Real estate scam alert
Post-Melissa demand sees fraudsters profiting from fake listings
WITH an increased demand for housing after the passage of Hurricane Melissa on October 28, fraudsters have stepped up their attempts to fleece desperate people through real estate scams.
One realtor from the south-central part of the island told the Jamaica Observer on Tuesday that the demand for housing has increased following Melissa, with many displaced people in western Jamaica trying to relocate.
“My phone is filled with people looking places to rent. Some have been scammed by people using TikTok; people have called me to ask me my thoughts on rentals that they are pursuing and when I check it out, it is a scam. We have listings in our company that we see on TikTok renting,” the realtor said.
He said the situation is terrible, and pointed out that even traditional media is now being used by the fraudsters.
“People have to be careful of even classified ads, too. Some people who are advertising in the classifieds are not the owners; they are just putting something out there, so it is hard to tell who is genuine,” added the realtor.
Fellow practitioner Kimberly Blair, of Gourzong Realty Group, meanwhile warned those looking to purchase property to be cautious.
“The escalation of real estate scams is deeply concerning, particularly given the financial vulnerability of many buyers at this time. I encourage Jamaicans to slow down, exercise extreme caution, and protect their hard-earned money. Vigilance is your first line of defence,” said Blair.
Andrew James, chairman of the Real Estate Board (REB), told the Observer that the body is aware of the scams and has been making efforts to address the issue.
“I have been hearing about it from other agents in the industry, so we are aware. We are in discussions with the JCF [Jamaica Constabulary Force] and the Realtors Association of Jamaica [RAJ] to see if we can increase the public awareness. We have organised a meeting, so as soon as we meet we will proceed,” James said.
Following growing concerns about real estate fraud last year RAJ, in collaboration with the REB and the police, had pledged to develop a strategic plan to combat the issue.
However, RAJ’s Second Vice-President Roger Allen said the plan was delayed by Hurricane Melissa.
“We are going to be ramping it up now. We are having workshops and seminars with our members in that regard, we are also ramping up our online presence, so basically we will have a new entity or individual that is responsible for those efforts,” Allen said.
He added that the organisation is focused on identifying patterns within these scams.
“We will be having a central system of reporting and recording. We have 1,700 realtors across the island so instead of having 20 realtors with 20 different cases, we have asked that …it is centralised,” said Allen.
“Recently a member was complaining that they had a rental for $120,000 and basically someone had it advertising for $30,000 using similar details to the realtor,” said Allen.
He said the RAJ anticipates a rise in property sales in areas that were slightly affected by Hurricane Melissa and so it will be intensifying its effort to sensitise the public about possible scams.
“You have properties that are not located in the hardest-hit areas that may be damaged by water but the building is still intact, you are going to have persons who will market their own property — what we call sale by owner — whether its online or in the papers, and you will have persons with the wrong intention exploiting an unfortunate situation,” said Allen.
“We are encouraging the public to know their realtors, and only engage with a realtor who is able to provide a licence. To look at a property, we [realtors] are not demanding or requesting cash up front, and if the price looks too good to be true, that principle must be applied in reality,” Allen added.