Buying a home abroad should be the start of something wonderful – but for some, it becomes a nightmare. Overseas property scams are more common than many realise, and fraudsters are getting increasingly sophisticated. The good news? With the right support, you can avoid them.
Falling victim to a property scam is devastating – and it can happen to anyone. Fraudsters are highly skilled at making their schemes look convincing, especially when you’re caught up in the excitement of buying your dream home abroad. But most scams are much easier to avoid when you know what to look for. With a few key checks and the right guidance, you can protect your money and your plans.
8 overseas property scams you need to know about:
1. Fake agents and intermediaries
Some scammers pose as agents or lawyers, using cloned emails, official-looking websites or even spoofed phone numbers. They request deposits or fees for legal checks that never happen.
How to stay safe: Don’t rely on introductions made through social media, forums or marketplaces. Work only with vetted, recommended agents from trusted sources. Your Overseas Home only works with verified local partners.
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2. Hidden debts or charges
A property might look like a bargain – until you inherit local taxes, community fees or unpaid mortgages that weren’t disclosed up front. Some buyers have lost homes after discovering post-sale that the property had significant debts attached.
How to stay safe: Hire a lawyer who will carry out due diligence, including a full charges search. Avoid using the seller’s suggested legal representative.
3. Time-limited “tax or registration” scams
Buyers are sometimes told that they need to pay an urgent tax, notary or registration fee to secure their property or avoid losing it. These fees may seem plausible and are often accompanied by official-looking documents.
How to stay safe: Any legitimate tax or fee should be processed through your lawyer or the notary handling your purchase. Avoid sending payments outside of this chain.
4. Switch and trap fraud
This scam involves last-minute changes to payment details. You receive an email from your lawyer or agent with a new bank account number for the deposit. You send the funds, only to discover later that the email was a fake.
How to stay safe: Always verify new payment instructions by phone using a number you trust. Never click payment links in unsolicited emails.
Without the right guidance, anyone can fall victim to overseas property fraud
5. Too-good-to-be-true listings
You spot a property with an incredible view, at an unbelievable price. It’s on a reputable-looking website, and the listing says it’s urgent. But there’s a catch – the home doesn’t exist, or the seller has no right to sell it.
How to stay safe: Never send a deposit or agree to a viewing without verifying ownership through a local legal expert. Use a reputable website like Your Overseas Home to search for properties and connect with verified legal partners who will check land registry records for you.
6. Unregulated investment schemes
Holiday lets, off-plan resorts or retirement developments offering “guaranteed returns” might seem like smart investments. But some are fronts for Ponzi schemes or involve selling units that aren’t legally viable.
How to stay safe: Be sceptical of guaranteed rental yields. Ask for full planning permission and building licences and confirm that the developer holds clear title. Your Overseas Home can connect you with an independent legal expert who will investigate on your behalf.
7. Currency exchange cons
Some buyers fall prey to individuals posing as FX brokers who offer unbeatable rates. You transfer large sums, and the money disappears.
How to stay safe: Only use FCA-authorised currency providers with a strong track record. Smart Currency Exchange, the trusted partner of Your Overseas Home, offers secure, regulated transfers with dedicated support.
8. Rental deposit and sublet scams
Fraudsters sometimes advertise properties for short-term rent (especially in popular tourist areas) and request a deposit upfront. In reality, they have no right to rent the property – or it doesn’t exist at all.
How to stay safe: Never transfer a deposit without seeing the property in person or via a verified agent. Ask Your Overseas Home for recommended viewing trips and virtual tours from known agents.
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Mortgage mis-selling in Spain (2000–2016)
Between 2000 and 2016, thousands of mortgages issued in Spain included unfair terms that caused buyers to overpay. The European Court of Justice has ruled in favour of consumers, and Spanish courts are upholding these claims.
You may be able to reclaim those funds, even if your mortgage is fully paid or the property has been sold. Our trusted partners JLCA & AS can help, offering a no-win, no-fee service.
Summary
Overseas property scams are evolving, but that doesn’t mean you have to face the risk. With the right legal checks, trusted experts and practical support, your dream home abroad can become a safe, stress-free reality. Your Overseas Home is here to guide you every step of the way.
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