Property fraud can leave a sour taste in anyone’s property buying experience. Unfortunately, in heavily disorganized markets like India, they are common.
Therefore here are some common property fraud tactics to look out for and then some tips that can help you avoid the same. Let’s take a look:
1. Title Fraud
Title fraud is when who is the owner of the property is deliberately made unclear.
This can happen when you are buying second-hand property from someone and they make duplicate papers with their name on the property when in reality the papers are not in their name.
This can happen when a person wants to sell a property that is not theirs.
This can also happen when a developer aims to sell a property which is not being built by them as a way to cheat innocent customers. Another situation is when the building is built by a developer but the land it is being built on doesn’t legally belong to them.
2. Offering Assured Returns
Many-a-times developers say that they will offer assured returns of up to 12-14% on the time of possession if one invests immediately.
Make sure that there is a legal binding to this because otherwise, developers can opt-out of this promise. They may also offer post-dated cheques with the return but make sure you are purchasing from a reputed developer otherwise the cheques may bounce.
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3. Being Forced To Cancel
Property rates grow overtime. So a lot of initial buyers will get the same place at a much cheaper rate when compared to those who buy it 2-3 years later. So if you are someone who has bought the property at a cheaper rate than it is now beware.
The developer may compel you to cancel your booking so that they can sell their property to a new buyer at this higher price.
The ways the developer can get you to cancel is by delaying possession, unnecessary harassment and more. So make sure all terms are determined before purchase.
4. Delays in Possession
This is the most common type of fraud in India. Delay of possession not only occurs in small projects but is also done by larger companies.
Delays in possession can happen is the developer is in some legal trouble, does not have enough funds to build the amenities promised etc
But how does one avoid these types of frauds? Here are some quick tips so that you can stay alert.
- Always check the RERA website and check for the project. Important details like the possession timeline can be found here so that your home acquisition doesn’t get delayed.
- Always take any sort of assurance/ promise in writing or official documents that are signed by both parties to avoid later challenges.
- Always check details such as ownership title, price inclusions etc in detail before signing any agreement.
And that is it. These are some common experiences in India and some tips to avoid the same. We hope this blog helps you in your property buying journey.