If you're looking for a new property to buy or rent, watch out for people who want to steal from you.
We thought we had seen all the scams scammers have to offer. Stealing our personal details and using them to commit fraud, stealing money from our bank accounts and the latest trend: calling and pretending to be from your bank and convincing you to move your money. Now there is another one: property scams.
Paul Stevens, CEO of Just Property, says fraud is a growing concern for South African property buyers, sellers and tenants.
“Transactions often involve significant sums of money, making this a target area for criminals. Scams are becoming more sophisticated, but there are clear ways to protect yourself. Working with a properly registered and vetted agent is one of the most effective.”
He says for example, a flat in a sought-after suburb is listed online at a really good price. “The photos look genuine and the agent responds quickly. But when you ask to view the property, the story changes.
“You are told it is currently occupied, or that a deposit is required before access can be arranged. This is often where the trap is set. Once the money is transferred, the scammer disappears. In some cases, the property does exist but belongs to someone else entirely. In others, it is a complete fabrication.”
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This is how scammers run rental scams
Stevens says in rental scams, criminals often use real property images to build trust.
“They copy online listings, change the contact details and pose as owners or agents. In sales scams, criminals may intercept legitimate communications between buyers and conveyancers.
“They change the bank details and large sums of money are redirected without the client’s knowledge. Some criminals go as far as creating false documentation that appears official, including proof of payment, bank confirmations or even fake identity documents.”
He warns there are also scams targeting those who apply for government-subsidised housing.
“The scammers send text messages or social media messages claiming you have been approved for an RDP house. A small registration fee is requested to process the application. There is no legal fee of this kind and the money is lost the moment it is paid.”
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How to recognise the signs of a scam
Stevens says most scams begin with a property deal that appears too good to be true and then rely on pressure tactics.
“You may be told there are multiple interested buyers or that a deposit must be paid immediately to secure the deal.
“Some scammers may avoid in-person meetings or offer reasons why the property cannot be viewed. By contrast, a real agent will encourage you to take your time, ask questions and meet in person, either at the property or at a registered office.”
He says there are also signs to look for in the way communication is handled.
“Free or unofficial email addresses, vague phone numbers or reluctance to share physical office details are warning signals.
“A registered agent will provide clear written contracts, accurate property information and official documentation throughout the transaction. All payments should be made into a regulated trust account.
“If you are asked to pay money into a private account or are discouraged from confirming banking details with the main office, this should raise immediate concern.”
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How to protect yourself against property scammers
According to Stevens the first and most important step to protect yourself is to work with a registered property practitioner.
“A professional agent is accountable to the Property Practitioners Regulatory Authority (PPRA) and must hold a valid Fidelity Fund Certificate (FFC).
“This certification confirms that the agent meets the required standards and offers protection through the PPRA’s Fidelity Fund should something go wrong due to dishonesty.”
Confirm the agent works for an agency, holds a valid FFC and is registered with the PPRA. The agent’s email address should have the same domain name as the company website. You can also call the office to confirm (finding the number yourself and not using the number the agent offers).
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Checklist for verifying a property professional
Stevens says before signing any agreement or making a payment, take these steps to verify that the agent is legally registered and working with a reputable agency:
- Ask for the agent’s full name and Fidelity Fund Certificate (FFC) number
- Visit the PPRA’s online register at www.theppra.org.za to search by name or FFC number
- Call the PPRA directly on 087 285 3222 if you need help verifying registration
- Check that the agent’s email address ends with the name of the company they work for, for example, @just.property
- Visit the property brand’s official website to confirm the agent is listed, or phone the head office for verification
- Verify that payments are made to a regulated trust account, not a private or personal bank account
- Ensure you receive written contracts and official documentation before transferring any money.
He says safe property transactions rely on transparency, documentation and the use of proper channels. Clients are encouraged to insist on formal contracts, to work with approved conveyancers and confirm all banking details before making any payments. If you are uncertain about any aspect of the process, a professional agent will provide the necessary reassurance and information.
“Buying, selling or renting a property is a significant decision. Trusting the right partner can make all the difference, protect your interests and help you proceed with confidence.”
