Like any other industry that involves heavy transactions, real estate is also susceptible to frauds and scams. Investing in real estate is a life-changing decision that takes up a big chunk of your hard-earned money and obviously, you wouldn’t want to get scammed. There’s immense pressure on you to make the right decisions regarding your investment and avoid frauds simultaneously. Since the introduction of RERA (Real Estate Regulatory Authority) in India, the number of frauds and scams has reduced by a lot but still, it’s important to know the different types of scams or fraud attempts that you can come across.
Types of Land Frauds
- Delay in the time of delivery is one of the more common types of fraud where the project is not completed as per the promised time
- Uninformed changes in the specifications mentioned in the agreement
- When sale and deeds are executed before the necessary licenses and permissions for the construction of the building are procured
- Hidden clauses in the agreement that could affect the buyer
- Disputes in the ownership of the land ultimately put the buyer’s investment in jeopardy
- Real estate agents may overcharge for a property under false promises of high returns and quick development
- There are times when the same property is sold to numerous buyers
- Sometimes a random person might pose as the owner and execute the sale
Tips to Avoid Land Frauds
- Never rush into a real estate investment. Do your research. Tally the real estate rates from multiple sources and make sure you are being quoted the right price for the property. Real estate developers may cunningly tell you that there are only a few units left and you need to quickly decide, or offer you discounts for booking quickly. However, it is at your discretion to take your own time to check and decide.
- While choosing to invest in an underdeveloped area, make sure that the area is going to develop in the future. You can check the potential of the land by calculating its distance from the airport and its proximity to growing industrial sectors as some areas do not develop even after two or three decades.
- There’s no harm in taking advice from experts in the market
- Never buy the property because the images online or the brochures look good. Make a visit to the site and see for yourself and speak to the locals of the area like shopkeepers and petrol pump executives.
- Check the track record of the developers thoroughly and don’t shy away from asking for references of previous buyers as it helps you confirm their reliability. Online reviews are a big help too.
- Ensure that the project is approved by banks for loans as that indicates authenticity because banks only approve the projects after a thorough inspection
- Ensure that the ownership of the land is clear and ask for copies of permissions, approvals for the project, as well as that of the title deed
- Examine the documents carefully, multiple times, and understand every clause and its implication. Have the documents read by a legal expert who can help you out and if any discrepancies are found, speak to the developer to get them changed or back out from the deal.
- Ensure that the timeframe of the construction is clearly mentioned along with a delay clause that benefits you if the project is delayed
- Most importantly, always purchase properties from reputed builders and ensure that the projects are regulated by the respective authorities such as RERA, HMDA, and DTCP as this adds an extra layer of security, protecting you from frauds and scams
At TMR Group, we offer clear-title open plots in Hyderabad. The projects are registered under RERA. The well-planned layouts accommodate DTCP and HMDA approved plots in Hyderabad. We prioritize the quality of development and complete our projects’ top-class amenities that are likely to improve your ROIs. Our projects are thoughtfully placed in locations that have tremendous potential to grow and are well-connected to the airport and the rest of the city. Visit www.tmrinfra.com to know more about us and book a site visit today!