Learn to tell a genuine broker from a fraudster

Fraudsters are almost everywhere. The real estate industry in Uganda is not an exception. Over the years, there have been a number of real estate companies that have cropped up.
Some have however, been looked at as companies with fraudsters behind them. Many, without knowing exactly the intentions of people they are dealing with, have ended up being victims of fraud in the industry.
Peter Mwesigwa*, a resident in Mutungo, a Kampala suburb, early this year found himself being a victim of fraud. While narrating to this newspaper said that the “so called” broker disguised as an agent with one of the property agents in Uganda.

Mwesigwa was looking for an apartment to rent and within no time he had gotten in touch with Ronald Kintu*, who he thought would help him get what he wanted and thereafter pay him off depending on what they will have agreed on.
He paid off the broker Shs100,000, which was brokerage fee and after being convinced by the broker that the apartment was in waiting for someone to settle in, he paid him Shs750,000 that catered for the first three months of his rent. Mwesigwa came to learn a day after that he had been conned.

Many find themselves in Mwesigwa’s situation while searching for an apartment, land or any other tangible property to buy or rent.
If one can easily differentiate between a genuine broker and a fraudster, then it can be easy to avoid being a victim of fraud. That said, how can one differentiate a genuine broker from a fraudster?

Before getting a broker
Before one gets in touch with a broker, Daniel Kizito, a land and property broker with Sema properties, says it is important to consult people they are close to.
With this done, he says, there is a likelihood that people one is close to could actually be knowing an apartment or property that is available thus avoiding finding themselves being victims of fraud.

Referral from friends
He also adds that: “There is an option of one finding out a genuine broker through friends. One who has been used before and is trusted.”
Kizito also says this is one of the safest ways of avoiding fraud since very few of the “so-called” real estate agents are registered meaning that most could be working outside the laws and regulations of the industry.

Real estate association
Additionally, Kizito also says it is important for one to crosscheck with the Association for Real Estate Agents-Uganda [AREA-Uganda] registered real estate agents.
“There is a high possibility that real estate agents registered with the governing association are actually genuine,” he says.
Paul Mwine, a real estate agent with Association for Real Estate Agents—Uganda says: “It advisable for one to do a background check on the brokers they are using to buy land or property,” he says. After this, he adds, one also has to get to know the actual land owners.
“One has to do thorough investigations to make sure that the land/property they are buying from a person is not co-owned by any other person and it exists,” says Mwine.

Written agreement
As already stated, sometimes it can be quite difficult to know whether a broker is genuine or not.
Mwine advises that when dealing with any broker, it is important that a written agreement is done. This, he says, can help one have sufficient evidence in case things go wrong along the way.

Incase of fraud
Incase you are conned, Peter Jogo Tabu, a lawyer with Jogo Tabu and company advocates, advises that it is better if you involve authorities. “Any issue regarding fraud needs one to involve the authorities like police,” he says. “You can even go ahead and sue in the courts of law,” he adds.

Tabu also says the issue can also be settled out of court if both parties are okay with it. “Not that everything that goes on has to end up in court. Some issues can actually be settled out of the courts of law,” he says. He however emphasises that much as something can be settled out of court whatever is agreed on between the two parties has to be put in writing with the presence of their lawyers. Not doing so, he says, may end up leading to breach of agreement.

*Not real name

[email protected]