When buying a flat in any city, it’s essential to be aware of potential frauds to protect yourself from financial loss and legal complications. If you think that you have been a victim of a real estate fraud, you should contact the police and file a complaint. You should also contact the Real Estate Regulatory Authority (RERA) in your state and file a complaint.
Also, if you are not aware of the property market of an area, it is also important to engage a reliable real estate lawyer and conduct thorough due diligence before finalising any property purchase. They can help identify and mitigate potential risks or frauds associated with buying a flat in India.
Also Read: Delhi-NCR Residential Sales 10-Year High, Is This The Right Time To Buy Property?
Here are some common frauds to watch out for:
Fake or Unapproved Projects: Developers may advertise projects that do not exist or misrepresent their approval status. Always verify the project’s legitimacy by checking the developer’s reputation, confirming necessary permissions from local authorities, RERA and visiting the actual site.
Illegal Floor Area: Developers sometimes inflate the square footage of flats to charge higher prices. Before finalising a purchase, carefully measure the flat’s dimensions or hire a professional to ensure accuracy.
Also Read: Real Estate: Tier 2 and 3 Cities Becoming Hotspots for Homebuyers
Title Fraud: Ensure the seller possesses a clear and marketable title to the property. Conduct a thorough title search and obtain legal opinions to ensure there are no encumbrances, disputes, or pending litigation that could affect your ownership rights.
Fake Documents: Some fraudsters create counterfeit documents, such as sale agreements, receipts, or occupancy certificates, to deceive buyers. Always verify the authenticity of the documents by consulting legal experts or conducting due diligence.
Black Money Transactions: Cash transactions involving undisclosed or “black” money are illegal and can result in severe consequences for both parties. Ensure that your payment is made through legal banking channels and properly documented to avoid legal issues or future disputes.
False promises: This type of fraud occurs when the builder or agent makes false promises to the buyer, such as promising that the property will be ready by a certain date, or that the property will have certain amenities. If the builder or agent does not fulfil their promises, the buyer may have no recourse.
Under-construction property fraud: This type of fraud occurs when the builder or agent sells a property that is still under construction. In some cases, the builder may never complete the construction of the property, or the property may be completed but not to the standards that were promised to the buyer.
Delayed possession: This type of fraud occurs when the builder delays the possession of the property to the buyer. This can happen for a number of reasons, such as financial problems with the builder, or delays in getting approvals from the government.
Fly-by-night builders: This type of fraud occurs when the builder disappears after taking the money from the buyers. This can happen if the builder is not financially sound, or if the builder is simply trying to scam the buyers.
Here are some tips to avoid these frauds:
Do your research before buying a property. Check the background of the builder or agent, and make sure that they have a good reputation. Get all the relevant documents from the seller, such as the title deed, the building plan, and the approvals from the government.
Have a lawyer review all the documents before you sign any contracts. Pay the money through a secure mode, such as a bank transfer. Also, be wary of any deals that seem too good to be true.
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