Top Warning Signs of a Suspicious Conveyancing Transaction

Law Blog

In the conveyancing world, millions of dollars worth of properties exchange ownership every other day. The heart of such transactions is the solicitor, whose role is to ensure both the buyer and the seller get a fair deal. However, fraud is nothing new in conveyancing, and, as such, conveyancing lawyers must undertake all due diligence to protect their clients. Unfortunately, it can be a challenge if you are a new conveyancer and are on the lookout for clients. The temptation to complete conveyancing transactions fast can be appealing. However, there are tell-tale signs that a deal reeks of fraud that you must watch out for. Read on.

Demand for a Fast Sale -- One of the first warning signs of a suspicious transaction is a seller looking to sell a property fast. As a conveyancer, you must be very careful with a seller that wants their properties sold quickly despite the possibility of a genuine reason. The logic is that a lot goes on in such transactions and solicitors must take all the necessary precautions to ensure that they verify every bit of information provided. In most cases, a client demanding a fast sale does not give you sufficient time to confirm critical information. As such, be wary and move with your pace.  

Vacant Property -- Most of the properties that are susceptible to conveyancing fraud are usually vacant with excellent examples being holiday homes. The reason is that a dishonest seller can comfortably list the house for viewing since they don't have to worry about the real owner showing up. Despite this, there are ways you can know if a property has been vacant for quite some time. For instance, check the refrigerator for stale air since it is an excellent indicator of when the property was last occupied. Additionally, observe the seller's mannerisms for signs of lack of knowledge on fundamental questions such as recent renovations on the property. Besides, talk to the neighbours and ask them if they know the owner of the property. These actions seem subtle, but they go a long way towards protecting your client.   Excessive Reservation Fees -- If you have a client who is ready to make an offer on a property, then you first have to work out how much reservation fees are required. The fee allows your client to reserve the property for a specific period. Although the amount to be paid differs depending on the type of property, watch out for excessively high reservation fees. Usually, fraudsters ask for a higher sum and then withdraw from the transition without an explanation. If you come across a seller asking for an excessive amount without good reason, then ask your clients to stay away.

Work with a company like Ray Swift Moutrage & Associates to learn more.

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26 August 2019

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