Taysir Al-Mufarraj, the official spokesperson for the General Authority for Real Estate , warned against the fraud and scams that have become prevalent in this important sector, through tricks and methods that they are keen to constantly renew.
As Taysir Al-Mufarraj, the official spokesperson for the General Authority for Real Estate, pointed out during his participation in the “Ya Hala” program on Rotana Khalijia TV, one of the most common methods of fraud in the Kingdom’s real estate sector is as follows: The fraudster searches for properties that people want to rent, whether in tourist or entertainment areas, then contacts the property owner. He inspects the property, photographs it, takes pictures and videos, and gathers all related information, including any advertisements posted on any platform. He collects information about the property, its details, and prices.
The most common methods of fraud
The second step involves advertising the apartment on unregulated platforms such as WhatsApp, Telegram, and others. These platforms are typically outside the purview of regulated real estate platforms, of which there are 22 licensed ones.
Al-Mufarraj also explained that the fraudster sets a price lower than the actual value of the property, attracting tenants, and asks them to pay a security deposit or down payment before viewing the property. After he gets what he wants, he stops communicating with the tenants.
He added that the conman lures the victim with a price lower than the actual value of the apartment, for example, if it's 50,000 riyals, he offers it for 30,000. Then he begins contacting the victim, offering to show the apartment after obtaining the security code and a key, and after contacting the building's security guard.
He confirmed that he asks the victim to pay a deposit, and works to ensnare him by claiming that another person wants to buy the residential unit.
Intermediaries are their entry point.
Taysir Al-Mufarraj (Official Spokesperson for the General Authority for Real Estate) reveals to Ya Hala the most common methods of fraud in the real estate sector. @REGA_KSA @jalmuayqil # Ya Hala Program # Rotana Khalijia pic.twitter.com/HwOyO8DP9m— Rotana Khalejia (@Khalejiatv) December 9, 2023
He also pointed to a more sophisticated scam method, where the fraudster claims to be a broker and offers to send a contract from an rental platform. He then traps the victim.
The fraudster gained access to the rental platform by obtaining the password through a licensed intermediary who provided him with the information and password.
Al-Mufarraj emphasized that the intermediary might also unknowingly fall victim to this type of fraud by giving their personal data to a fraudster who then markets their services for a monthly fee.
The Real Estate Authority warns citizens
The spokesperson for the General Authority for Real Estate also urged those wishing to complete property rental transactions to avoid dealing with unlicensed individuals claiming to be brokers, real estate offices, or property owners, in order to prevent falling victim to fraud and transferring funds to unknown persons.
He stressed the importance of first verifying that the party marketing the property unit is a licensed real estate broker holding a "Fal" license, whether an individual or an institution.
The property must also possess a real estate advertising license issued by the General Authority for Real Estate. The broker's information must then be verified. The advertising license can be checked through the inquiry feature provided by the Authority on its e-services platform via this link: (click here). Entering certain information, such as the broker's license number, the individual's ID number, the establishment's unified number, the broker's name, or the license type, will display the inquiry results. The advertised rental price can be assessed by visiting the rental index on the "Ejar" platform to ensure it aligns with the price range and average prices for the property, considering its specifications and location.
He also advised that payments be made through the electronic payment channel provided by the Ejar online rental services platform (click here), after the electronic contract has been verified. He cautioned against direct bank transfers to avoid falling victim to fraud.
Meanwhile, Taysir Al-Mufarraj, the official spokesperson for the General Authority for Real Estate , confirmed that the authority had recently received a number of reports. He indicated that 92 real estate brokers had been referred to the relevant authorities due to suspected cases of financial fraud.
