How to know about real estate frauds?
Tips On Avoiding Real Estate Scams While Investment
As per the latest data from the Expert, sources show that returns from real estate are gradually rising average of 10 to 15 percent every 5 years. Around the city, with the fast development and construction of real estate projects, the scope of home financing also rises. As the scope of real estate and finance increases it also gives birth to hidden real estate scams. So it is must require to know the best tips on avoiding real estate scams while investing.
Abundant options with an eye-catchy offer distract you from the right path. Unawareness about the types of real estate scams is the major factor in the growth of real estate cheatings. Unintentionally negligence happens in proofreading essential checklists.
Because of an illiquid nature of an asset. It is Impossible to exit in a hurry from real estate investment. It is difficult to bring an offender for an investment. Therefore it is essential to check on real estate scams while buying, selling, and investing in real estate projects.
What are the types of real estate scams?
- Using someone’s name to sell property or land
- The promise of investment gain or rental income
- Property title scam
- Delayed project delivery or no possession on the committed date
- Any type of hidden Variation in the original construction plan.
Let’s discuss in brief:
- Using someone’s name to sell any property of land: Real estate scammers pretend themselves that they are the promoters of a respected builder to win the belief of an investor. To avoid such kind of fraud inspect once with the name and profile of a promoter. Also one can approach builder and developer in case any doubt evolves.
- The promise of investment Gain or Rental Income:
Keep in mind promises always not true. It is common selling tactics to pitch a customer with a bundle of benefits, offers, and discounts. Enticing promises like quick gain on investment via capital appreciation and investing can give you good monthly rental income are the wrong promises which do not has any guarantee. If any realtor saying guarantee returns on investment then it may be a signal of falls promise.
- Property Title Scam (fraud):
Title scam is the most common scam among the above scams. Most of the investors and buyers are facing this problem. Fraudsters put their hoardings and banner on the empty plot of land to gain the strong trust and belief of customers. They show and brief them about the property. Which is exactly does not belong to him. Lack of official clearance is an obstacle for the property. The best is to check with the builder’s online profile, read online reviews, and ask localities for complete info.
- Delaying in project delivery:
Delayed possession is always a problem for one-fourth of every home buyer. Builder fails to handover respected property at the committed date. Once the project gets delayed it creates uncertainty of completion of the project. Before investing Please check with the previous record of the property developer for any delayed project.
- Changes in original construction plan:
Many builders hide additional changes that are not as per an original construction plan. Changes like additional floor rise without any clearance certificate and converting children’s garden area into paid parking are some of the common factors that create trouble for home investors.
The factor of making commercial space in a residential premise by extending the building premise without any official approval is also considered a breach of the original construction plan.
What to do next if investment in real estate gets stuck?
To safeguard a buyer’s interest law plays a great role. In real estate (RERA) a trusted government body which is formed to safeguard buyers’ interest. The real estate regulation and development act looks after all legal issues between buyer and builder.
Overall it is best to consider the above-stated points to avoid any kind of real estate investment scams in India. Awareness must require before step up into a big investment. If you need real estate investment then approach a well known residential and commercial developer with a 100 % trust factor. Get a quote today for high quality and spacious homes in Kalyan Mumbai.