Top 3 Indications of a Potential Property Scam
Jan 04, 2017 Legal Guidance
Home buyers always look for catchy advertisements in the print as well as digital media to identify the most suitable house for themselves. However, many of these advertisements are too good to be true. They are just made up to grab your attention and impress you with their impressive price offering for the property along with so called world class amenities. Sadly, many of the first time home buyers fall into this honeytrap and get scammed by such fraudulent. For example, you may come across an advertisement that a specific housing project is offering 3 BHK flats for just under Rs 30 lakhs. Now, at first you will be quite impressed with the rate on offer, however, practically speaking, the offer seems to be too good to be true. It is here that the potential buyer must exercise caution and be vigilant before investing his hard earned money into such scams.
Let us discuss some of the red flags you should look out for in any housing project before making any deal:
Everything’s just perfect: Too good to be true
Frauds do not just happen. Instead, it is the victim who himself falls into this trap. With some very unrealistic and over the top promises, home buyers fall very easily for such ads. However, doing a background check of the builder won’t hurt your prospects. Any big builder, who has a name for himself won’t generally indulge into frauds. Developers who claim to provide impractical services, unrealistic targets at very cheap rates should not be trusted quickly. At such times, the home buyer needs to be extra cautious and vigilant. Also, situations where it involves investment offers of quick returns should be carefully studied before investing money.
Signs of extreme hurry shown by the seller to close the deal:
There are times when the seller doesn’t give you enough time to come to a decision and instead tries to close the deal as fast as he can. This is one of the most common signs of the scammers. Potential scammers will always try to hurry the deal and constantly ask you to make the down payment. These scammers offer the property way below the market rates and tempt the buyer to invest into it.
Lack of transparency, unclear documents:
For a deal to be legitimate, the buyer needs to sign multiple property documents which include the sale deed. However, never make a down payment to the seller before signing any documents. Always insist on paperwork before carrying the deal forward. Conmen may insist you to make payment before signing the legal documents. The buyer must always investigate the credentials of the paperwork, whether the developer has all the approvals etc. before closing any deal.
So before deciding on any project do keep in mind these pointers to save yourself from a property scam.
Let us discuss some of the red flags you should look out for in any housing project before making any deal:
Everything’s just perfect: Too good to be true
Frauds do not just happen. Instead, it is the victim who himself falls into this trap. With some very unrealistic and over the top promises, home buyers fall very easily for such ads. However, doing a background check of the builder won’t hurt your prospects. Any big builder, who has a name for himself won’t generally indulge into frauds. Developers who claim to provide impractical services, unrealistic targets at very cheap rates should not be trusted quickly. At such times, the home buyer needs to be extra cautious and vigilant. Also, situations where it involves investment offers of quick returns should be carefully studied before investing money.
Signs of extreme hurry shown by the seller to close the deal:
There are times when the seller doesn’t give you enough time to come to a decision and instead tries to close the deal as fast as he can. This is one of the most common signs of the scammers. Potential scammers will always try to hurry the deal and constantly ask you to make the down payment. These scammers offer the property way below the market rates and tempt the buyer to invest into it.
Lack of transparency, unclear documents:
For a deal to be legitimate, the buyer needs to sign multiple property documents which include the sale deed. However, never make a down payment to the seller before signing any documents. Always insist on paperwork before carrying the deal forward. Conmen may insist you to make payment before signing the legal documents. The buyer must always investigate the credentials of the paperwork, whether the developer has all the approvals etc. before closing any deal.
So before deciding on any project do keep in mind these pointers to save yourself from a property scam.
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