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How To Escape From Real Estate Fraud?

by SA Homes, Posted on 03/01/2018

Real estate scams aren’t a trending news in the current scenario, they have been around for a very long time. Nowadays people are more informed regarding real estate frauds and scams, but still, there are some who fall prey to it.

Buying a new property involves a long-term commitment and a large amount of investment behind it. Many fraud people utilize this chance by manipulating people who are new to this field and ready to invest.

Here are some of the common fraud practices which the investors and property buyers should always put an eye on.

  • Fake Promises: Because of huge competition in the field of real estate, most of the property agents shower the buyers with many promises and advertisements during their first meeting which they never intend to keep. Some people go forward with those promises to invest. As a result, the investment goes into dust.
  • Fake Rental Return Listing: There are some deceitful people who publish fake rental return listing over the internet or other sources, and promise to provide rents on monthly basis. Some property buyers fall into their trap and become a victim of real estate frauds.
  • Project Delays: Delaying a project is a common practice in the construction field.  But there are situations when this can cause a huge loss to the investor, since the investor would have taken funds from elsewhere. So if the projects are not ready on time, he may be the only one who has to face the consequences.
  • Duplicate Title: You must have heard about title fraud, in which people sell a plot or building which is already sold or booked, they pretend that they are the title deeds of the property. By the time the buyer knows about the fraud the seller would have vanished.

Now you must be familiar with some of the common real estate frauds happening around you. It is not easy to find out the culprit from the society, So it is necessary to know the basic requirements or information regarding property buying and selling.

Below is some basic information which an investor or a property buyer should always consider while going into a deal.

  • Verify true Ownership:  It is very important for any buyer to verify the true ownership of the property. In case of power of attorney, the buyer should verify that too. More or less he may be the only one who has to suffer.
  • Check for bank approval:  Before going for financial transactions it will be good if you could check with the bank as well. Because bank will approve only those properties which are legally clean and have all the required documents.
  • Confirm the title deed: It is vital to check and confirm the original title deed of the property. Always confirm that the property is in the name of the seller or the developer itself. Because this is one of the most haunting problems for investors and property buyers.
  • Ask for completion certificate: Completion certificates are issued by authorized authorities assigned by the government. If the property has been issued the completion certificate, it means that the building or property has been built legally and according to the approved plan.
  • Check for legal dues: Before entering into a financial transaction for any property, make sure that the property does not have any legal dues. If in case of reselling, ask for “No Objection Certificate” (NOC).
  • Go for Written Agreement Only: It is important to have a written agreement containing delays, charges for amenities,  payment terms, facilities etc.  to avoid future complications between the buyer and the seller.
  • Always prefer a legal adviser: It is always better to hire the service of a legal advisor and discuss all the property related issues with them, so that your purchase will be legal proof.

Above all, it is all about taking proper actions and decisions while you go for investment or buying a property. Still, there are many property builders who are well known for their goodwill and quality they provide.

Property developers like SAHomes, are one the well-known developers in Palakkad, who can help you build your dream home. Contact SAHomes for more details regarding Flats and Apartments at Palakkad.

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