How to deal with Real Estate Scams in India?

Date: 11-December,2020Last Updated: 26-September,2022
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Have you ever wondered How to Safeguard yourself from Real Estate Scams and other fraudulent practices common to the industry?

Well Lucky for you,

We want to give you a few tips on how you can prevent yourself from the cruelty of Real Estate Scams. But before that, let us explore how these real estate fraud firms conduct their fraudulent activities.

Usually, they pretend to be a proper real estate agent and tell customers that they belong to one of the biggest realty brands in the country. Then they inform their customers that an investment in one of their properties will ensure a 100 percent return on investment (ROI).

They create an attractive website that shows affordable as well as expensive properties, which usually turns out to be a single web page or real estate micro site. Their main motive is to influence customers to visit their website and motivate them to submit their details online so that representatives can contact the customer and encourage them to purchase the property without even visiting the property.

And if the customer insists on visiting the Site then these fraudsters will say that the site is under construction, bookings have been almost filled and only a few slots are left. These kinds of circumstances are created by these fraudsters that influence the customers to purchase the property online.

But that's just one of the ways the scamsters try to fool us, here we give you 9 tips to safeguard yourself from realty frauds and scams-

"How to deal with Real Estate Scams"?

1. Conduct thorough research on the Real Estate Firm:

Once you get a call from a real estate agency then you must question them about the location of their office that will help you to get an idea about the authenticity of the information provided by the concerned person. Then your next step is to research the firm so that you can get an idea of the quality of their services.

2. Misrepresentation of Title:

Misrepresentation of Title is the scenario whereby the ownership of the property has not been properly portrayed. It is one of the most common real estate scams in India and many fall prey to it. The representatives usually prepare duplicate papers of properties that do not belong to them and then sell them to others. These types of circumstances occur when the property has not been used for a longer period.

To solve this problem, the customer can verify the title of the property by an attorney and obtain a legal heirship certificate that defines the relationship of the owners.

3. Delayed Projects:

One of the most common real estate scams is delayed projects. The developer promises possession of the product within a certain time-limit but in the end, the customer receives a breach of trust.

The solution for these kinds of problems is to contact the developer frequently to obtain the status of the project but still, if the project is being delayed then you have an option to file a case against the developer.

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4. Rental Swindle:

Most of you guys might be wondering that renting an apartment is much easier than buying a house.

But there are a few instances where you can go wrong.

Let us bring forth certain facts that help you understand the reality of the real estate industry.

According to recent reports, 43 percent of the general public often fall prey to the fraudulent listings within the major websites. Thus over five million buyers have been scammed over the last few years. This is why we should always check out property portals that brings you verified listings like us.

As a property buyer, you must be cautious about false advertisements online, so we suggest that you either ignore or double check the same before jumping in.

You must differentiate between the people who are willing to meet you to execute the deal and the people who just want you to purchase the property without even having a glance at it.

5. Forced Cancellation:

While forcing cancellations, the developer would delay the project that was earlier sold at lower rates and later re-sell the same project at higher rates. And after a while, when the property rates tend to increase then the developer cancels the units that were sold at a lower rate just to gain higher profits.

As a solution, the property buyer can specifically ask the developer to give in a written statement that the units will not be canceled if the prices increase at a later stage.

6. Slight Changes in the Approved Plan:

Some fraud developers make slight changes in the approved plan to misguide the customers. If the changes made in the plan have not been approved by the civic authority then the developer gets into big trouble with regards to the demolition of the property.

As a solution, the property buyer can file a complaint against the developer on the conduct of fraudulent activities.

real estate frauds

7. Acquire specific details related to a Property:

The best way to prevent real estate scams is to acquire good information about the property. You must check the ownership of the property as well as the track record of the developer so that you can understand the brand value of the company.

8. Notice the behavior of the Representative:

As a property buyer, you must understand and analyze the behavior of the representative. You must interpret whether the representative is trying to force a decision on the customer or whether the person is trying to give you enough time to think about your decision to purchase the property.

You must be clever enough to understand what the representative is trying to do. You should meet the representative in person so that you can observe his body language, communication skills, and interpersonal skills.

9. Prefer Tangible Transactions & Proofs :

Though we are all living in a digital environment where numerous transactions occur digitally, we would advise you to go for tangible proofs and transactions to avoid fraudulent activities from developers.

Always ask for written statements that specify the authenticity of the information provided by the developer.

Government Intervention

Our Government too has taken various steps to curb corruption and regulations to aid the innocent victims of real estate scams over the years. Reforms such as RERA & Demonetization were the two major undertakings of the Indian Government to protect the common man from the frauds in the industry. Along with the same, the Judiciary, including the Consumer Courts are too working diligently to provide Justice to the victims and scapegoats of realty scams. There are various other digital real estate schemes like Khata Online, Patta Chitta Online, helping the common man back up his hard-earned properties from scamsters.

And thus to conclude, we would like to advise all the home-seekers around the world to be cautious and become proactive towards the prevention of Real Estate Scams.

Bonus Section

FAQ on Indian Real Estate Scams

Which are the most common Realty scams in India?

Rental Scams are the most common in India as most people prefer renting instead of Buying.

What should you do if you've been cheated in a transaction?

Rather than trying to negotiate with the fraudsters, you should always go through the proper channels by filing a complaint and seek the help of legal and civic authorities. The proper channels might take time but it's better than losing off a significant amount to the tricksters. After all, negotiations are a win-win scenario for those who indulge in real estate scams!

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