Property is one of the most meaningful purchases anyone makes in their life. In the current system, people purchase property for investment purposes for a safe future. One of the best options for investments is property which gives the highest returns over a long period. But the more people are interested in buying property, the more they fall into real estate scams. In this hustle of purchasing property, most people get fooled, and the money they invest is lost. To avoid these scams and frauds, one has to understand market analysis and other things carefully. Let’s take a look at the common kinds of property fraud and how to avoid them.
Fake Property Registration
Fake Property Registrations occur with both property creators and sellers. In this type of property fraud, a scammer will create property title papers and declare themself as the property owner. There have been several cases where scammers copied vacant or disputed property title deeds and sold them to buyers. The scammers usually target estates that are either vacant for a long time or whose owners aren't staying in the country. After creating the papers, they try to sell and convince easy buyers. The scammer is already gone along with the money when the scam is detected.
Another interpretation of title fraud is made by fake or fly-by-night developers or builders. In this, the builder sells the building that isn't their own. They will promise good returns on the property and offer free stuff to attract easy buyers. Due to high future returns, the buyers forgot to check on all the documents and became victims of a scam.
Bait and Switch
Bait and switch is a fraudulent sales method in which the buyers are attracted by an advertisement having a reasonable property that is pocket friendly. They feel encouraged to put their money in a property priced much higher than what has been shown in the ad. The protests linked with this project are mostly bonded to homes advertised for rent or sale. These kinds of scams have been happening around the internet for a long time. Complete diligence is required to avoid this dishonest and fake process. Ensure keeping an alert eye on such suspicious things in the online terrain. Ensure checking all the documents before purchasing any land to be safer. Review the reputation and track record of the estate builder, study the details of the property, including the possession details, and never hesitate to ask questions before purchasing any property.
Deviation from approved Plans
Deviation from the approved layout is one of the main issues encountered by buyers today. While a slight variation is proper due to inevitable technical or architectural problems, a customer should know that the limitation is up to -5% or +5% of the agreed plan. If the development power does not approve of the performance, the developer or builder will be under persistent threat in times of the demolition of that property. Thus, a buyer must raise the alarm in such cases and file a protest against the property creator due to unfair rules and fraud. Also, if the builder has deviated, the property buyer has the right to ask for compensation from the developer or builder. The amount may even rise to a specific portion of the cost of the project.
Project delays to force cancellations
A property builder might unnecessarily delay the realization of a project sold earlier at lower rates to force cancellations. It is done so that the builder can sell them again at higher speeds. It may also occur if the customer pays delayed Installments.
Section 11 subsection (5) of the RERA states that even though a builder of the property has every right to cancel the contract, it has to be done following the clauses and terms specified in the sale contract. Also, the Act says that the allottee can ask the power to pursue comfort if they are dissatisfied with the cancellation.
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Hidden property damage
You can also become a victim of hidden property damage scams. In this, the officer inspecting the property may knowingly perform a preliminary inspection without being equipped with proper inspection skills. However, the result is a report that misses damages or problems (intentionally or unintentionally) and the customer ends up purchasing a home with unexpected repairs.
Selling the same unit to Multiple buyers
It is the fraud that happens every day. Mainly the same flat is sold to different buyers, and then the builder disappears after selling the property.
Sometimes one person is the owner and the other one has the Power of attorney i.e. the property has been sold to two different owners, which causes chaos in the longer run.
Sometimes builders guarantee a return of up to 12- 14 percent up to the time of ownership on the immediate investment. Also, the builders provide post-dated reviews. The buyer thinks that the security is good, but the issue begins when the cheque starts to bounce. Not every developer or builder who provides it is scamming you. Most of the builders are good and give customers sound properties. But the buyer must stay alert from these scams.
Builders offer good discounts on quick purchases. Ownership contract commitments can be opposite to what happens in reality. So always keep an awareness of these kinds of estates offers.
Delays in the Ownership
Delays are the most familiar yet evident way to find out the happening of a real estate scam. After applying for the required money, the delay keeps on going for years and years. Delay of ownership happens not only happens to small real estate projects but also to big real estate projects. Before purchasing any estate, check the RERA website for more information. It always has an ownership date from which buyers can plan their investments.
While purchasing a property, it is necessary to do enough research about the market and other essential points. Fraudsters are clever, but you can be cleverer. One possibility is waiting for the plan to get more efficient in eliminating these offenses. Still, the other way is to stay safe by doing the research and other work properly! If you wish to purchase a property for investment and want to find essential property information, consulting with a property lawyer can be extremely beneficial. A property lawyer specializes in real estate law and can provide guidance and assistance throughout the property purchasing process, ensuring that your interests are protected and all legal requirements are met.