IN current scenario people are buying the property as there investment in the hope of a better future Types of Property frauds & scams in Indian Real estate Investing.
This investment would be helping the investor to gain some profit. So for Investment, the best option is Real Estate which gives the highest return in the long term.
But Real Estate investing is done on the basis of the market analysis. This analysis is done by Investor itself or by somebody else.
In this rush of buying property, most people get cheated and the money invested by them is lost.
So to avoid this kind of loss please read the below blog and subscribe to our blog. Hookfish will always keep you updated with rules and regulation of real estate for your better future.
Let see the types of Frauds & scams one by one which happens while buying any type of property.
List of Frauds and Scams in Real Estate:
1. Title Deception –
Title fraud is the scenario where the ownership of property is not clear.
Flats: A person makes a Duplicate paper of properties, On his/her name which not belongs to them and then sell it to others.
OR
He/she claims themselves as POA holders and try to sell properties.
Types of properties which are sold under Title fraud :
1. The properties which have been unoccupied for a long time.
2. Showing properties as there who’s owner are in abroad.
3. Properties which are been having some disputes, or some lease which is not cleared and many other dues which would be pending from a long time.
Under construction properties:
1. Developer sells the property which not on the exact location which is been shown or properties which not belongs to them.
2. Sometimes the layout is been displayed by developers then he raises the money by people and then he buys a particular property.
3. Land mortgage fraud where developers have a mortgage on land and developer is offering that land to you.
4. Change of use of land not approved.
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Also read – Property Valuation | Know the real price of property before Investing | Hookfish.in
2. Hurried sales –
Developers show that there are only a few flats lefts so buy it now and people buy it in a hurry without research on it on price which is very high.
This type of fake hype is created by developers to hid the facts and reality of projects to push sales.
During the paperwork buyer would be in a hurry and many things will be hidden.
3. Assured returns –
Developers would be providing the assured return up to 12 to 14 percent return till the time of possession ON IMMEDIATE INVESTMENT.
And even developers would be offering post dated checks you might be thinking this kind of assurance is good but problems start when the Check start to bounce.
we are not saying that all the Developers which offer this kind of policy are in the mood of cheating. Most of the developers are good and they definitely give good properties to buyers.
4. Delays in Possession –
Delays are the most common way from which fraud happens here once you invested the money in a project and possession of it been delayed for years of years.
Delay of possession not only occurs in small projects but also in big brands.
So this is the most common way of frauds which occurs during the property investment.
Before buying any property in always check the RERA website it always has possession date from which you can plan about your investment.
you are reading – Types of Property frauds & scams in Indian Real estate Investing
5. Fake promises –
Developers or builders will offer heavy discount on immediate investment.
Possession assurance promises which will be totally opposite to what appears in reality.
Buyback offers if possession not given, offering promises like penalty will be paid on a late possession.
So always beware of this kind of projects which are totally different in front and different on papers.
6. Forced Cancellations –
People who had invested in the project at initial days and they have promised a unit in less amount. Later when property rates are high compared to the previous rates developers would be trying to cancel all units which were sold previously in low rates just to gain more and more profits.
This could happen in case of late installment payment by buyers or builder will delay projects date due to which old investor will cancel their units and will take their money back.
The same units will be then sold another buyer at high price.
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7. Selling without authorization –
Change of land use (CLU) approval is not been taken by developers knowing that developers would be selling properties so always check CLU or building approval before property investing.
THE PRE SCHEME – Where people are offered a 20% discount on immediate investment without even having any kind of approval on construction.
Also read – How to invest in Mumbai Real Estate
8. Change in plans –
Builders would not provide exact interiors which mentioned earlier in terms of electrical equipment or ceramics etc.
Carpet area would differ from what shown or look of the unit would be not the same which has been presented at the time of sale to you.
9. Selling the same unit to Multiple buyers –
The fraud which you will have definitely heard of this fraud happens every here and there. Mostly every time the same flat is sold to multiple people and the owner runs away.
OR
These could happen one is the owner of the property and another member has PoA power so both have sold the property by somehow to two different entities so again conflict occurred and you would face some kind of problems.
10.Encroachments –
Illegal possession is taken by someone else due to in activeness of the owner on this land or Someone has acquired a small part of your land illegally.
Many times even government property are been sold to people which they come to later.
Tips to avoid Real estate Frauds.
1. Check developers track record
Always go through the track record of the developer. See within how many developers completed the last project when they allocated the units to people.
Brand value of any project, what kind of approach developer had taken to complete the project if they had any problems.
Talk to the investor who had invested in the initial days of the project where you want to invest
2. Go in Details
Always go in details of any project, Try to get every minute detail of any projects.
Check ownership (Title) of any property before buying, also try to collect the history of property whether it’s in any dispute.
Go to the details of approvals which kind of approvals is been given to property where you are planning to invest.
First priority before investing in any property see the project is been registered with RERA.
RERA plays an important role in Real estate and on RERA website see every detail of the project and possession dates.
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3. Keep calm and buy a property
Always keep yourself calm before buying any project No need to hurry there are a hell lot of different projects in real estate.
Real estate investing is not done on a daily basis it is a one-time investment for some people.
Real Estate property fraud and real estate scams are most common these days.
This occurs mostly because of Lack of information and knowledge.
Read the agreement paper understand all the rules and regulation in deep with the effect of it in upcoming days.
4. Always hire professionals or Take the advice of Hookfish
Always consult to experts like Hookfish who will show the way of investing in real estate Mumbai or residential properties in Mumbai.
Take the advice of legal advisors, lawyers, etc.
Also read this – Did “ Acche Din ” came for Real Estate sector in India ?
5. Prefer Paper’s
Always take promises in writing because after investment you would be provided with particular terms which were previously told to you.
So prefer everything in writing this could act as evidence if any problem occurs in the future.
So these where some scams and frauds which can happen with you so beware about it.
Always read the blogs like – new homes for sale and how to invest in property
you were reading – Types of Property frauds & scams in Indian Real estate Investing
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