As the real estate sector is rapidly growing, the frauds associated with it are also increasing. Even though you are updated about the day to day happenings around you, it is difficult to identify frauds in real estate. In this blog, we will discuss some real estate scams.
In case of title fraud, scamsters create fake title deeds and pretend to be the owners of the property. Title fraud is usually done on a disputed property, property which is vacant for a long time or whose owner stays out of the country for a long time. The scamster after creating the fake title deeds, sells the property to innocent buyers. By the time the buyer gets to know he is cheated, the fraudster would have disappeared.
Whenever you buy a property, it is advisable to hire a legal advisor, to discuss all property related documents with him.
Many builders publish fake rental listings on the internet and promise fixed rental income from the property. Buyers think that they get handsome rental income from the property and buy the property without doing proper research. Buyers then find it difficult to rent out the property, after receiving possession.
You must always do proper research on the property before investing your hard earned money.
In case of this fraud, fraudsters take advantage of homeowners who want to repay their Loan against Property. For instance, if you have taken a loan against property and are trying hard to repay it, fraudsters take advantage and promise lower monthly payment and a consolidation loan, in exchange for an upfront fee. They also ask you to transfer the property title to a new lender. After some days, the fraudster will sell the property without your knowledge and keep the money paid by you for himself.
The Indian real estate sector is growing, and so are the scams and frauds associated with it. Consumers now-a-days are more informed, but ironically still susceptible to scams. Real estate scams run the entire gamut, from legal frauds and fly-by-night operators to false promises and untenable buy-one-get-something-free offers.