What is “Absconding” Within the Context of Real Estate?
In a real estate context, Absconding is the running away with clients money – usually with your deposit money.
An example is an illegal broker who accepts a deposit for a promised transaction but vanishes soon after with the deposits.
Examples of Absconding includes but is not limited to the examples given below:
Making away with the booking deposits or rental deposits
Asking for payments to be issued in their personal names.
Not paying back the deposit when a sale or tenancy is aborted for a legitimate reason.
How to Protect Yourself
Unfortunately, it is seldom easy or even viable to relocate absconded brokersw. Keep in mind that if you have been the victim of fraud you are unlikely to meet him again, therefore prevention is better than cure.
Every negotiator works for a real estate firm, who are certified and can be recognized by the Tag issued by the Board. As always, only deal with certified negotiators.
The Real Estate Firm are allowed by law to act as a stakeholder for all monies collected. They must be deposited into the firms “client’s account”. All clients account are insured by a professional indemnity insurance.
Issues your deposit payments by cheque only under the name of the real estate firms clients account only.