Being a homeowner is considered a milestone in people’s lives in India. Even low-income individuals want to become homeowners by putting all their savings and money into it. This feeling makes them more eager to choose offers where they can buy houses at reduced rates.
Although real estate is a synchronized industry with stringent laws like the Real Estate Act of 2016 coming into the picture to guard home buyers, there is a development in the frauds and scams that happen in the industry because of the eagerness of buyers to go for reduced rates. There might be more guards for buyers, but newer tactics and schemes by builders still make the purchasers vulnerable to such scams. The real estate scams range from deceitful investment schemes to delayed ones.
When looking for flats for sale in Gurgaon, you may notice that developers or builders target consumers eager to buy/rent a property. They develop imaginative plans that provide low rates or decrease the buyer’s financial burden, which may sound tempting. Still, after the money has been taken from the buyers, these plans turn out to be schemes of duping customers with their money and never actually offering them what they were promised.
The real estate sector has become more synchronized in the past few years, but corrupt builders and developers still find ways to cheat people of their money, and it is essential for people who buy homes like a 2 BHK flat for sale in DLF Ankur Vihar to be cautious of strategies used by builders/developers.
Common types of scams
- False promises
False promises are one of the most common frauds in the industry where the builder does not live up to the responsibilities he had made when the property was purchased. It is done to meet funding necessities. This is evident in various ways as per the stages of the project:
- Offering a huge reduction on instant investment.
- Fake advertisements promising common areas, amenities, or views are not available after the project is complete.
- Project postponements- Getting construction endorsements like Completion Certificate, Occupation Certificate, layout authorizations, Floor area permissions, etc., and getting post-construction utility approvals like water connection, electricity connection, etc.
- Possession Delays.
- Good easy exit from the investment.
- Title deception
Frauds and title deceptions are one of the most popular ones in the real estate sector and can be committed in different ways:
- Builders often copy the title deeds of disputed or vacant properties and sell them to numerous naive purchasers. They can claim that the title documents are misplaced or POA or Power of Attorney holders for the said property and sell it to you.
- Builders sell properties, not in the same location as promised or that are not theirs to sell.
- Developers sell lands that have a mortgage on them.
- Deviation from the approved plan
Homebuyers face a huge problem when they invest in flats for sale in Gurgaon that are under construction. A 5% wiggle room is given for deviations as inevitable technical or architectural difficulties arise. However, when the deviation is superior to this, the project can get delayed because of difficulties obtaining the Occupation or Completion Certificate, leading to delays. Another outcome can be where the promised common areas/amenities like gyms, parking spaces, pools, etc., are not as promised or are just non-existent as had been promised.
- Assured return schemes
Builders often publicize ten to twelve percent returns until possession if upfront payment of a high cost of the property is made. The returns are done by getting bank guarantees or post-dated cheques, and, in most cases, the payments stop after the first few months. It has been declared an unlawful Ponzi scheme by India’s Securities and Exchange Board (SEBI). Additionally, the start of the Banning of Unregulated Deposit Schemes Act, 2019, has come into effect, which bans such schemes.
- Forced cancellations
In a few cases, the builder sells the property at reduced rates and keeps getting money during building and ultimately delays the project forcing cancellation, so he can re-sell the home at increased prices later.
Tips to avoid real estate scams when buying a 2 BHK flat for sale in DLF Ankur Vihar.
- After you get a call from a real estate organization, you must question them about the location of their office, which will help you get an idea about the legitimacy of the information provided by the concerned person. Your next step is to investigate the firm to get a suggestion on the service quality.
- The solution for delayed projects is to contact the developer frequently to get the project’s status. However, if the project is being postponed, you have an option to file a case against the developer.
- To solve the Misrepresentation of Title scenario, the customer can confirm the property title by a legal representative and get a legal heirship certificate that describes the bond of the owners.
- As a solution to the forced cancellation issue, the property buyer can ask the developer to give in a written statement that the units will not be canceled if the costs increase.
- If fraud developers make minor changes to the accepted plan, the property buyer can file a complaint against the developer for conducting fraudulent activities.
You should be intelligent enough to know what the real estate agent is trying to do. You should meet the representative to observe his communication skills, body language, and interpersonal skills. Always ask for written statements that state the authenticity of the information provided by the developer. Thus, all the home-seekers worldwide should be cautious and become proactive in preventing Real Estate Scams.