How Can We Prevent Property Fraud in India?

Some people put their whole life’s savings into a piece of real estate, which has become one of the most sought-after and costly assets. It has become more difficult to purchase property due to the prevalence of scams in the real estate market. It might be difficult to detect and avoid falling prey to fraud, even if RERA is now overseeing the real estate business and buyers are cautious before buying. On top of that, it’s considerably more difficult for first-time buyers.

There are several varieties of real estate fraud, including title falsification, rushed sales, forced cancellations, delays in possession, false and unfulfilled promises, unlicensed sales, selling the same unit to many buyers, and encroachments. Legal processes take a lot of time and money.

Guard Against Property Fraud: A Quick Checklist for Consumers

• Take your time and think it over. Verify the offer is reasonable by researching similar properties’ prices in the area using multiple sources of data.
• Don’t put all your faith in the pictures you see online, in ads, or in brochures. Come check out the property or project site and talk to the locals to find out what they think of the area and the stores in it.
• Verify if the project has been approved for financing by any institutions. This is a good indicator of reliability because banks only give loans after thoroughly examining the project.
• Verify the owners’ or developers’ credentials by looking into their past work, contacting former clients for recommendations on reliability, reading online reviews, and searching for any signs of fraud.
• You should read the documents many times in order to fully understand each clause and what it means. For advice on anything that could be problematic, have a lawyer look it over. You can get the unsatisfactory conditions or sentences changed by bringing them up with the constructor or seller.
• To safeguard oneself in the event of project completion delays, ensure that the agreement clearly specifies the construction timeline and includes a delay clause.

Also Read: Importance of Newspaper Public Notices for Real Estate Transactions

Things to verify while buying a piece of land or a constructed property

• One of the most important legal documents for determining who owned a piece of land in the past is the title or mother deed. From the first owner to the current one, the mother deed must contain a sequential listing of all owners.
• In order to permit the construction of businesses or homes on a piece of land that was previously used for farming, a land conversion certificate is required. Without the conversion certificate, any building on the property is illegal and is subject to demolition by the appropriate authorities. You need to have a land conversion certificate before you can buy the property or the structure.
• A certificate that specifies the land’s use, such as residential, green belt, commercial, etc.
• For tax purposes, the local government conducts an annual property assessment that takes into account local market conditions and property prices.
• Most recent receipts for property taxes: proof of current property tax payments received from the local government. If the seller does not have the tax receipts, the buyer can confirm ownership by contacting the local authorities using the property’s survey number.
• Any mortgages, transfers of title, or other recorded transactions affecting the property can be seen on the encumbrance certificate.
• Dominion Oversight: A power of attorney can grant the right to sign mortgage or rental agreements on another person’s behalf. Nevertheless, registering this document is also required.
• Site Evaluation Drawing: In order to create accurate maps and plots for use in construction or other legal documents, property surveyors take precise measurements of the parcel’s boundaries. In order to avoid any boundary disputes in the future and to find out whether there are any hidden issues with the property you want to purchase, this is essential.
• Verification by RERA: Legally, a property, project, or real estate agent can be said to be registered with a state-level RERA organization if they have an RERA certificate. Details on the developer, property, and agent are included in the certificate, in addition to the unique project registration number. Without the RERA certificate, no real estate agent, developer, or builder can market or schedule the sale of the property.
• Construction Plans: A collection of building-related drawings and specifications that must be presented to the appropriate authority for approval before construction can begin in accordance with the bylaws.
• A completion certificate, issued by the appropriate municipal authorities, attests that a building has been erected in compliance with all laws and specifications.
• Occupancy certificate: The relevant authorities will inspect the building to make sure it satisfies all requirements. This paper confirms that the building is prepared to be occupied.

Conclusion

Digitization has emerged as a practical solution to the problems associated with land records; it benefits the government, property owners, and purchasers by making real estate transactions more transparent and easier to understand. Property security companies like Property Watcher take this a notch ahead by providing property owners with crucial information right on their smartphone screens in order to prevent property fraud or real estate scams.