KINGSTON, Jamaica – Renters and buyers are being urged to exercise caution as scammers are entering the real estate industry via online channels in an attempt to fleece desperate house hunters.
“I think because of the fact that persons need places urgently, they’re not really doing their due diligence,” Director of Real Estate Dealers and Developers at the Real Estate Board, Claudia Allen, told Observer Online.
Allen confirmed she was aware of perpetrators luring renters by using fake advertisements posted to renting hubs online and trying to convince them to send money via banking transfer.
The scam listings typically show pictures of real local apartments stolen from legitimate listings, or show no pictures at all, simply inviting prospective renters to call or WhatsApp for more information.
Allen is now concerned that technological advancements like artificial intelligence are being used to aid such scams.
“I figure there’s some use of AI somewhere in there, because based on the information that it is there- it’s too good to be true, but it’s still almost verbatim real. It might seem legitimate, but when you dig a little deeper and it’s sending you somewhere else to collect your information,” she said.
Observer Online conducted our own investigation into the scams, and they were easy to find. One rental listing, posted to Facebook Marketplace, purported to show a two-bedroom home off Lilford Avenue in Kingston for $40,000 monthly, except a reverse google image search of the property photos listed a home in Port Morant.
When the poster was contacted via WhatsApp, the individual insisted that a deposit of $40,000 was needed before the property could be seen, but assured that the deposit was “refundable after viewing [if] you don’t like.” Additionally, the poster who self-identified as “Mrs Leary” requested photos of an ID.
It was only one of several such listings noted over the course of a month, with many of the perpetrators blocking Observer reporters when they were discovered.
In the face of being found out as dishonest before any transactions could be conducted, ‘Mrs Leary’ simply responded “Lucky you”.
Allen explained that her team had recently referred one similar case to investigators followed by a scam alert to warn residents. She commented on how pervasive the issue has become.
“One person actually copied [a realtors’] license number; that’s the extent that they go to, we found there was a female, and it was actually a gentleman’s salesman number and the telephone number was an overseas number. When you proceed to that number, it’s asking you to submit some information,” Allen said, adding “So it’s going to another extent, which is not real estate business in any way, shape, or form.”
She stressed that giving up personal information should not be a prerequisite for information regarding, or even access to, a property. Exchange of money for this service should also never happen, Allen said.
“There should be no finder’s fee in terms of down payment to look at a house. That is a no-no.”
Observer Online also noticed individuals requesting a one or two-week subscription fee to be sent listings. This, too, Allen said is not proper practice.
“That’s a red flag. If they say give me $5,000 to find a property, or $10,000 to find a property, Normally, I know, based on my knowledge, that [realtors] ask you, ‘what price range are you looking at? Is there a specific area?’ And then they reach out to you to see if there’s anything they come up with but it’s not [for] a fee.”
Another suspected scammer who interacted with Observer Online identified himself as an employee of the Jamaica Defence Force (JDF) and provided identification. He had posted his ‘home’ on the Jamaica Classifieds site. The young man proceeded to call and invite the team to see a home via WhatsApp but indicated that a fee of $45,000 was necessary to secure the home as “others were interested”. This was a popular line for those conducting the scams.
The young man also produced a renter’s form to collect personal information. When the individual realized a payment would not be forthcoming he blocked the team. The number has since been disconnected from WhatsApp.
The Jamaica Classifieds app warns prospective renters against sending any money to individuals claiming to be landlords or realtors before seeing a property and provides a reporting option for suspicious activity.
When Observer reporters used the feature to tag a suspicious property where the individual posing as a landlord had solicited money from a prospective renter, the listing was removed within hours and tagged as a property that violated the rules of the app.
Allen says driving the issue is the difficulty many people are facing in finding a home to rent or buy despite the boom in construction.
“To me, I can’t even say it’s a buyer’s market, it’s a vendor’s market,” Allen said.
The director revealed that, based on the board’s observations during inspections, vendors are pricing above valuations, adding that this contributes to locals being priced out of the market in urban areas.
“People will still buy, not necessarily Jamaicans, but we have overseas persons who are buying these properties. So it does not necessarily leave a lot for middle or low income in these areas. That’s what we see on our end.”
When Observer Online spoke to Senior Superintendent of Police Stephanie Lindsay, she said that the Jamaica Constabulary Force had not flagged any reports relating to the scam yet but urged renters and buyers to be cautious.
“People who you are engaging with must have proper identification that you can identify- You can’t take your money and pay online without seeing [the property], whenever you are exchanging money it should be against receiving the keys for the property,” the superintendent said.
Allen revealed what residents should look for in identifying unscrupulous individuals as they seek living accommodations.
“I know some people are desperate but even the pricing- you’re not going to find somewhere in Phoenix for $40,000. So that is a red flag [if] the price is just too good to be true. And if it’s too good to be true, you have to check before you even reach out to the person.”
And for how to make sure individuals presenting as realtors are legitimate?
“By checking the Real Estate Board’s website, they can do a search of a registry to make sure that the person is there. If they cannot find the name, they call and we try to assist them,” Allen explained.
Recognising that a lack of real estate knowledge is hurting Jamaicans, Allen says the board is planning to do its part to increase awareness.
“[We] plan for the next financial year to do a lot of public education because we realize it’s a problem. And even myself, when people ask, ‘where do you work?’ You say the real estate board, they just assume that you’re selling property. We have to drive both of them hand in hand, the enforcement and the public awareness.”
– Dana Malcolm