Toronto is one of the fastest-growing cities in the world. Unfortunately, this positive growth has also contributed to an uptick in real estate fraud. While rare, future Torontonians who are looking to purchase a home ahead of their relocation should take precautions to prospect themselves from fraud.
In this blog, we’ll discuss how relocators and local home buyers alike can spot potential real estate fraud, along with strategic methods for ensuring you’re protected as you navigate the market.
Looking to succeed in Toronto’s competitive real estate market? Our strategic buying services can help you optimize your purchase. Call us at 416.441.2888 or reach us by email at info@christensengroup.ca.
What is Real Estate Fraud?
In itself, the term real estate fraud can be fairly broad or encompassing. However, in today’s consumer landscape, it most often refers to a form of title fraud. Speaking generally, common incidents look like this:
- Impersonating the owner of a specific home, a fraudster will list or advertise the property as for sale – unbeknownst to the homeowner. This is done either privately or with the assistance of a real estate agent.
- Once the home is “on the market” the fraudster begins receiving offers from various buyers. Eventually, the home is “sold”. The fraudster receives a deposit or downpayment, while the legitimate homeowner and buyer remain aware.
- Because relocators are (usually) unable to view a home before buying, they are preferred targets for fraudsters.
While many recent incidents in the Greater Toronto Area have looked like this, it’s important to note that real estate fraud can take other shapes as well.
Eager to make a strategic home purchase in Toronto? Explore these resources before heading for the market.
- Why You Should Think Twice About Working With a Discount Agent
- The Strategic Value of a Starter Home
- How to Buy a Privately-Listed Home
Why Buy Sight Unseen?
Given the risks of real estate fraud, shouldn’t relocators simply hold off on purchasing a property until arriving in Toronto? In reality, this question is rather complicated. Toronto real estate follows trends of its own. For both buyers and renters, markets can shift overnight, greatly impacting opportunities for success.
Relocators who choose to rent upon their arrival in the city will be paying premium rates and in some cases, may be required to sign a formal twelve-month lease before having the opportunity to buy. During this time period, the cost of housing in Toronto is likely to escalate, making it more difficult to purchase a home the longer they wait.
With this in mind, one of the distinct advantages of buying a home ahead of relocation is the ability to substantially cut back on costs.
Canada’s First Home Savings Account provides individuals with a tax-advantaged savings account to build up funds for the purchase of their first home. Click here to learn more.
Spotting Signs of Fraud
Spotting signs of real estate fraud often boils down to an age-old adage: if a deal sounds too good to be true, it probably is.
When searching available homes ahead of your relocation, keep an eye out for properties that are listed at significantly lower prices compared to others in the area. These listings could be attempting to entice relocators into making a quick, unscrutinized purchase.
Additionally, be wary of high-pressure sales tactics or real estate agents pushing for immediate decisions. Legitimate sellers understand the importance of due diligence and will give you ample time to make an informed decision.
Other red flags include cash transactions or requests to wire money directly to an individual’s account.
Relocating to Toronto from elsewhere? Consider these related readings for helpful guidance.
Your Best Protection + Home Buying Perfected
As a relocator, the most effective way to protect yourself from fraud is by working with an experienced, top-performing Toronto real estate agent.
At Christensen Group, we impart our deep knowledge of Toronto real estate to help you make an impeccable purchase. We understand that moving to a new city comes with unique challenges – that’s why we’ve crafted a specialized process to assist relocators.
Not only can we verify that your purchase is safe and secure, but our unrivalled knowledge of the local market can ensure you land a home love, in an area you’ll thrive in.
Looking to purchase a home in Toronto? Our advanced strategies and insider industry network can help you find the perfect property. Call us at 416.441.2888 or reach us by email at info@christensengroup.ca to get started.
