It is no doubt a right decision to purchase a property in Pune, but in considering this move, buyers should be careful of the potential risk of instances relating to real estate scams. In this blog, the aim is to educate the potential buyers of how to realize the risk of a certain deal and possibly avoid getting scammed in relation to real estate frauds in Pune. In addition, we will also introduce you to Dream Location, Pune.
Pune Property Scam: Red Flags
1. Request for Deposit before Viewing
This practice might be done by an agent who lists properties which are ‘off-market’. By listing someone’s property as ‘off-market’, the agent saves money on advertising and securing opportunities within the estate. Initially, a buyer would contact these agents for a certain property. The agent, in this regard, promises to show the owner of the estate and fixes a certain payment which needs to be deposited initially. The agent then after the payment is done, cuts off all contacts with the buyer. Buyers looking to purchase budgeted a buy loan. It is advisable that these buyers should contact only prominent builders.
2. Title Fraud
A forged document in the name of the property owner or a co-conspirator makes title fraud a very effective method in ensuring that a property is transferred to a different person. The new owner can either sell or mortgage the property without the real owner’s consent. There are many absconding sellers or buyers involved in this type of fraud. The legal implications of such frauds are usually time consuming and expensive and extremely stressful as well.
3. Fake Pre-Launch Offers
In certain instances, before formally announcing the property, the builders will use the reduced price for the apartment. This phase is known to be the one when the project launch is yet so some builders decide to offer reduced prices. This is a legitimate way of buying an apartment before it is built. But unfortunately, it is often abused by con men who claim to have buildings in constructions to defraud many buyers before disappearing with their cash.
4. Bait-and-Switch Schemes
Even if you haven’t heard this word, whatever the case, there were times where purchasers were lured by promises of reasonable property. But soon after the satisfaction of the prospective buyer, out comes a gun and says “the property you came to inquire about is no longer up for grabs”. The potential new owner is then shown a low quality piece with the same price.
5. Taking risks with Unregistered Agents
Risk considerably stands to using unregistered agents as these are agents without licensure and regulatory supervision and can easily execute fraud. They can take the deposit and vanish or make up false details about the real estate in question instead of providing accurate information.
Tips Against Real Estate Scams in Pune
1. Avoid The Risk By Conducting A Background Check
Make sure to do background checks on the real estate, the developers and the agents before making any payments. Read reviews online and if you can visit the office of the developer and talk to the previous clients. All of these should raise suspicion in terms of addressing complete information and having conflicting information from different people.
2. Validate The Documentation Of Your Property
Take time to examine the validity of these documents as they include the title deed, occupancy certificate, building plan approval, and other required documents. It is recommended to hire experienced lawyers who can go through these documents to reassure that they are valid.
3. Licensed Agents Only
Avoid working with any real estate agent without proper credentials as well as a reputable reputation. Conduct thorough background checks on these individuals and authenticate both their registration documents and the required authorities. There is a slight chance that they might fail to show these documents because they are most likely scattered or lost.
4. Inspect the Property
It is strongly encouraged to conduct an onsite visit to the property before concluding any business negotiations and make a deal. Ask yourself if the property description that was provided matches the current condition. It also gives you an opportunity to identify things you would not see on pictures or descriptions.
5. Avoid Wire transfers and other weird payment methods
If a seller or agent requests payments via wire transfers, cryptocurrencies or any other strange platform, run away, this is a clear sign of a scammer.Undertake some precaution by requesting to only utilize payment platforms such as bank transfers or even checks. Never forget to ask questions especially when a seller or an agent wants you to make a payment before verifying the crucial details.
6. Look into Project Approvals
With new projects, always ensure that the necessary documents have been granted to the developer by the required state department and agencies. The documents guarantee that the land use permission, environmental clearance and construction permit is granted. Always be on the lookout for such projects as they may have high chances of being scams if they do not have such documents.
7. Have Everything on Papers Signed Off
Utilize all documents by clearly spelling out all agreements on paper to make it easier to enforce them legally. Oral or verbal agreements are not reliable and if possible, to avoid such troubles, try to eliminate them. Last but not least, make sure the sale agreement caters for all possible payments, terms and conditions, the dates of when the possession is to take place among other critical parts of the sale.
8. Have Belief in Yourself
Let’s say you notice that something is shady about the deal, then have self-belief. Scammers tend to say something is time sensitive and pressure the buyers into making very poor snap decisions. This is why you should think about the bargain slowly and avoid making any pledges in haste.
The Dream Location: Your Reliable Allies in Real Estate
Patience, decent investigations, and trusting only established developers is the way to avoid real estate fraud. One such name is Dream Location, Pune. This real estate brand is one of the fastest developing in entire Pune with several landmarks in significant Pune locations. It also has properties in New Baner and is truly a dream location for homebuyers.
For more information about Dream Location and to search your dream property, please visit Dream Location on Google Map. Contact us today to know more about the best real estate deals in Delhi and North India; we will connect you to the right property investment.