Property Fraud: Know The Ways In Which You May Be Cheated
Owing to the opacity in the Indian real estate market, many a time gullible buyers are taken for a ride by scamsters. The modus operandi of most of the fraudsters is to confuse you and exploit your ignorance about the system. A thorough understanding of things would help you stay insulated against fraudulence.
PropGuide shares with you what the potential scams could be.
Fake documents: This is the most common way to be cheated by a seller. In a majority of the cases, a naïve buyer is handed over fake property documents. It is advisable to verify the relevant papers from the sub-registrar office.
Double mortgage chances: There are chances that before selling the property to you, the seller might have mortgaged the property with two different banks. There have been numerous instances where sellers have availed of loans against the property, dispose of the property and vanish into thin air. You have to fight a protracted legal battle to get your hard-earned money back. It's better to get the particulars of ownership verified from the sub-registrar office.
General power of attorney: There are chances that the property you're buying was given on a general power of attorney (GPA) by the real owner. A GPA is prone to fraud because the same property may be sold to different persons. There have been cases where the real owner approves more than one person for the GPA and all of them end up selling the property to different people.
Land belongs to the government: A fraudster may show you government land. You may become the victim of fraudulence if the seller has created an unauthorised layout in government land. You must ensure that the plot or the house shown to you by the owner is really owned by him/her. Making local enquiries always come handy.
Encroachments: Many cases have been reported where the seller has encroached upon his neighbour's property by violating the layout. He may register this encroached layout in your name after extracting a handsome amount from you. Later on, you realise that you're not the rightful owner of the said portion. This would make it impossible for you to claim your money back if your seller has escaped from the scene.
Dubious agreements: There are chances that you are handed over dubious agreements. For instance, you buy a 250-sq-yard plot and after paying a considerable amount, you get the plot registered in your name. However, when you measure the plot size at a later stage, you realise the plot size is lesser than the one that is mentioned in the agreement.
In a nutshell, it is critical to verify each and every aspect with the sub-registrar office and take an informed decision.