Frauds in real estate are very common. Fraudulent sellers cheat innocent customers of their hard earned money. So, you should be very careful while investing your hard earned money in a property. In this blog, we will be discussing some of the frauds which take place in real estate.
The most common method used by a seller to cheat innocent property buyers is by creating fake property documents. Fraudulent sellers create a property document which looks exactly like an original document. So, you must get the property documents verified and check whether it’s fake or real.
There are chances that the property which a buyer is planning to buy, is given on a general power of attorney (GPA) by the real owner. Granting a general power of attorney (GPA) to a property, may lead to a fraud because the property may be sold to different persons. In case the owner approves the general power of attorney to more than one person, these people can sell the property to someone else.
See Also: How To Avoid Property Fraud?
There are chances of fraudsters cheating buyers by selling government land. Fraudsters create an unauthorized layout vis-a-vis government land and sell it to innocent buyers. So, it is advisable to do proper research before buying a property. Make sure the property which is being sold to you by the owner is really owned by him.
There are chances of a seller, selling you an encroached property, which he had encroached upon. The seller will collect a good amount by selling you the property, but you will face problems when you get to know that you are not the rightful owner. In such a case it will be impossible for you to get your money back if the seller has escaped.
In some cases, the seller of the property mortgages his property with two different banks and sells it to an innocent buyer. The seller escapes after selling the property. But, the buyer will be in a trap and he has to struggle to get his money back.
In some cases, the buyer of a property will be handed over unreliable agreements. For example, buyer buys a 500 sq yard plot and pays money for it. But when it is actually measured, the plot size will be lesser than is mentioned in the agreement.