Facts You Must Know?
Fraud
can cost your business money and damage
the standing of your company. Even small frauds can add up to significant
sums. Major frauds involve disruptive investigations and the losses can ruin
your business. Customers may be alienated. Staff morale is often
affected and subsequent recruitment may be difficult.
Why is fraud on the increase?
This is due to a number of
factors the growth of the business sector, the greater
sophistication of the criminal, and developments in computer
technology. Specific measures can be taken to safeguard computer data, some
of which are noted later in this section.
What can you do?
The most important preventive
measure is to be aware of the possibility of fraud, and to foster
that awareness throughout your company. By far the most
effective action you can take will be to ensure you have an efficient
supervisory structure in place.
There are also a number of practical
measures you can take. The detail of these will depend on your
own business situation and the lists given here are intended only to prompt
some thoughts. It is wise to discuss fraud prevention with a specialist
adviser.
Think about your employees?
Check all references for new
employees. Define each person's responsibilities clearly and make sure they
know whom they should report to if problems arise. Avoid having "indispensable"
staff who only know the workings of
a particular part of the business. Many frauds require regular activity by
the fraudster. Make sure everyone takes regular breaks from work.
Real estate schemes, scams, and
fraud all constitute a form of theft which criminals use to steal your home
or real property. Adhering to the principle that a person’s home is
their castle, this is possibly the most
devastating form of victimization.
Real estate fraud
can take many forms. The information provided in this circular will
hopefully serve as an educational tool to help you become more aware of the
various forms of real estate fraud and how you can avoid becoming a
victim.
The purchase of a property, a
home or a piece of land usually involves a great deal of money exchanging
hands You should thus be extremely vigilant when engaging in any transaction
regarding a venture of this nature.
Use the following guidelines as a
means of protecting your interests:
1. Always engage the services of
a reputable estate agency and a bona fide
attorney.
2. There are many legal and
personal details that need to be included on the contractual document
designed to purchase a property? All intended to protect both you and the
seller. Your bank, your attorney, your estate agent and your consultant
should all be consulted on this crucial issue before you sign any such
document.
3.
'Voetstoets'? The
concept of 'voetstoets' in a property deal is defined as such: Most property
sold 'voetstoets', that is, is it is sold as it stands and the seller gives
no guarantee and will not be liable for defects. The 'voetstoets' clause
removes the seller's obligation to repair any defects on the premises any
time after you have taken lawful possession of the property. Thus, close and careful scrutiny from each and every angle of the
property you intend purchasing is very strongly advised.
4. A common recurrence in
international property fraud is the role played by 'development
companies’ that simply do not exist. Have your bank or attorney
check if the company is authentic by having a search performed at the
Registrar of Companies in Nigeria.
5.
Check
that the company does indeed own the property it is selling or has
the legitimate owner's permission to sell it. Our local authorities or our
deed's office will be able to tell you exactly who the legal owner is.
6.
Closely
scrutinize the company's references. Check out their previous
building projects as well as verifying details
with our local authorities or our building survey departments. Do not limit
yourself only to the references provided by the company itself, they could
be 'planted' by the company? Go outside the circle and investigate
matters.
7. Ensure that the company you
are dealing with has been in existence for a reasonable amount of time. Visit
the address detailed on the documentation and check
with other companies and people in the vicinity as to the status of
the company you are presently dealing with.
Real Estate Investor
Being a real estate investor
means protecting yourself from potential scams.
Just because someone holds a professional license of some kind doesn’t
mean that he is honest.
Many “seasoned” investors
couldn’t wait to sell us a house, showing us their comparable sales data
to prove the value. What do you do when you don’t have the resources to
protect yourself? We wanted to
answer that question and share some valuable advice you can use each time
you do a real estate transaction.
*Ask for I.D. When you are dealing with a seller whom you’ve
never met, and the home is vacant, ask for the seller’s I.D. Some scammers
pretend to own vacant houses and trade deeds for money.
*Always
place your deposit in your closing agent’s
escrow account. That says it all.
If the deal goes sour, you’re not chasing your money.
*Your own attorney reviews all deals. Make sure your own
attorney or closing agent represents you in every transaction.
*Check city liens. Always visit the local governmental agencies to
find out about pending liens that may not show up on the title search. This
can save you thousands. Ask us how we know.
*Stay in control of your deal. Don’t be intimidated by your
seller. Protect yourself and stand up for your rights in the contract.
*Use your own mortgage brokers or money sources.
Make these contacts before your first deal, so you are not pushed into using
a money source you don’t know. Rushing to get financing can be costly.
*Contingencies can protect. If you feel uneasy about the
transaction, be sure to use a contingency in the contract. A contingency is
a clause that binds the seller, but gives the buyer the right to cancel
within a certain period of time.
Hope we didn’t scare you too
much. We practice these tips each time we do a deal, and we’ve learned
many of these tips the hard way. Hopefully you won’t have to. This is a
great business and we love it.
Bonus
Tip #11: When you do make an honest contact, don’t lose it. Build on it
and grow from there
