How to avoid real estate scams: tips for secure transactions

Fraudsters are constantly refining their methods to deceive unsuspecting tenants and buyers. If you are interested in renting or purchasing property, it is vital to be able to recognize "red flags" as early as the listing stage.

Here are the most common fraud schemes in the real estate market and tips on how to avoid falling into the trap.

1. Urgent sale with a massive discount

If a property is listed at a price 20–30% below market value and the seller explains this by "urgent circumstances," be extremely cautious. A low price is a hook designed to make you quickly pay an advance or a deposit while overlooking legal due diligence.

2. Hidden rights of third parties

A significant risk when buying property is the existence of third parties who retain the right to use the premises — such as undisclosed co-owners, heirs who suddenly appear, or others with legally registered claims. Always demand a full ownership history and verify there are no encumbrances before signing anything.

3. Seller bankruptcy

If the person who sold you the property declares bankruptcy shortly after, a court may declare the transaction void (especially if the price was below market value). As a result, you risk losing both the property and your money. Always check the seller against bailiff databases and bankruptcy registries.

4. Forged documents and identity theft

Modern technology allows scammers to masterfully forge passports and registry extracts. Never agree to a deal (for instance, this applies to renting property without official registration) based only on photocopies. Insist on the official registration of the transaction.

How to protect yourself?

To safely rent or buy a property:

• Never rush into transferring money.
• Involve an independent lawyer or a real estate agent to assess the risks.
• Conduct all payments only through secure banking instruments.