- Swift action by settlement
agents prevents property sale fraud
- Suspicious questions about
identity checks raised red flags
- Warning for real estate and
settlement industries to be vigilant
Vigilant Western Australian
settlement agents have thwarted an attempt by a scammer to sell vacant land
they did not own, prompting an urgent warning from Consumer Protection for the
real estate and conveyancing industries to be on high alert for suspicious
activity.
So far, ten settlement
agents have received identical emails from someone falsely claiming to be the
owner of a vacant block in Yanchep. The scammer told the agents they are
overseas and requested a name change on the land title and assistance to sell
for the block for around $900,000.
In an effort to scope out an
unsuspecting agent, the email also requested details about how their identity
would be verified, specifically questioning whether they would need to attend a
Consulate to participate in a virtual meeting.
The unusual questions set
alarm bells ringing for the settlement agents given advice by the Department of
Local Government, Industry Regulation and Safety's Consumer Protection division
to meet the seller in person and, if this cannot occur, to use a face or
document verification service. If the seller is overseas, they advise using an
Australian Embassy Office.
It is important to verify
the identity of each person who is involved in a real estate transaction. The
Codes of Conduct for the real estate and settlement industries provide that
agents and sales representatives exercise due care, diligence and skill when
acting for a client, including a prospective client.
ID
Validation checklist for agents:
- check all documents are signed and endorsed
correctly and match signatures with those that may already be on file from
previous transactions;
- if official documents look suspicious, have them
independently verified by the issuing authority;
- where applicable, call the Consulate to confirm the
notary's identity and that they are a genuine member of staff. The Consulate
can then confirm they have endorsed an identity correctly;
- agents should insist on meeting the seller in person;
if this cannot occur, use a face and/or document verification service. If the
seller is overseas, verification should occur through an Australian Embassy
Office;
- be ready to ask qualifying questions that any true
owner would know about their property;
- if there is a concern about money being changed into
another currency, question why; and
- if a request for change of address is received for
the property, send confirmation to the previous address on record as well.
Consumer Protection has
communicated with real estate and settlement agents to remind them of the
identity verification obligations and provide further information in how to
detect these scam attempts.
The real estate and
settlement industry is urged to report scam attempts to Consumer Protection's
WA ScamNet team by calling 1300 30 40 54 or complete an online scam report at www.scamnet.wa.gov.au
Comments attributed
to Commerce Minister Dr Tony Buti:
"Luckily this scam was
caught in time, otherwise there would have been much heartache and stress for everyone
involved.
"I applaud the Australian
Institute of Conveyancers WA and the settlement agents for their swift action
in recognising the scam and alerting authorities. It clearly demonstrates that
the checks and balances put in place to prevent property scams are working.
"However, this is a timely
reminder of the importance of real estate and settlement agents to conduct
mandatory identity checks, especially if the person they are dealing with is
unknown to them and comes from overseas.
"Ultimately, if there is any
doubt, they should report their suspicions to the proper authorities and not
proceed with the transaction."
Comments
attributed to Consumer Protection Commissioner Dr Owen Kelly:
"Scams within the property
industry are becoming increasingly sophisticated and difficult to spot, which
is why vigilance from agents is so important.
"Thankfully in this case,
the settlement agents recognised the warning signs early and took the
appropriate steps to prevent what could have been a devastating financial and
emotional loss for the legitimate property owner.
"We urge real estate and
settlement agents to always take identity verification requirements seriously. Those
who don't could face prosecution as well damage to their professional
reputation."
Comments
attributed to Australian Institute of Conveyancers WA CEO Brook Durling:
"The settlement agents
involved are to be commended for their professionalism, vigilance and swift
action in identifying the warning signs before the scam could progress.
"This incident also
highlights the vital role a well-informed and alert settlement profession plays
in protecting property owners and supporting confidence in Western Australia's
property sector.
"These attempts will
continue, which is why fraud prevention must be a shared responsibility across
the property sector and the wider community. Being alert, asking questions and
reporting suspicious activity remains critical."
