Fake flat seller runs away with nearly $3m

An alleged swindler used a fake Hong Kong identity card to sell an almost new flat which he did not own at Festival City in Tai Wai and made off with the HK$2.92 million deposit.

The buyer's law firm involved with the deal initially filed a police complaint.

The seller apparently managed to go through the lawyer, Centaline Property Agency and the buyer using his fake ID, without getting caught.

Later, the real-estate agency filed a separate complaint. Police listed the incident as a case of deception.

The seller is believed to have collected the flat owner's name, ID card number and a sample of his signature from the Land Registry records to produce an ID.

The swindler then used the card to open a bank account and listed the flat at Centaline Property. The swindler said the flat was currently being rented so potential buyers could not visit it.

The low asking price made it easy to attract buyers. After some negotiations, a buyer reported to be a resident at Sun Hing Garden, Tai Po agreed to a HK$9.2 million deal 10 percent below the price of similar units.

The swindler was then able to go through the sales and purchase procedure with the real estate agents and lawyers without exposing his fake identity.

In signing one of the sales and purchase contracts, the swindler told staff from the law firm he forgot to bring his ID card but would send them a copy through his phone.

The buyer handed over three checks worth HK$2.92 million as deposit in January. The swindler then disappeared.

The buyer's law firm found out about the scam during the verification of the property deeds.

Vitus Leung Wing-hang, a solicitor, said if a law firm and real estate agents fail to catch a fake, it may be a case of negligence.

The Estate Agents Authority said, if necessary, agents can ask for additional proof of identity and ownership such as public utilities bills. Louis Chan Wing-kit, Centaline Property Asia-Pacific residential chief executive officer, said police are investigating the case.

If Centaline Property is responsible, the company is willing to make compensation, Chan said.

Source: The Standard