Phil Spencer warns of property scam: Britons told to watch out for ‘new build fraudsters’
Phil Spencer gives first-time buyers advice on fraudsters
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Property expert Phil Spencer has urged Britons to watch out for scammers looking to make money out of unsuspecting homebuyers. Buying a property in the UK is a long process that can often be fraught with difficulties. While many buyers may be thinking about conveyancing, solicitors and surveys, property scams can often be overlooked.
In a YouTube video for Move iQ, Phil described a “sophisticated” scam that criminals are using to exploit the demand for new build properties.
The scam works getting buyers to hand over holding deposits for “new build properties”.
They try and collect as many holding deposits as they can in a very short period of time.
Once they’ve received the money, the scammers then disappear.
Phil explained further: “More sophisticated are the actual fraudsters who set out to exploit the demand for new builds to relieve you of your deposit.
“The way it works is something like this… The criminals set themselves up as agents for an exciting new development.
“They may acquire basic certification to work as estate agents or open up a small office to appear credible.
“Very often though they’ll arrange to meet you in hotel lobbies or coffee shops somewhere near to the scheme.
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“Then using high pressure sales tactics they convince eager buyers – often first-timers – that they must pay a holding deposit immediately or risk missing out.
“The scammers work to get as many unsuspecting buyers to hand over deposits in as short a time as possible.
“Then they shut up shop and disappear with your money.”
Although the scammers will appear to have basic paperwork, Phil said there are ways to check how legitimate agents are so you don’t get caught out.
He advised always making appointments at an office.
The property expert added: “If you’re suspicious, ask for evidence of membership of the property ombudsman scheme and for the names of the company directors and the company’s registration number.
“The search on Companies House will certainly show you if it’s a genuine business.”
“So watch out for yourself,” he added.
Phil also said “the one thing you always need” is a good lawyer.
They will be able to give you the best legal advice and are the “number one defence” against fraudsters.
Another tactic fraudsters often use is posing as the owner of a property.
The scam sees them try to sell a property without the true owner of a property knowing.
Kirstie and Phil’s Love it or List it airs tonight at 8pm on Channel 4.
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