Real estate is not just a subject for large companies involved in the realty business; it is also closely related to common people because everyone aspires to buy a house or land. However, in this process, some people fall victim to fraudsters in the real estate industry, except for a few dedicated construction companies. Experts, therefore, warn people to stay alert about frauds happening in the real estate sector and advise them to carefully examine the relevant documents before purchasing any property.
Real estate has been a stepping stone for many, lifting them to greater heights, while others, hoping for a bright future, find themselves trapped in misfortune. Some people fulfill their dream of owning a home, while others invest in real estate believing it will yield good profits. However, there are also those who, chasing trends in real estate without taking necessary precautions before transactions, end up suffering losses. At the same time, new real estate companies are emerging, taking advantage of people’s needs and indulging in frauds. Experts, therefore, urge people to stay vigilant against frauds in the real estate sector.
The primary form of fraud in real estate concerns ownership rights. Some realty companies sell land or flats without having the actual ownership rights. They claim power of attorney and sell the property, even though they do not own it. In fact, the Supreme Court has clearly stated that sales should not be carried out through power of attorney. Moreover, companies also sell properties that are embroiled in disputes and legal issues. Therefore, experts advise complete caution regarding ownership rights before making any real estate transactions.
Experts suggest that when purchasing a plot of land or a flat in an apartment, it is important to thoroughly check all documents at least once or twice to avoid any complications. Before buying a plot, flat, or house, it is essential to review all the necessary documents. To verify ownership rights, ensure that the property survey number and boundaries match across all linked documents. You should also check if permission has been granted by relevant authorities such as the municipality, DTC, HMDA, Municipal Corporation, or Urban Development Authority.
It is crucial to verify title deeds and property ownership documents against the official documents issued by the respective government departments. Also, confirm that the land you are purchasing is not classified under restricted or prohibited properties according to the Registration Act, 1908 (Section 22A) or other government regulations.
Experts further advise physically inspecting the property on the ground and conducting a thorough evaluation before making any purchase. You should also gather complete details about the company developing the land or apartment. Ensure that all linked documents, from the actual owner to the current seller, are in order. A site plan and location boundaries must be in accordance with the approved layout plan. If the property is not built as per the approved plan, municipal authorities may demolish it at any time. If there are any uncertainties or unclear matters, it is recommended to consult legal experts experienced in real estate transactions before making any decisions.
