HomeUncategorized Property Transaction Scams: Risks, Examples and How to Protect Yourself

Property Transaction Scams: Risks, Examples and How to Protect Yourself

July 2025

In today’s increasingly digital and fast-paced real estate market, property transaction scams are becoming more sophisticated and harder to detect. At TierONE Capital, we believe that education and proactive risk management are the best defences for both individual property buyers, and mortgage fund investors. Below, we explore common scams in the property sector, the associated risks, and what you can do to mitigate them.

Common Property Scams

  • Email payment redirection (vendor/buyer payment interception): Scammers hack into the email accounts of real estate agents or conveyancers and intercept settlement instructions. The buyer receives a falsified email directing funds to a fraudulent bank account. This article from ABC News highlights an example of this type of scam: Gold Coast Property Scam.
  • Title fraud: Scammers obtain personal identification documents and forge ownership transfers, mortgages, or even sell property they do not legally own.
  • Off-the-plan and overseas investment scams: Some scammers offer high-return property deals, often overseas or off-the-plan, with glossy brochures and professional-looking websites. These often don’t exist, are heavily overpriced, or lack proper planning approval.

How Buyers Can Mitigate Property Scams

  • Verify all payment instructions: Always confirm payment details over the phone using known contact numbers and never rely solely on email instructions for financial transfers.
  • Use reputable conveyancers and solicitors: Choose firms that use secure client portals and multi-factor authentication.
  • Secure your email: Use strong passwords and multi-factor authentication for all communications.
  • Monitor property titles: Property owners can register with land title offices and receive alerts when changes to title occur.
  • Perform due diligence on developers: Ensure the developer is registered, has planning approval, and has delivered previous projects.

Risks and Mitigations for Mortgage Funds like TierONE Capital

At TierONE Capital, we manage mortgage investments that are ultimately secured by real property. While property scams often target buyers and owners, they also pose systemic risks to mortgage funds.

TierONE Capital has dedicated and active compliance and technology teams to manage risks. Some of the methods we use to stay protected include:

  • Secure investor portal: Access to the TierONE Capital Investor Portal for investment opportunities, pledges, and fund transfers is secured by processes and systems, and strict internal controls around fund transfers and investor instructions.
  • Fraudulent development proposals: Our Property Services Team review all building approvals and contracts, and closely assesses the capability of developers and builders.
  • Legal review: All mortgages and documentation are vetted by qualified lawyers before execution. Additionally, TierONE Capital’s Compliance Team ensures all investors and borrowers are screened under our AML/CTF framework, and all transactions are subject to rigorous internal approvals and monitoring.
  • Controlled fund disbursements: Loan drawdowns are only executed with the approval of our Property Services Team and a Quantity Surveyor’s verification.
  • Title monitoring: We maintain active oversight of title status and enforce mortgage registration prior to loan funding.

Whether you’re purchasing your first home, or investing through a mortgage fund like TierONE Capital, being alert to property transaction scams is essential. Never rush, and always ensure you are working with trusted professionals.

At TierONE Capital, we prioritise investor protection through robust systems, experienced personnel, and strong legal and cyber safeguards. If you’d like to learn more about how we protect your investments, or report suspicious property-related activity, contact us directly at info@tieronecapital.com.au, 1800 287 346 or lodge an enquiry through our website here.

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TierONE Capital investments are only offered to sophisticated investors as defined by s.761GA of the Corporations Act 2001 (Cth) and wholesale clients as defined by 761G of the Corporations Act, and other investors to whom a disclosure document is not required to be given pursuant to Pt 7.1 of the Corporations Act.

This article has been prepared for information purposes only and has been prepared without taking account of any person's objectives, financial situation or needs. You should, before acting on this information, consider its appropriateness, having regard to your own objectives, financial situation and needs. You should consult a professional investment adviser before making any decision regarding a financial product.

The TierONE Capital Mortgage Fund (the Fund) Information Memorandum, and any appropriate Supplementary Information Memorandum, should be read before making an investment decision in relation to the Fund. These documents will contain important information about the risks, costs and fees associated with an investment.

AUS Finance Group Pty Ltd (ACN 168 482 433) is the trustee of the Fund. Tier One Capital Pty Ltd (ACN 619 800 752) is the investment manager of the Fund and an authorised representative (AR001279013) of AUS Finance Group Pty Ltd (AFSL 470573). Neither the trustee or the investment manager guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this article.

Past performance is not a reliable indicator of future performance. TierONE Capital loans are limited to business and/or investment purposes only, and the consumer credit protections under the National Consumer Credit Protection Act 2009 do not apply.