Gauteng home seekers are losing thousands to fake property agents
JOHANNESBURG — Johannesburg home seekers are losing thousands of rand to property scammers who advertise homes they do not own, impersonate legitimate estate agents and collect deposits before disappearing, with some schemes now sophisticated enough to get victims inside the actual property before asking for money.
In one recent case highlighted by Johannesburg property company Etchells & Young, a prospective tenant lost R51,000 after responding to what appeared to be a legitimate rental opportunity. The fraudster had copied a genuine property advertisement and allegedly managed communications from both sides of the transaction. To the legitimate estate agent, the scammer presented themselves as the prospective tenant. To the victim, they pretended to be the agent.
The arrangement meant the real agent eventually showed the real property to the real prospective tenant, while neither apparently knew that a third person was controlling the transaction between them. The victim subsequently paid money to the fraudster.
The case exposes a weakness in one of the most common pieces of advice given to people looking for property: never pay for a home you have not viewed. A viewing can confirm that the property exists, but it does not establish that the person requesting the deposit is a registered estate agent or has authority from the owner to rent it.
The Property Practitioners Regulatory Authority has warned consumers about property scams and says people should verify that a property practitioner and the business they represent are registered with the regulator before making payments.
Registered property practitioners are required to hold valid Fidelity Fund Certificates, which consumers can verify through the PPRA. The requirement provides an important independent check when a person claims to be an estate agent. The problem extends beyond people impersonating agents.
Johannesburg has also recorded cases involving people allegedly attempting to sell properties they did not own. In one Protea Glen matter reported earlier this year, a family said it paid R180,000 for a property and moved into the house before the person they said was the actual owner arrived and challenged their occupation. Criminal proceedings arising from property fraud allegations remain before the courts.
The cases mean home seekers dealing directly with a supposed landlord face a separate verification problem. A person may have photographs, keys, access to a property or documents bearing an address without necessarily being its registered owner or having authority to collect money for it.
Ownership of South African property can be independently established through deeds information, while an agent’s status can be checked with the PPRA. Where someone is acting on behalf of an owner, their authority should also be established before a deposit or purchase payment is made.
This has become increasingly important as property searches move online. Listings can be copied from legitimate agencies, photographs can be reused and the names of genuine property practitioners can be impersonated on WhatsApp, Facebook and property platforms.
For Johannesburg residents under pressure to secure scarce or competitively priced accommodation, a demand to “pay now before someone else takes it” can make delaying a deposit feel like losing the property.
Recent cases show the greater risk may be paying before establishing who is actually on the other side of the transaction.
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