No one likes to be scammed and especially when it has to do with a large investment like real estate. Real estate scammers have been around for centuries and, every once in a while, we hear of a real estate scam that was worth hundreds of thousands of dollars all over the world. If you are getting into the real estate market in Ghana, one of the things you should be well informed about is how real estate scams in Ghana work.

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In this article, we are going to look at some of the real estate scams that are both simple and sophisticated. Some might just be an individual crook trying to scam innocent buyers while others are well-planned scams that involve many corrupt people and officials. We do not want you to be scammed out of your hard-earned money so let’s look at how to identify scams and avoid them.

Before we get into some of the real estate scams, there are some ground rules that you need to know and follow:

1. Not all that Glitters is Gold

Fraudsters are happy when they meet greedy people. This is because these are the easiest group of people to scam. If you hear an offer which sounds too good to be true, it probably is. Scammers like to come with the ‘this is a special and exclusive offer’ line. Thinking that today is your lucky day, the scammers will take you down the rabbit hole and eventually part away with your money. This is not to say that exclusive offers are not credible; you should conduct checks to verify that the offer is genuine and is coming from or is backed up by a reputable and trustworthy source. If you fail in getting such verification, you would be best advised to keep away from that offer.

2. Be Informed

When money is in the hand of a person without knowledge, you can be guaranteed the money and the person shall part ways over time. Fraudsters thrive on ignorance so make sure you are well educated about the real estate market before delving into it. Read about the Ghanaian real estate market and be abreast with all the transaction procedures.

3. Double-Check

Taking people’s word for granted can get you scammed. Double-check any information that has been given to you. Scammers will want to gain your trust and when you lower your fact-checking guard that is when they strike. Always double-check, even if it lengthens the time of house hunting. Remember that this is a long-term investment you’re looking at making; extra time taken to be certain is very acceptable. Don’t let anyone force you to make a payment when you are not 100% sure.

This video shares some important information on investing in Ghanaian real estate.

Now that you have these 3 points at the back of your head, we can now start deciphering some of the real estate scams and how you can avoid them.

Real Estate Scams

Here are some of the popular real estate scams that you might come across when looking for property to buy. These are not all the scams out there but they will give you an idea of what the scammers out there are doing so you are not caught by surprise.

1. You can give us the money, when the property is ready we will get it for you.

Some landowners and agents would want to convince you to make payment for a rental or house so that it can be completed within a time period so you can move in. Sounds great right? But it doesn’t always go as planned. Some of these landowners may not be out to scam you but paying ahead of the completion of a development is a highly risky option.

If you have to make a payment, make sure that you are working with a registered real estate developer. Do your background checks with the registrar general department to verify if the company is registered in Ghana. Do further research on the owners of the company and get to know their track record before going ahead to make a down payment. Do not make a full payment. If it is an individual who is asking for the downpayment then we advise you to desist from that since he may not be as accountable as a limited liability company that is recognised by the Government. If, however, you opt to make such payment, we advise you to have the arrangement documented in a proper contract prior to payment and also, ensure that you pay in a manner that is easily traceable, like bank transfer, etc.

2. Fake Agents and Documents

These are professional scammers who, in their bid to scam people, will present you with amazing ‘exclusive’ investment opportunities that are time-bound and will require you to make substantial payment as soon as possible to benefit from this once in a lifetime opportunity. This is the regular script that they use but it may vary every now and then. They will then present you with fake documents of the land or property to try to further convince you.

When scouting for property, one of the resources that you will need to invest in is time. It takes a while to find the perfect property in the right location and at the right price. Trustworthy websites like Meqasa help make this process easier by providing thousands of listings by verified agents and developers in Ghana on one website. Meqasa requires the agent or developer to register with a valid business certificate from the Registrar General’s department as well as any valid National Identification document. Agents and Developers also pay a fee to be on Meqasa which further reduces the incentive for any fraudulent individual to join the platform. Meqasa also permits users to help with screening of properties by reporting suspicious listings and agents via the “Report this listing” feature which is present on each listing on the online real estate marketplace.

With the passage of the Real Estate Bill recently, it is going to be easier to distinguish between fake and real agents as a registered agent or agency will have a unique identification number that you the buyer can use to verify their identity and level of experience within the real estate space in Ghana.

3. Tenant Acting as a Property Owner – money laundering

Some tenants who also want in on the real estate scam will pose as landlords to lure unsuspecting tenants. This scam is normally a collaboration between the tenant and the landlord. After the tenant has rented/sold you the property, the landlord appears and demands the money or you will have to move out. Don’t even bother looking for the tenant, he will be unreachable.

In Ghana, when you are renting a property, make sure you visit the property firsthand to get all the necessary information before negotiating payment. Ask the neighbours within the area about who owns the property and do all your due diligence. Ask questions. Questions reveal a scammer in the long run so don’t hold back.

4. Using Unreliable Online Platforms

Over the years, many online platforms have come up claiming to be online real estate marketplaces. They have pictures of properties for sale and for rent but not all the properties’ representatives have been verified or are even real. If you have to use an online marketplace to find a place to rent or buy property in Ghana, make sure they meet these criteria:

• A credible track record
• Verified agents and developers
• A functioning customer support service
• Credibility
• Rate of updates
• Mailing list
• Services – Do they have an app?
• Do they have an office in Ghana?

Meqasa checks for all the above that is why it is the most trusted online marketplace for property in Ghana.

5. Apartment Investment Scams

On the sophisticated side of real estate scams, you should look out for what we call luxury apartment scams. The people who are most likely to fall for these types of scams are property investors resident in different countries. This is how it works: a group of scammers will inform you of a luxury property in Ghana that can yield about 30% in profits each year. You will be required to invest a large amount which will make you the owner of one of these apartments.

What they will not tell you is that there are other apartments on the same floor that the scammers also own. They take your investment and use it to acquire other apartments and direct all their clients to their own apartments leaving yours empty for an extended period. Some may get you the 30% they promised in the first year but in the subsequent years, you will hear only stories and excuses.

This is a wasted investment in a country like Ghana where property investment is on the rise. To avoid such painful scams, make sure you deal with property developers directly and not through any third party. A good property development agency will have safe and secure channels that are in partnership with major banks in Ghana through which you can make payment after signing an agreement. There are also escrow services available to help keep your investment safe especially when you are dealing with such large amounts.

READ ALSO: 5 Reasons Why You Should Buy Property in Ghana

Real estate investments, in Ghana, are generally safe if you exercise the appropriate caution and verification to keep yourself safe. Some of the key takeaways on investing in Ghanaian real estate is to deal with developers directly, question everything and know the processes. Following these principles will help you stay safe and reap the benefits of investing in Ghana.