Scammers targeting property buyers
Platinum Weekly newspaper – SA | The South African Institute of Auctioneers (SAIA) is urging prospective property buyers to verify the credentials of auctioneers and property professionals before committing to a purchase or transferring money.
This follows a property auction scam in the North West in which a buyer allegedly lost more than R200,000 responding to an advertisement for the auction of a house in Klerksdorp. After making contact using the number provided the buyer had received documentation and was instructed to pay a R23,000 deposit. She subsequently paid the outstanding amount including supposed legal fees which bought the total payment to more than R200, 000.
According to SAIA chief operations officer, Sonja Styger, the buyer was allegedly told that the property would be registered in her name within approximately 10 days. Shortly after when not able to contact the people involved the buyer had visited the premises and discovered that the offices did not exist. A suspect was subsequently arrested and appeared in court on fraud charges.
“Scammers are cloning websites and information of real auction companies and using professional-looking advertisements and official-looking documents which can fool people into believing that an auction or property transaction is legitimate. That is why it is important to establish the identity of the auction company and the individual conducting the sale.
“Rather than making a mistake we advise potential buyers to check whether an auctioneer is a SAIA member by consulting our public directory at www.auctioneering.co.za or contact SAIA directly to establish the company’s status before proceeding. Also confirm that the property practitioner has a valid Property Fidelity Fund Certificate (FFC) with the Property Practitioners Regulating Authority (PRRA).
“Most importantly, an auctioneer will never accept a deposit to hold it for the buyer and this should be the first clue that a buyer is about to be scammed. If you are not required to participate in an auction process either physically or online then it is a scam. You should also be given the chance to view the property beforehand and feel comfortable that the information being shared is true and legitimate. If its sounds too good to be true it probably is,” says Styger.
In addition, she explains that buyers should confirm that the auctioneer has authority to sell the property, verify the identity of the seller and establish the terms and conditions of the auction. Buyers should also verify the agents (property practitioner’s) professional credentials with the Property Practitioners Regulatory Authority (PPRA).
Banking details must be checked directly with the legitimate auction company using contact information obtained independently rather than relying solely on details supplied in an advertisement. Buyers should also ensure that invoices identify the correct company and that the beneficiary details match those independently confirmed by the company.
Styger also advises buyers to be cautious of pressure to make immediate payments to bypass the advertised auction process, as well as avoiding the payment of unexplained legal or administrative fees. Although a deposit may form part of the legitimate registration or bidding process at an auction it should never imply that a bid will be successful or that the sale is guaranteed. “A payment is not genuine simply because it is described as a deposit or is accompanied by an invoice.”
Anyone who suspects that an auction advertisement or property transaction may be fraudulent should stop the payment process contact the purported auction company through independently verified channels and report the matter to SAIA and the relevant authorities. If money has already been transferred the buyer should contact their bank immediately and report the incident to the police.
“SAIA encourages the public to take the time to verify the agents (property practitioner’s) and businesses they deal with before committing their money. A few checks before making payment can help prevent substantial financial losses,” Styger concludes.
SAIA press release, 20 October 2026
