Real estate is a huge industry, and a lot of money circulates here. People in this sector are willing to earn money through malicious practices, including real estate fraud. It is your sole duty to ensure that your money is in safe hands. Property frauds are not an uncommon thing in India.
You can be misguided or get trapped in property fraud in several ways. Awareness during dealing and monetary transactions can protect from real estate fraud. There are multiple ways through which you can be cheated. Forged documentation, false project promises, dual lease, and wrong pricing are just a few. It is crucial for buyers to keep a check while buying property in Jodhpur.
We are here to spread awareness about types of fraud in real estate in Jodhpur. We will share information about documents, types of property fraud, and tips to avoid them.
Major Types of Property Frauds in Jodhpur
1. Title Duplicity
It is a very common property scam that is happening these days. The motive is to make extra money from a single property. The seller creates fake documentation and sells a single property to multiple people. Here the sellers are not well aware of the documentation and fell prey to this malpractice.
Sometimes a fraudulent personality uses fake documents to take over a power of attorney. Then he sells the property without the owner’s consent. The majority of the properties under title duplicity are disputed. So it is always important to check properties’ real ownership and government status before buying them.
2. Hasten Sale and Contracts
Many times builders and contractors make fake statements to sell unsold properties. The most common thing they say is that only a few limited plots are available. The number of people interested in buying a particular property is very high. So making any delay in the payment will lose you the property.
However, such statements are mostly not true. They are indented to manipulate buyers’ minds, so they hurry to buy the property.
In such cases, the buyer suffers a huge financial loss as the property price is overhyped. They pay more than the actual valuation of that property.
3. Fake Promises
At the time of purchase, the builder makes many fake promises. They provide a list and blueprint model of the aspired project. In that model, they showcase many attractive facilities and amenities. The buyer gets attracted towards these mouth promises and invests their money in property.
However, during possession and project competition, people do not get all the promised facilities. When they ask the builders about those promises, they say they have not documented these facilities anywhere. Buyers are left with no document to prove their allegations. This is a compromising situation where buyers have no option other than to accept the property.
4. Unprecedented Change in Valuation
During the introduction of a project, people invest in it for low prices. But as the demand rise, so the prices surge. The buyers who have invested a part of their money in these projects have to pay much higher than the proposed prices. Failing to do so, the builders ask them to cancel their bookings.
If the investors do not cancel the booking, builders try other bad practices to harness their interests. This is a very common property fraud in multistory buildings and apartment projects.
5. Selling unapproved properties
Agents and real estate builders propose a project. They have not received any approval from the government. Then also they start to sell the units or land to people. Later, when the builders fail to get approvals, they run away with the money. As a result, the buyers get a loss of their hard-earned money. Then they can only file cases against the builders in court.
Every buyer must see some essential papers carefully while buying any immovable possession. Here is the checklist of documents:
- Sale Deed – It states the name and identity of the person you want to purchase the property from.
- RERA Authorization – This certifies that the government has cleared the project and it is a genuine project.
- Mother’s Deed – It is proof that you are the current owner of that property. You cannot sell a certificate without a mother’s deed.
- Occupancy Certifications – This states that a government inspector has checked the building. It has cleared all the quality checks and is safe for occupants.
- Clearance Certificate – This document shows that there is no financial liability on the property, and the property is not been leased to another person.
- Power of Attorney – This document gives you all the authority to sell and purchase the property.
Tips to Avoid Real Estate Frauds in India
Scamsters in the market keep a close watch on their potential prey. Luckily there are ways to protect yourself from these property-buying scams. Knowing some important tips can help you become more aware of scams.
Deal with Reputed and Trusted Companies:
While putting in such a large sum of your lifetime earnings, it is good to deal with a trusted partner. Deal with reputed agencies with a good track record and have a satisfied customer base. Avoid getting trapped by fugitive attractive schemes and policies.
Avoid Sharing Crucial Information:
Do not share personal information with any firm, including your financial information. Brokers or agents do not need your personal and financial information to make any dealings.
Only do Authorized Transaction:
Do all transactions legally. Avoid any cash transaction as it is very difficult to keep account of cash transactions. Send money through bank transfers, as you will get transaction statements.
Avoid Pre-Deal Brokerages:
Nobody has the authority to ask for any fee or money from you. Pay only the fixed brokerage amount after finalizing the deal.
Do Not Rush:
Avoid making any deal in hurry-burry. Agreeing to everything without reading and knowing the proper will surely land you trouble. Take your time, think about your decisions, talk with your financial advisors, do market research thoroughly and then only finalize your decisions.
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