the price is right, ask your lawyer to:

• get hold of the title deed, and check that the seller is the rightful owner of the property.
• check whether there are any liens or encumbrances on the property.
• obtain from official records details of the property's boundaries and zoning regulations.

• Any estate agent the seller is using is registered with the Property Practitioners Regulatory Authority. Check what the agent's reputation is like by looking at online feedback and ratings (e.g. on Google).
• The seller's name on the title deed matches the ID documents being shown.

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