All kinds of real estate scams (*): Because of greed

Why are so many people lured into getting on a bus to see land plots in Dong Nai and Binh Duong, even though they are suspicious or know for sure they will be scammed, still agree to pay money to sign a deposit contract or a land sale contract for a "ghost" project? There are even people who know all the tricks of real estate fraud through the media but still fall into the trap. This situation has been going on and on for many years.

Psychological blow

As someone who once followed a group of people who scammed people into selling land, Ms. Pham Khanh - living in Phu Nhuan District, Ho Chi Minh City - said that at first, she read online about the bank selling and liquidating cheap real estate, so she contacted them to find out. The person who posted the article asked her to come to a location in the old District 2 (now Thu Duc City) to see the real estate documents. When she arrived, she learned that this was the office of a real estate company, with many employees and customers also coming to see the real estate documents.

Here, the staff used the excuse that it was the weekend and the bank did not dare to present the documents, then tried to find ways to invite the group of customers to get in the waiting car to go see the cheap land project that was being opened for sale in Nhon Trach district, Dong Nai province. Although she was suspicious, Ms. Khanh still decided to follow to find out.

A "ghost" project in Lai Hung commune, Bau Bang district, Binh Phuoc province was once drawn up to be sold to hundreds of investors. Photo: THAO NGUYEN

On the bus, all the windows were closed, and the staff and customers were chatting animatedly about investment opportunities in the land they had bought and would buy. When they arrived, Ms. Khanh saw an empty plot of land with a roof and tables and chairs already set up.

Here, she and many other customers were treated very attentively. Some people, upon hearing about the land project, agreed to pay a deposit right away because they saw the low price and were also able to participate in a lucky draw to win valuable prizes. The staff kept urging Ms. Khanh to pay a deposit because the beautiful plots of land were almost sold out.

"I soberly know that among the customers, there are many "decoys", and there are also real customers who are trapped by tricks that appeal to greed and desire. Importantly, these people lack information and lose money, not because of any magic spells" - Ms. Khanh concluded.

Similarly, Mr. Tung, a retired official in Ho Chi Minh City, said that because he regularly reads newspapers and listens to the radio, he knows all the tricks of fraud. However, last June, a friend from the chess club invited him to see a project land in Dong Nai with a nephew as a broker, the price was only 600 - 700 million VND/plot, Mr. Tung still accepted to go to see the reality...

When the truck arrived, he saw an empty lot with cement pillars to divide about 10 plots of land. It is worth mentioning that this area is very far from residential areas, with no infrastructure such as roads, electricity or water. Knowing that he would be cheated, Mr. Tung decided not to buy despite the staff's attempts to entice him.

However, his friend and a few people who followed him were deceived because they believed the explanations such as this was a small project in a very large project or that the project when officially opened for sale would cost up to 2 billion VND/plot, this was sold to relatives and acquaintances so the price was so cheap. "I realized that if someone is not alert, it is very easy to be deceived, especially those who follow friends and relatives..." - Mr. Tung shared.

Consider carefully before deciding

Psychology Master Nguyen Thi Ngoc Giau, lecturer at Ho Chi Minh City University of Technology, said that people with money and the need to invest in real estate or other investment channels are easily attracted by advertisements and attractive offers.

Most small investors want to buy cheap, get big rewards, buy and resell to make quick profits, so they easily fall into the trap of experienced people or bad guys who specialize in using tricks or crowd effects to scam.

"In an unconscious crowd, people often act more emotionally than rationally. Because of the fear of missing out on opportunities, greed is pushed up, causing them to make decisions without enough time to learn. For example, people who are tricked into buying land often pay very quickly without thoroughly understanding the project's legality, as well as payment capacity and other related factors" - Master Giau analyzed.

An advertisement for cheap land and the actual land in Dong Nai, where the subjects organized a land sale event, inviting buyers to deposit. Photo: SON NHUNG

Lawyer Tran Quoc Bao, Viet Tin Bao Law Firm, said that real estate companies specializing in selling land in the provinces usually come in two forms. The first form is that they only have a few real products but use "decoys" to push the price many times higher and then entice buyers to pay. The second form is selling "ghost" project land - selling land in the wrong location, wrong area, not enough quantity and also not in accordance with the drawings they draw themselves to attract customers.

However, regardless of the form, the subjects often set up companies, then send employees to advertise and post information about cheap real estate for sale on social networks and real estate websites to attract people in need, then use many tricks to take them to see the land in the provinces. The ultimate goal is to sell the land or lure buyers to put down a deposit and then appropriate it.

According to lawyer Bao, to avoid falling into the trap, buyers need to be alert and refuse to go see cheap real estate in the province from the beginning. If they have already followed and discover something unusual, they must absolutely not buy, invest, deposit, reserve or do anything else, no matter how many tricks the subject uses.

"If you have agreed to buy land in a project, you need to clearly consider the legality of the project such as: has the project been approved for investment policy? Is there a 1/500 planning and has the investor fulfilled tax obligations? If these conditions are met, you need to continue to see if the actual project has full infrastructure? If not, there is not enough basis and conditions for sale. The buyer needs to firmly refuse. If the enterprise says the land has a certificate, you need to look at the location, sheet number, plot number, and the name of the landowner; in particular, the sales contract must be notarized and no money must be paid in advance" - lawyer Bao suggested.

In addition, those who want to buy land in a project must carefully research the business that sells the land. What is that business like, is it capable and reputable? "This information can be found on Google or consulted by local authorities and law firms. Don't be greedy for immediate profits and lose a large amount of money" - Mr. Bao warned.

According to Mr. Ta Trung Kien, Deputy General Director of the Big Land Fund Company, most current land projects are required to have red books, and buyers can notarize the transfer of ownership immediately. Projects that do not have asphalt roads, electricity systems, sewers, etc. are not eligible for sale.

To avoid being scammed, those who want to buy land in the province must carefully check the information on the contract, whether the land location matches or not, so as not to buy in one place and see the land in another. In addition, the land plot on the book must have a sheet number, plot number and be clearly stated in the deposit contract or sales contract... At the same time, you must carefully check the land area, otherwise it is easy to mistakenly buy low-value land or "ghost" project land.

(To be continued)

(*) See Lao Dong Newspaper from issue dated October 3

Want to invest must have knowledge

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that he has repeatedly warned about real estate scams, especially the situation of inviting people to visit project land in the province, but many people still fall into the trap. "Recently, the Dong Nai Provincial Police have taken strong action against Loc Phuc Company, which is very welcome. For the people, I think they must be alert, if they want to invest in real estate, they must have knowledge, understanding, do not be greedy for immediate profits, it will be easy to be deceived, leading to unfortunate consequences, not only losing money but also losing time and effort to complain and sue..." - Mr. Chau warned.

Source: https://nld.com.vn/kinh-te/du-chieu-lua-dao-bat-dong-san-vi-long-tham-ma-ra-20231003225139428.htm