The Top 5 Types of Frauds in Real Estate – How Can You Avoid Them?

No matter what you’ve been made to believe, real estate investment in India can be tricky. Even with so many laws and regulations, fraudsters still manage to rob buyers of their hard-earned money.The increasing rate of real estate fraud in India is alarming, especially for the new investors who may not be familiar with the various techniques fraudsters use. As a result, people lose money and more importantly, peace of mind. But you, as a conscious investor can preserve both by knowing the common types of frauds in real estate.

So if you’re about to make a transaction, here are the top 5 most dangerous real estate frauds happening in India today that you should be aware of. So, there are some of the following mistakes to avoid when buying a home specially when the process is going through broker. 

1. Deception In Title

Title deception is among the most occurring real estate scams in India where the fraudsters sell a property which has some dispute or the other, such as a mortgage on them that the buyer is not aware of.
Often multiple buyers pay token money (at times huge amounts) for the same property. And by the time they realize that they have been scammed, it is too late.

2. Misleading Promises By The Builder

Buyers are often made promises that turn out to be false, and that is certainly among the most noticed types of fraud in real estate. For instance, you might be deceived into investing in a given property by the builder by his promise of a huge return.
Or he might lure you in by offering a great discount if you invest promptly.

3. Delay in Possession

Real estate frauds in India often take place in the form of delays in possession. The buyer gets their property years later than the promised date and usually, there is some legal complexity involved with the property too.

4. Forced Cancellation of Property

There are times when a buyer invests in a property at a given rate, and things seem to be fine until they aren’t. The builders will delay the project and when the value of the property increases, they attempt to cancel the prior bookings to resell the same property at a higher price.Various buyers have fallen prey to such real estate scams in India since they had no way of ascertaining the true intent of the builder/developer concerned.

5. Excuses Regarding Property Papers and Tours

Real estate is prone to fraudulent activities, especially regarding the ownership of property. And among the types of frauds in real estate is one where the buyer is not allowed to access such documents of ownership.
Also, the builders in such cases often create excuses when the buyer wants to visit the property physically. And if they keep up this charade long enough, an innocent buyer would likely get trapped.

How Can You Steer Clear Of the Various Types of Frauds in Real Estate?

• Consider Taking Legal Assistance

Buyers are more likely to fall into real estate scams in India as soon as the fraudulent builder realizes that they are lacking in legal knowledge.
Taking legal counsel from a lawyer is the easiest way to avoid getting scammed when investing in real estate. He/she can help you identify fake real estate agents and also help you avoid and manage any legal complexity that might arise later.

• Take a Breath Before Making a Decision

Real estate frauds happen most when the buyer is in a hurry. The builder utilizes this opportunity to quickly sell them a disputed property or take huge token money.
So the best way to avoid fraud is to take things slowly, and never let a builder smell your desperation of buying a property. And make sure you take some time to think, rather than making a transaction on a whim.

• Evaluate The Builder’s Trustworthiness

With so many real estate agents, it may seem difficult to choose the most reliable one. However, you can know how trustable the builder you are in touch with is by checking their track record.If they are an experienced lot and have indeed delivered on their promises, you may have made the right choice. But yet, don’t forget to gather more information about them.The easiest way to do so is to talk to the owners of the projects that they have completed already.

Kamal Associates is a trusted property agent in Delhi that believes in customer satisfaction and honest business practices.We’ve helped numerous buyers avoid the many types of frauds in real estate and to find their dream property. Enlist our assistance for the right real estate investment.