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9 Common Rent-to-Own-Homes Scams

With rising inflation earning money through illegal sources is high these days. Thus frauds and scams are quite common. Sometimes companies get successful, while there are times when they do meet a dead end. In this blog, we will discuss a few property-related scams that dealers and agents do about rent-to-own homes and how you can avoid them.

Most Common Rent-to-Own Homes Scams

Why should we discuss these scams? The reason is simple: discussing the scams is essential; buyers get awareness and don’t make the dire mistake of becoming victims. Let’s have a look at them below.

  1. Exceedingly High House Price

Having a higher or lower house price compared to the market is normal, but you often come across properties with exceedingly high prices compared to the current market value. Thus, buyers should always do their homework before concluding.

  1. Making you Sign Fake Documents

Signing the contract is the nail in the coffin. It comes at the end of the purchasing process. Fraudulent companies intending to manipulate buyers will try to have them sign fake documents before anything is finalized. These documents can help them steal your necessary bank information and be used for other types of fraud. So, be careful before signing any legal documents.

  1. Absence of Communication

Red Flags are always there, but when we are desperate to own a home now, we don’t see them. One of the most common red flags is that the communication between the seller and buyer suddenly comes to a halt. This usually happens when the seller has taken a large amount of money as a down payment and has no plans of giving you the property.

  1. House Information is Incomplete

While going through the website and brochures of a real estate agency, you might notice that the information about the house is incomplete. Mostly crucial data like 

  • the date of its construction, 
  • certificates of inspection and safety

 which are essential for buyers, are missing. Keep a check, and dont be fooled easily.

  1. Have no brick-and-mortar setup.

Today, most businesses, due to advancements in technology and ease of their users, have converted to online sources, but a good thing about them is that they have a proper physical office. This makes their business legit. You can visit them in case of any confusion online. But be aware of the companies that are only operating online. They can fool you at any time, and you won’t even know where to catch them from.

  1. Arranging unnecessary Seminars and Meetings

Arranging extensive meetings and seminars is not the task of a real estate agency or agent. The different organizations these agents and agencies are associated with keep having workshops, conferences, and seminars. When going to these gatherings, you should be careful as they might devise schemes to collect money through fraud.

  1. Check their Website

There are a few indications that tell a website is fake. These signs are misspelled website names; check the small lock sign in the address bar, and enter the URL through a website checker. If a website doesn’t pass these tests, then find some other website.

  1. Rent-to-Buy Home Property is not authentic

How to find out the legitimacy of your rent-to-buy home is a question in itself and it comes at a further stage. Sometimes a house is purchased, and then the legal owner steps forward. Another instance in this situation is when the property agencies and agents send messages pretending to be the owners to confuse the buyers, leaving the deal without any financial compensation. Thus, Beware.

  1. Mentally Pressurising the clients

Fraudulent sellers and property dealers have great tactics like claiming that other buyers are willing to give the right price for the house, and you might get tempted by this offer. That is a way to pressure buyers into signing the house contract without giving time to think.

Are You Looking For a Legit Dealer?

Dont be scared. If you are looking for a legit dealer then visit Stop Renting Albany and own a home now.

Frequently Asked Questions

Q1. Are rent-to-own scams?

Ans: As discussed in one of the points mentioned above, rent-to-own homes are not all scams but can be used for fraud. So, it should be noted that if you notice the red flags discussed previously, then avoid the seller, property dealer, or agent.

Q2: How do you avoid rent-to-own scams?

Ans: Studying the concept of rent to buy homes, thorough research of property and its owner, and looking for signs like demanding more money for a house, the website being incomplete or having the wrong URL are a few ways to avoid scams.

Q3: Can you pay off rent-to-own early?

Ans: Paying off the rent to own payment early depends on the deal between the seller and buyer. If the contract has this clause, it is good to add it. That will help you pay off the rent fast, and you can own the property as soon as the payment is paid.
Interesting information about Jable

Read also : Advantages of Purchasing a Rent-To-Own Homes

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