How to Identify Property Fraud?
The purchase of a dream home might consume a person’s life savings and evoke strong emotions. The excitement of a new house is palpable, but you should take precautions to avoid falling prey to a real estate scam. Is it possible for you to tell the difference between real estate fraud in India and forged documents? Below, Property Watcher reveals the secrets!
Victims of property scams often face not just financial ruin but also the anguish of going to court over their losses. Con artists in India continue to swindle unsuspecting consumers despite the country’s robust legal framework. They try to get the buyer to agree to the sale quickly by forging property documents or painting a positive picture. They will sometimes scam many buyers out of the same piece of property before disappearing with the cash.
Most cases of property fraud involve a lack of knowledge and investigation. In light of this, we have compiled this guide to help you spot real estate scams in India and stay away from them.
How can one spot a real estate fraud?
Another possible scenario that could lead to a property scam in your next real estate purchase is:
Seller Is In A Hurry To Sell
A red flag may be raised if the seller is eager to finalize the transaction quickly and wants a large sum of money up front. In order to get you to sign quickly, a con artist may use extreme urgency and try to offer you a good deal. Another red flag is if the seller is too eager to show you the paperwork without first asking for it.
The Deal Sounds Too Good to Be True
Be wary of a phony property registry if you receive an exceptionally lucrative offer. Once in a while, it’s the con artist’s technique of luring victims in with a tempting offer they can’t refuse, using the dread of missing out as a hook.
Doubtful paperwork
Be wary if the seller doesn’t let you check the paperwork related to the sale, such as the title, ownership, or loan. For this reason, the seller is understandably hesitant to get a no-objection certificate from a bank or other appropriate government agency prior to the sale.
Several land records have been digitized and made available online over the years. In order to confirm the paperwork, buyers can attempt to access the records online. The local revenue offices also offer certified document services, so you may use them to double-check your paperwork.
Not Showing Property
If the vendor withholds information or refuses to grant full access to the property, it could be a hoax. When this is the case, the seller will not provide a site inspection.
Things to keep in mind while selling a home in order to spot a real estate scam.
It is crucial to verify the buyer’s identity and details before approving any online advance payments.
It is important to use caution when interacting with someone online and never share comprehensive property paperwork with them.
Before entering into an agreement, never give out your Know Your Customer (KYC) or bank data to a buyer or agency.
To close the deal, don’t have any online conversations or use video calls to present the property.
If a potential buyer contacts the seller directly to express interest in the property without first seeing the property in person, the seller should exercise greater caution.
What actions should you take in the event that your property documents are forged?
Here are some quick actions that can be taken to fix the condition mentioned earlier:
Notify the authorities
Bring the perpetrators of the forgery to justice by filing a criminal complaint with the local police station that has jurisdiction over the property. This will prompt an investigation and the eventual arrest of all individuals complicit in the criminal plot.
Notice to the Notice
The general public should not rely on the fake document for any type of transaction; a public notice or Jaher notice should be issued to that effect. To find out if any transactions have been made using the fake paper, you should ask the public for information.
Go to the pros for help!
You have the opportunity to speak with an attorney about your legal alternatives. To find out if the fake document has been used for any deals, you can also run a thorough title search with the Registrar of Properties’ office.
The victim of fraud should report the incident to the local police station as soon as possible. This will help prevent further legal action against the perpetrator(s), who may be wanted for various offenses such as cheating, forgery, and seller absconding. Also, you need to physically notify the relevant sub-registrar through a designated advocate if you become aware of a fraudulent transaction. Additionally, the buyer can go public with the details of this deceitful deal while simultaneously serving the real owner of the property with a legally binding notice.
Go to the Court
By taking the matter to court, one can also seek legal remedies. Obtaining a court order to reclaim custody and prevent the perpetrators from using or accessing the property based on the aforementioned forgery requires this critical step. The criminals will be unable to use the document for any further transactions, and a stay order will be obtained in the event that any other transactions are conducted using fraudulent documents.
After acquiring the seller’s KYC paperwork, buyers should always insist on paying the initial token amount through the bank. It is important that this sum matches the property documentation. If the housing project is brand new, the buyer has the option to verify if the developer has registered with RERA or obtained the necessary approvals from the local authority to construct the property.
Conclusion
The housing market in India is expanding rapidly. The likelihood of fraud increases when there are more property transactions taking place. The homebuyer should use caution and vigilance before finalizing any agreement. Property Watcher provides services to help you keep your property safe. Keep in tune with Property Watcher to learn more about the safety of your investment and property.