by admin
March 16, 2025
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02 Mins

How to Deal with Real Estate Scams & Fraud?

The real estate sector is one of the most lucrative yet vulnerable industries when it comes to fraud and scams. If you’re planning to invest in property, it’s crucial to be aware of potential scams and ways to protect yourself.

Common Real Estate Scams

✔ Title Fraud: Fraudsters sell properties using fake documents.
✔ Pre-launch Project Scam: Builders collect money for projects that never get completed.
✔ Rental Fraud: Fake landlords take deposits for non-existent rentals.
✔ Fake Listings & Overpricing: Brokers list fake properties at high prices to lure buyers.
✔ Loan Approval Fraud: Fraudulent agents promise loan approvals for a hefty fee.
✔ Delayed Possession Scam: Builders collect 100% payment but delay possession indefinitely.
✔ Illegal Land Sales: Selling government land or disputed property.
✔ Ponzi Property Schemes: Fake investment firms promise unrealistic returns.

How to Verify a Property Before Buying?

✔ Check RERA Registration: Verify if the builder and project are registered with RERA.
✔ Verify Land Title: Ask for the original sale deed and check ownership records.
✔ Confirm Approved Plans: Ensure building plans are approved by the development authority.
✔ Check for Encumbrances: Ensure the property is free from legal disputes or loans.
✔ Visit the Property & Builder’s Office: Physical verification is a must.
✔ Cross-Check Market Prices: Compare prices of similar properties in the area.
✔ Demand Proper Documentation: Ensure agreements, sale deeds, and NOCs are legally valid.

How to Avoid Being Scammed?

✔ Avoid Cash Transactions: Always pay via bank transfer or cheque for traceability.
✔ Use a Reputed Real Estate Agent: Verify their credentials and past transactions.
✔ Check Online Reviews & Ratings: Look for complaints against the builder or agent.
✔ Never Share Personal Financial Details: Avoid sharing OTPs, bank details, or sensitive documents with strangers.
✔ Avoid Unbelievable Deals: If it sounds too good to be true, it probably is.
✔ Consult a Lawyer Before Signing: Have a legal expert review agreements before making any payments.
✔ Demand Written Agreements: Never rely on verbal promises from sellers or brokers.

What to Do If You Are Scammed?

✔ File a Complaint with RERA: If a builder is involved, register a complaint with RERA.
✔ Lodge an FIR: For title fraud or Ponzi schemes, report it to the police.
✔ Approach Consumer Court: If the builder fails to deliver as promised, file a complaint under the Consumer Protection Act.
✔ Report Online Fraud: If scammed through an online portal, report it to Cyber Crime Cell.
✔ Consult a Real Estate Lawyer: Seek legal advice on recovering lost funds or taking action against fraudsters.
✔ Spread Awareness: Share your experience on social media and review platforms to warn others.

Final Thoughts

Real estate scams can cost you time, money, and peace of mind. Stay alert, verify every detail, and don’t hesitate to take legal action if you become a victim. Prevention is always better than cure in property dealings!