Scammers are trying to take advantage of desperate homebuyers by infiltrating the real estate market through internet channels, both buyers and renters are advised to be cautious.
Claudia Allen, the Real Estate Board’s Director of Real Estate Dealers and Developers, informed Observer Online that “I think because people need places urgently, they’re not really doing their due diligence.”
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Allen said that she knew criminals were trying to trick tenants into sending money via bank transfer by posting phony ads on internet rental hubs.
Scam postings either include photos of actual local apartments that have been stolen from authentic listings, or they don’t display any photos at all and instead ask potential tenants to contact them via WhatsApp or phone call for further details.
Allen is increasingly worried about how technological advances, such as artificial intelligence, are being exploited to facilitate these types of fraud.
She noted, “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 it’s sending you somewhere else to collect your information.”
When we investigated the frauds ourselves, Observer Online found them with ease. A Google image search of the property photographs revealed a house in Port Morant, despite a Facebook Marketplace rental offering claiming to show a two-bedroom Kingston home off Lilford Avenue for $40,000 per month.
A WhatsApp message was sent to the ad, which stated that a $40,000 deposit was required before the house could be viewed but promised that the money was “refundable after viewing [if] you don’t like.” The poster, who described herself as “Mrs. Leary,” also asked for pictures of identification.
Over a month, several similar postings were made, and many of the offenders blocked Observer reporters when they were caught.
Mrs. Leary only said, “Lucky you,” after being exposed as dishonest before any transactions could be completed.
Allen said that her staff had just sent a scam notice to residents after referring a case identical to this to detectives. She made a statement about how widespread the problem had grown.
Allen stated, “One person actually copied [a realtor’s] 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 added, “So it’s going to another extent, which is not real estate business in any way, shape, or form.”
She emphasized that granting access to information on a property shouldn’t require disclosing personal information. Allen stated that there should never be a financial exchange for this service.
“There should be no finder’s fee in terms of down payment to look at a house. That is a no-no.”
Reporters saw people asking to receive listings in exchange for a one- or two-week subscription fee. Allen stated that this is also an improper procedure.
“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 they come up with anything but it’s not [for] a fee.”
Another suspected fraudster who spoke with reporters presented identification and claimed to be a Jamaica Defence Force (JDF) employee. His “home” was listed on the Jamaica Classifieds website. The young man then called and used WhatsApp to invite the team to view a house, but he said that “others were interested” and that a $45,000 payment was required to reserve the house. This was a common line used by con artists.
In order to gather personal data, the young guy also developed a renter’s form. The person banned the team after realizing a payment would not be arriving. Since then, WhatsApp has disconnected the number.
The Jamaica Classifieds app offers a reporting feature for questionable activity and cautions potential tenants against sending any money to people posing as realtors or landlords before viewing a property.
Using the tool to flag a questionable property where a person acting as a landlord had demanded money from a potential tenant, observer reporters saw that the listing was taken down within hours and marked as a property that violated the app’s guidelines.
According to Allen, the main problem is that, despite the development boom, many individuals are having trouble finding a place to purchase or rent.
“To me, I can’t even say it’s a buyer’s market, it’s a vendor’s market,” Allen said.
Based on the board’s observations during inspections, the director said that sellers are charging higher prices than their values, which helps keep locals out of the market in metropolitan 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.”
Senior Superintendent of Police Stephanie Lindsay told reporters that although the Jamaica Constabulary Force has not yet reported any scam-related incidents, they advise purchasers and renters to exercise caution.
“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 remarked.
Allen disclosed the characteristics that residents should consider while spotting dishonest people when they are looking for housing.
“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.”
Allen clarified that potential purchasers should verify that those posing as realtors are authentic 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 acknowledges that Jamaicans are suffering due to a lack of real estate understanding and says the board intends to do its share to raise 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.”
