There is a new pitfall facing unwary overseas property buyers, and it comes in the shape of upfront fees. In the past year, I have been offered discounted properties in Costa Rica, Mexico, Bulgaria, Dubai, France, Spain, Cyprus, New Zealand, Hungary, Estonia, Barbados, and lastly the United States. Yes, that is overseas to me, based as I am, in Hampshire England.

Moreover, they all come with significant upfront fees, and guess what? Those upfront fees are non-returnable under any circumstances.

A new raft of companies has sprung up, and as far as I can see, they are totally unregulated. They specialise in offering what they call discounted properties. It works like this: they negotiate, so they say, a discount on the developer's properties. This can range from 10% to as much as 25% of recommended retail price, except no one would be so vulgar as to give a property, a recommended retail price.

So on a nice villa overlooking the ocean somewhere, which normally sells for 250,000, these kind companies will offer you that same villa at say, 200,000, giving you, in theory, an instant equity profit of 50,000. Of course, they don't do this for nothing. Typical upfront fees are 3%, which on this example would be 6,000. This is invariably payable upfront, and immediately, and it is non-returnable.

After you have paid, your application to buy the property is processed. Most people buy, utilising the on the spot local mortgages, but if for any reason they fail to offer the buyer a mortgage, the deal falls down dead, and guess what, the introducer has made a fat commission, and the buyer has made a fat loss.

Recently I wrote to four such companies offering these "unrefusable" deals, and asked them if for any reason the transaction was not completed, would my fees be refunded? I am still waiting for two of those companies to reply to me at all. So what does that say? While the other two, quite fairly told me that the fees would not be refunded, and there should not be any problems.

But there could be problems couldn't there? Firstly, we all know that sometimes buyers applying for mortgages in their own country are turned down. Imagine the additional difficulties that could be placed in the way when the transactions are being carried out, possibly in a foreign language, utilising a different legal system, imagine the extra snags that could occur then. And if these agents are taking their fat fee upfront, and it is non-returnable under any circumstances, are they really that bothered if the deal then falls down? They have their money, they are fine thanks.

And are these discounts true discounts? Quite coincidentally, my sister was travelling in the area where one of these developments was being hawked around by more than one of these property-introducing companies. She went and took a peep at the villas. And very nice they were too. High spec, nice location. Guess what? The villa that the property company had assured me was being discounted from 250,000 to 200,000, was in fact being offered on site to any member of Joe Public who strolled in for, yes you've guess it, 200,000.

So the buyers are sitting at home dreaming that they are buying bargains when in fact they are throwing fat fees straight out of the window, for no reason.

If you are looking to buy a home overseas, don't consider paying upfront introduction fees. It is as simple as that. What is that old maxim? If it looks too good to be true, it probably is. I am still looking for a second home overseas, but buying through third parties who charge a big upfront non-returnable fee? I don't think so.

David Carter