"Once a buyer has gained occupation of a property it can be a lengthy and expensive legal battle to have them removed, even if they have not made any of the promised payments that they said would be made. This points to the importance of vetting potential buyers and making sure that occupation is not handed over until the transfer of ownership has been complete," advises Norton.
"There might be certain circumstances that require the buyer to move in before transfer has taken place. In these instances it is important to ensure that a deposit has been paid at the very least."
Donna Sipman, property consultant at RE/MAX Masters, says that the estate offers an idyllic lifestyle which makes it so alluring. "Houses for sale in Blair Atholl range from R8m to R60m. Many of these mansions have been on the market for a while as the number of buyers who can afford such homes is limited and this market segment is generally slower moving than the average property market," says Sipman. "The exclusivity and luxury of the Blair Atholl Estate and others like it in the surrounding areas has attracted many 'fake' buyers who make offers on properties."
She notes that those operating within the syndicate are convincing as many are not first time offenders. "These perpetrators often have the same modus operandi; they need to move into the property quickly and have the cash. They know how the sales process works and can even provide substantiating documentation to legitimise their claims of funds to make the purchase. Inevitably, they do not ever produce the cash," Sipman explains.
Syndicate members often submit offers with a promise of cash or bank guarantees. They provide FICA documentation and have been known to sign the transfer documents in order to convince the parties involved that they are serious. If deposits are asked for, they are delayed. If guarantees are not issued, fake documentation can be provided to prove the process is legit.
"Members of the syndicate have gone to great lengths to be as convincing as possible. They even arrange lunch meetings with the seller and agent, or meet the conveyancer at their offices to apologise for the delays and convince all the parties of their efforts to correct the situation," says Sipman.
"Excuses range from delays with the reserve bank, cash not arriving from the source, money leaving their account and not arriving in the conveyancing attorney's trust account and others related to religious restrictions."
The fraud remains undetected until the homeowner no longer has the patience to wait for the pending funds and a breach notice and subsequent cancellation, due to non-performance, is sent by the conveyancer.
"It is not easy to spot these buyers and distinguish them from the rest. These 'fake' buyers are people from all walks of life. They can be businessmen, individuals claiming to be attorneys or government officials or from humanitarian organisations," says Sipman.
