Tips to Avoid Being Scammed by Property Brokers

Tips to Avoid Being Scammed by Property Brokers

Buying or selling property through a broker (agent) can certainly make the process faster and easier. However, not all brokers operate professionally. Some are dishonest and can harm both buyers and sellers. To avoid fraud, here are some important tips to keep in mind:

1. Ensure the Broker is Legal

Choose a broker registered with AREBI (the Indonesian Real Estate Brokers Association) or who has an official office. Check their business license and office address; don't rely on intermediaries with unclear credentials.

2. Conduct Track Record Research

Find out the broker's reputation from previous clients. Check online reviews or ask for testimonials from people who have used their services. Professional brokers are usually transparent and have a clear portfolio.

3. Be Careful with Sweet Promises

Be wary of brokers who make excessive promises of "big profits," "fast processing," or prices that are too low compared to the market. Remember, realistic property prices depend on market conditions.

4. Don't Pay Money Upfront Without Proof

Never pay a down payment or commission without a formal written agreement. All transactions should be conducted through an escrow account or directly to the seller's account, not to the broker's personal account.

5. Always Make a Written Agreement

Ensure a written contract that outlines the rights and obligations of both parties. The contract must be signed and stamped to avoid future disputes.

6. Check Property Documents Carefully

Request photocopies of ownership documents such as the SHM (Property Ownership Certificate), IMB (Immigration Building), and PBB (Property Ownership Certificate) for verification. If necessary, use a notary or PPAT (Private Ownership Land Deed) to ensure the authenticity of the documents.

7. Use an Authorized Broker or Trusted Property Agency

Working with a large property agency is safer than working with an individual broker with unknown backgrounds. Authorized companies typically have strict operational standards.

Property brokers can be very helpful partners, but they can also be a gateway to fraud if we're not careful. The key is to check the legality, create a formal agreement, and take time to make decisions. With careful steps, you can conduct property transactions more safely.