The Indian real estate sector is mounting. Subsequently, the scams and frauds associated with it are growing as well. Consumers however, these days are well-versed. Although ironically are still at risk of being scammed. How do I shield myself from real estate scams is the primary question that pops up in the mind as one plan to invest in the sector.
This blog intends to explain the possible real estate stings that home buyers face when they decide to put in money in this sector.
Real Estate Scams: Investors Need to Keep An Eye Out For
1. False Promises
Builders to meet the rising competition in real estate are trying to tempt buyers in the initial phase of a project booking to meet their funding requirements. Furthermore, they make fake promises. Many real estate developers at times have been accused by investors of misusing crores in real estate projects. The developers often assure a set percentage of returns on the invested money until possession. However, often the cheques given by the company bounce. In simple words, the dreams of the investors go into dust.
2. Assured Rental Returns
To put in simple words, there are builders who market their projects by promising a fixed rental income from properties. Besides, there are many builders who even circulate false rental listings of various projects over the internet. Meanwhile, as a buyer you need to carry out your own research. If you fail to perform your own study, you may in reality believe that the property would easily be rented out for a fixed monthly income. However, in reality, once the transaction is done, rentals are hard to come by.
3. Real Estate Scams of Fraud Title
Well, this is something very common. Scammers often duplicate title deeds of disputed projects and sell them to buyers. By the time the innocent buyers sense the scam, the scammer is far out of sight.
4. Purposeful Delays
Project delay is a common real estate fraud. Most importantly, builders delay project completion intentionally until they get required number of buyers. There are many who invest the money pooled from one project into another and finally hold-up both projects.
5. Variation from Approved Plans
In many projects, you may often notice that on completion there are actually several deviations from the approved plan in terms of common areas. This becomes a big challenge for many buyers. To put in simple words, they need to compromise on common amenities, promised luxuries and spaces. They at times need to negotiate on core project amenities like dedicated parking space etc.
6. Real Estate Scams: Delayed Approvals
In many instances, buyers that there is no hope even after possession. This is because a number of sanctions for utilities like water connection, electricity connection, etc. remain pending.
7. Fake Real Estate Professionals
Undeniably, there are a number of fake real estate professionals. Subsequently, these false people will move you to send funds to their account, assuring to hold on to them until the transaction is complete. However, in reality, once you deposit the cash into their account, you won’t see them again. Hence, be sure to check out the credentials of the agent before you choose to go ahead with a real estate transaction.
Wrapping up
Scams, definitely is financially devastating. Furthermore, when it comes to real estate it is distressing as it involves a hefty amount. However, there are ways to spot red flags that can make you aware of deception before it’s too late.
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We will come up with a write up on how home buyers can keep themselves away from such scams. Keep exploring.
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