How to avoid fraud when buying a property – real examples from practice

Buying a home is a high-value transaction in which even a single missed check can have serious financial consequences. Most real estate transactions go smoothly, but that does not mean a buyer should rely solely on a good impression, verbal assurances or the promise that “everything is in order”.

The risk does not always look like obvious fraud. Sometimes it starts with an unusually attractive offer, other times with pressure for a quick deposit, an unclear identity of the seller, or documents that are promised “later”.

That is why a safe purchase begins before you sign any document and before you transfer any funds.

When you browse properties for sale, assess not only the price, location and condition, but also how transparent and verifiable the transaction itself is.

1What does risk in a property purchase actually look like?

Fraud does not always begin with a forged notarial deed or a person posing as another owner.

In practice, risky situations can be considerably more ordinary:

• a request for a deposit before basic documents have been provided;
• a property presented by a person with an unclear right to sell it;
• concealment of encumbrances or a dispute over ownership;
• use of a power of attorney that the buyer has not checked;
• a mismatch between the property being shown and the documents;
• insistence that part of the price be paid in an unusual way;
• creating artificial pressure for an immediate decision.

False or inaccurate offers are a separate risk. A misleading property listing does not automatically mean fraud, but inconsistencies in price, photos, floor area or the identity of the person offering the property are reason enough for a more careful check.

2Scenario 1: “There are two other buyers – send a deposit today”

How should you react?

Before handing over a deposit, the following must be clear:

• who you are paying;
• on what basis the recipient accepts the money;
• who the owner is;
• exactly which property is being reserved;
• for what period;
• what the agreed price is;
• what happens to the amount if the check reveals a problem;
• what happens if the deal cannot be completed for a reason related to the seller or the property.

Especially if you are buying a property for the first time, it is important that the excitement of a good offer does not get ahead of checking the terms.

3Scenario 2: The person selling is not the owner

Another warning sign is a situation in which all the conversations are held with a person who is not actually the owner.

This can be perfectly normal – for example a relative, an agent or an authorised representative. But their role must be clear.

The risk arises when you receive explanations such as:

“The owner is abroad.”

“I handle everything on their behalf.”

“The documents are with the lawyer.”

“There is no need to talk to the owner.”

On their own, none of these circumstances proves a problem. But they should not be accepted as sufficient grounds for payment either.

4Scenario 3: Sale through a power of attorney

Transactions through a power of attorney are possible, but they require particular attention to the authority to represent.

If the owner is not present in person, it must be established whether the person representing them actually has the necessary rights for the specific actions.

Do not rely on a photo of a document sent in a messaging app as your only check.

In such a transaction, at least the following must be established:

• who the owner is;
• who the authorised person is;
• the scope of the authority;
• whether the specific transaction falls within that scope;
• who has the right to receive the sale price.

If in doubt, the documents should be reviewed by a lawyer and by the notary who will take part in the transaction.

5Scenario 4: The apartment looks flawless, but there are registrations

One reason not to rely solely on a notarial deed provided by the seller is that ownership is not the only circumstance of interest to the buyer.

The Property Register contains registered deeds and allows searches by specific property, document and person. A property certificate reflects the registrations, notations and deletions for the relevant property as at the time of issue.

A practical scenario might look like this:

The home is real, the seller is real and the notarial deed is real too. The buyer, however, assumes that this automatically means there are no other legal circumstances that need to be checked.

That very assumption is the mistake.

It is not enough to ask the seller “Does the property have any encumbrances?” and accept a verbal “no”.

6Scenario 5: The documents describe something different from what is shown

A harder-to-spot problem is a mismatch between the space actually used and the documents.

For example, during a viewing you see a home with an enclosed terrace, an annexed room, a converted attic space or another change.

This does not automatically mean illegality or fraud.

But it does mean you need to establish exactly what you are buying according to the documents.

Do not assume that everything physically present in the home is automatically part of the property in the same way it is presented to you.

Compare the identification, areas and appurtenant parts in the documents with the specific property you have seen.

7Scenario 6: The price is too good and there is a condition to act immediately

A low price can have a perfectly logical reason:

• major renovation needed;
• urgent sale;
• unfavourable floor;
• problematic location;
• specific layout;
• limited demand.

The problem is the combination of an unusually low price and a refusal to give you time to check.

A typical risky situation is:

The market offers similar homes at a noticeably higher price. You find a “unique opportunity”, but you have to pay a deposit before you have received a full set of information, because the seller is supposedly leaving, has other buyers or the offer is valid only until the evening.

The harder someone tries to limit your time for a reasonable check, the more attention the deal deserves.

8Scenario 7: The bank account changes at the last moment

Buying a property involves substantial sums, so payment instructions must be checked carefully.

Imagine you are already communicating by email about an upcoming payment and you receive a new message:

“There has been a change. Please transfer the funds to this account.”

In the case of such a change, do not use the same email conversation as proof that the instructions are authentic.

Get in touch through an independent, already known channel and confirm:

• the recipient;
• the IBAN;
• the payment reference;
• the amount;
• the recipient's connection to the transaction.

Especially with large transfers, an extra check is far more sensible than assuming the message was necessarily sent by the person whose name you see.

9Scenario 8: You are buying off plan, but the promises outnumber the documents

10Scenario 9: “The notary will check everything anyway”

This is a dangerous oversimplification.

The involvement of a notary is an important part of the transaction, but it does not mean the buyer should leave every technical, administrative, contractual and factual check until the last moment.

The Notary Chamber states explicitly in its official material that the notary carries out certain checks, including those related to ownership and the parties. In another opinion, the Chamber clarifies that it is not within the notary's powers to repeat the administrative and technical verification of every official document and of all the physical characteristics of the building.

The practical conclusion is simple: the legal, technical and financial checks on the purchase must start early enough, not on the day of the notarial completion.

11Scenario 10: The same property is “reserved” by more than one person

This is especially risky when deposits are accepted without clear written terms.

The buyer must know exactly what “reservation” means.

It should not be just a note or a bank transfer with an unclear reference.

The written document must clearly establish:

• the parties;
• the specific property;
• the amount;
• the agreed sale price;
• the deadline;
• the parties' obligations;
• the grounds for returning or retaining the amount.

The larger the amount, the less room there should be for verbal arrangements.

12Scenario 11: The seller refuses an independent check

One of the clearest warning signs is not a specific document but behaviour.

If you meet constant refusal, irritation or pressure in response to normal questions, do not ignore it.

For example:

“Why do you need a lawyer?”

“There is nothing to check.”

“Other buyers don't ask so many questions.”

“If you are going to check everything, I'll sell to someone else.”

A professional check is not an accusation against the seller. It is a normal part of the decision to acquire a high-value asset.

13How to check the seller

Before agreeing to a serious payment, it must be clear who you are making the deal with and on what basis they have the right to dispose of the property.

Check for consistency between:

• the seller's identity;
• the ownership document;
• the description and identification of the property;
• any representation;
• information from the official registers;
• the data that will be written into the contracts.

If the owner acquired the property through inheritance, gift, partition or another earlier transaction, the specific legal history may require additional documents and professional analysis.

Do not try to draw complex legal conclusions on your own from just a few copies of documents.

14Verify information from an independent source

A good rule in a property deal is that important information should not come only from the party with an interest in persuading you to buy.

The Registry Agency provides official services for searches by property, person and document in the Property Register, as well as property certificates.

This means that when certain information can be confirmed from an official source, it is sensible not to rely solely on a photo that has been sent or a verbal assurance.

15The most dangerous combination: low price, urgency and no documents

Each of these factors on its own may have a perfectly normal explanation.

Taken together, however, they should raise your guard:

• the price is unusually low;
• you have to decide immediately;
• the documents will be provided after payment;
• the owner is not present;
• payment has to go to another person;
• there is not enough time for a lawyer or other check.

In such a situation, the fear of “missing the deal” should not determine your behaviour.

It is better to miss out on one property than to transfer a significant sum under unclear terms.

16What not to do before the check

A few simple rules can significantly reduce the risk.

Do not:

• pay a large sum on a verbal promise alone;
• sign a document you do not understand;
• accept a photo of a document as a sufficient check;
• transfer funds to a newly provided bank account without independent confirmation;
• ignore a mismatch in names, area, address or identifier;
• let someone else's urgency replace your own checking;
• assume that a beautiful renovation means flawless ownership.

These rules do not complicate the deal. They make it more predictable.

17What does a safe process look like?

First – identify the property

You need to know exactly what you are buying and whether what is shown matches the documents.

Second – identify the seller

Establish who the owner is and who has the right to act on their behalf, if there is a representative.

Third – check the documents and registrations

Do not leave the essential checks until after you have paid a significant sum.

Fourth – put the terms in writing

Price, deadlines, payments, handover of possession, documents and other material arrangements must be clear.

Fifth – pay in a traceable, pre-verified way

The recipient and the grounds for the payment must match what was agreed.

18When should you stop the transaction?

Not every irregularity means fraud. Sometimes a document is missing because it has not been issued yet, there is a technical error, or the seller has not prepared the transaction well.

But there is a difference between a problem that is being resolved and a problem that someone is trying to hide.

It is a serious warning sign if:

• the story keeps changing;
• different people give you contradictory information;
• documents are constantly postponed;
• you are pressed to pay first;
• it is unclear who receives the funds;
• the involvement of a lawyer or other independent check is refused;
• a discovered discrepancy is brushed aside without evidence.

In such a situation, the right reaction is not to convince yourself that “it will surely be fine”, but to demand clarity before the next step.

19How to avoid fraud when buying a property?

There is no single check that on its own fully guarantees a safe transaction.

Protection comes from several consecutive actions: establishing ownership, checking the property, reviewing the documents, clear written agreements, careful handling of payments and using professional help when the case requires it.

The most common mistake is for the buyer to concentrate so strongly on the home itself that they forget the transaction around it.

A nice view, a good price or a fresh renovation cannot make up for unclear ownership, a risky contract or a payment to the wrong person.

That is why, when buying, do not ask yourself only “Do I like this property?”.

Ask a second question as well:

“Can I verify every important claim on which my decision to pay is based?”

If the answer is “yes”, the transaction stands on a much firmer footing. If it is “no”, the next step should not be a payment, but a check.