Most of the time, the agents that you meet are true and genuine people who are honest with you. In fact, it is very rare in Malaysia to meet scammers.
However, real estate fraud is still an issue and many fraud cases go unreported. It is never too late to be aware of how property fraud can happen as it can happen to anyone at any time.
All Agreements in Black and White
Despite the fact that it involves more work, never rely purely on verbal agreements alone. All agreements should be in black and white and have the signatures of both buyer and seller. Even if it is a small payment or a small matter, never take things for granted.
What type of lot is it?
A common type of scam in Malaysia is when unscrupulous agents try to convince you to purchase a lot that eventually turns out to be a Bumi lot. Always ask your lawyer to check with the relevant authorities regarding the status of the property you have purchased before putting a down payment.
In some of these cases, the title deed has been forged to cheat unsuspecting non bumi buyers end up having to let go of that property when its true status comes out. In most of these cases, they don’t get their deposit back.
Does your agent promise you that you can get sky high rental rates? Does he promise you the property value can go up 300% in a time of slower economy and lower demand? As a potential house buyer, we must always be aware of slick and sweet tongues agents who will say anything to sell a house. They may promise you the world but reality will hit you hard later on. If the agent sounds too good to be true, chances are it’s a lie.
No Solid Timeline
If your agent cannot give you a clear date when you can sign the purchase agreement, when you can get the keys or anything else, it is possible that there is a problem or issue he/she is not telling you about.
Conmen can sometimes pose as agents to sell you a house or property that is actually not on sale. One of the ways you can detect whether an agent is real is to see whether they are attached to any agency. The older and larger the agency, the more trustworthy the agent is.
There are also many legit small time or independent agents, and you can check with that they are registered with the Malaysian Institute of Estate Agents .
Hopefully these simple tips will help you avoid losing your money unscrupulously and keep the real estate business honest and clean.