How to Spot Real Estate Fraud
If you are looking with care, you would find the obvious red flags
Ottawa: An advertisement stating that a 2BHK apartment is up for grabs in Delhi's Lajpat Nagar for Rs 8.99 lakh is surely going to give you a happy shock. But, it is here that you have to exercise extreme caution. Advertisements and offers are often impregnated with scams and as a buyer you have to act with prudence and vigilance. If you are looking with care, you would find the obvious red flags.
An innate characteristic of a fraud is the promise of unrealistic returns. Instead of getting excited about it, one has to be more watchful. As in the case of investments, deals offering quick, hefty and easy returns should be taken with a pinch of salt.
Seller is in a tearing hurry:
If your seller is in a hurry to close the deal, there is a need to be vigilant. Any fraudster, who has the intention to cheat you will show an urgency to sell the property, and will insist you to make the down payment right away. Many even offer a price that is below the market rate. Victims are often warned of dire consequences or the loss of the good deal if they don't act right away.
No clarity on documentation:
In a normal transaction, one has to engage in a rigorous documentation process to make provide the transaction legal validity. Conmen often insist on payment of money before you sign on the legal documents, taking the plea that paperwork would take its own course. It is important to rightly establish the credentials of the seller and that can happen only if you insist on paperwork. One should also check if the property is mortgaged. If the seller is apprehensive in showing you the property papers, it means something is amiss. A close scrutiny of papers, including approvals from the local authority, registration certificates, etc., will help you establish if the seller has a checkered past or not.