Buying a property is an important investment and most people put in their life savings in it. So, one should be cautious while making an investment in the real estate sector amid a lot of frauds being registered due to fake listings, fake documents, etc. Homebuyers, who become victims to such frauds by property dealers, face money loss and mental stress. Moreover, homebuyers who take a home loan from banks should pay EMIs, resulting in mental harassment and stress. How can one prevent such frauds and what should be done if a person becomes a victim to such frauds by property dealers? This guide gives you a detailed insight.
Check these tips to avoid being tricked by real estate agents while buying property
What kind of frauds a property dealer can do?
- Distort information
- Fake listings where a property dealer may hide information and defect areas or sell properties that are non-existent.
- Cause problems with respect to property documents, such as title. They may also hide information related to encumbrances with the property.
- Frauds with respect to money related to the property by offering bogus schemes.
- Property dealers can forge signatures to show transfer of property.
- Using fake identities to sell a property without the consent of the owner.
What to do if you are victim of frauds by property dealer?
- File a police complaint: Under section 420 of the Indian Penal Code (IPC), you can file a complaint in the police station nearby. Make sure you share all details of the fraud, such as the name of the dealer, details of the transaction, etc.
- File a civil case: One can file a civil case against the property dealer. Also, a homebuyer can file a case of discrepancy at the consumer court. In case the property dealer is found guilty, he will be ordered by the court to take corrective measures and compensate the homebuyer. There are chances that based on the evidence, the court may order the sale agreement to be revoked, and the seller will return the buyer’s token amount. The buyer will return the property to the seller.
How to prevent a property fraud from happening?
- Choose known property dealers: Do not choose an unknown property dealer. Go for a reputed firm which has a good track record. Infact, MahaRERA, the real estate regulatory authority of Maharashtra has made it mandatory for developers to only engage with certified MahaRERA agents.
- Due diligence: Do not depend on the property dealer and get the property documents verified separately for ownership records and clear titles, with the help of a lawyer.
- Check out for sweet deals: If you think the deal offered is too good to be true, then it may be a red flag for you. If prices are low, or property dealer showing urgency in closing the deal, or putting pressure on you, there must be something wrong in the deal. Note, property buying activity is time consuming and one should be calm throughout the process and avoid making any mistake.
- Payments should be made through secure channels: Always be transparent when you make payments. Make secure payments through cheque or bank transfer. Avoid cash transactions as these can’t be accounted and there can be tax-related issues arising out of such transactions.
Housing.com POV
Be very careful and ensure due diligence with the help of certified professionals like lawyers before proceeding with money transactions. Do not get tempted by the offers given by fly-by-night agents. There are many cases be registered, such as a recent one in which Bombay High Court has issued order to demolish an illegal building in Ghansoli, Navi Mumbai. So do not get trapped by putting money in projects that have not been approved.
If you have doubts in any such deal, stop immediately, check, and start taking corrective measures by lodging a complaint and taking help from legal experts.
FAQs
How to identify property frauds?
Check for sale deed, mother deed, encumbrance certificate, the cost of property among others to identify the property- related frauds.
What is the most important thing to do before buying a house?
Do a thorough due-diligence before buying a house. Get even the slightest of doubts cleared before making transaction.
Is it safe to approach any property dealer?
No. Only go for those property dealers who have reputation and have been in the field for a long time.
Should you opt for cash transactions when purchasing a property?
No. Avoid cash transactions and opt for cheque or bank transfer that get recorded.
Can you file a case with RERA for property frauds?
Depending on the details, you may file a case with the RERA of your state for property-related frauds. (Some states accept cases of projects that are not RERA registered.)
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
Email: anuradha.ramamirtham@housing.com
Related Posts
Agent/online/direct: Which is the best medium to buy a house?.
Everything real estate agents need to know about the RERA.
Who is a real estate broker?.
How to become a realtor?.
What to do if a builder sells the same property to multiple buyers?.
This IT Hub Took the Topmost Spot on Pune’s Property Sales Chart: Here Are More Insights.
