How to avoid real estate scams
Buying a property is a very crucial decision of the life for an individual. Thus choosing the right seller is very much important for the purchase of the flats. Also, most buyers have to avail of home loans to purchase the property for which the amount needs to be repaid along with the installment to the lender. Thus buying a disputed property may result in a major problem for the buyer if any stay arises on the project. The bank also thoroughly verifies the land records and also property documents before the approval of the loans. In case if the loan is sanctioned for the housing project and the stay occurs on the housing project, then, in that case, the borrower would still have to either repay the loans or else may come in the defaulter’s list. The bank or NBFC can again allot the defaulters of home loans as it is noted into the CIBIL system that the applicant is a defaulter of loans. Thus being cautious about booking a flat in a housing project is very much necessary. The housing project should be approved by the plan sanctioning authority or the municipality if necessary.
Before proceeding ahead with the flat booking, the buyer should ensure that the land is available with clear titles, the project must have got approval from the plan sanctioning authority, and the real estate developer should be financially stable. During the acquisition of land, there should not be any disputes in the land; if there are some property disputes related to the property share, then, in that case, the land should not be acquired from the seller. Also, while acquiring a plot or a resale property, there should not be any loan pending on the property. Keeping in mind all these parameters can help an individual avoid scams happening and save from fraud. There have been various controversies in real estate, due to which various cases are lodged in the court related to civil disputes. If the property buyer gets trapped in some property disputes, then, in that case, it may take long years to get the issue resolved and get justice. Thus it is better to be alert before investing in the property rather than in a later stage getting trapped in some controversies.
Following are the steps to be followed in detail to avoid any scam while purchasing the property
- Check the land records before entering into any deal:
If the buyer enters into a deal to buy a plot, then, in that case, the buyer should check with the property documents thoroughly and check with the records with the municipality for the same. If the land records are found to be proper, only then that case the buyer should proceed ahead with the purchase of the land. Also, in the case of booking the flat, the borrower has the right to check with the documents before required from the real estate developer. Else the buyer can even check records in the municipality office for the same. And after confirming the same only, the buyer should move ahead with the transaction.
- Check for the reputation of the builder and also financial records of the builder:
Before booking the flat, the buyer should verify the reputation of the builder. Also, the buyer should check with the website of the builder and check if any disputes have occurred or not in the previous year’s which can be known through internet articles. Also, the financial condition of the builder should be checked to avoid stay occurring on the project.
- Check for the approval of loans:
The property buyer should check whether the project has been approved or not by the bank. If the bank approves the project, it shows that the real estate developer has got the project’s approval for construction, and all the land records are clear. Thus then, in that case, there is no problem in proceeding ahead with the booking in the project.
- Check for co-ownership in the plot or a flat:
In case of the customer wishes to buy the plot, there should not be any hidden ownership through inheritance as it can lead to controversy in the property. At least if there is ownership, then, in that case, the land multiple owners should be disclosed by the seller during the transaction. In case of purchase of flat or even in case of plot, the multiple owners should be disclosed.
- No debt be pending on the property:
The property buyer should ask for a loan completion certificate if the property is purchased on the loans then. If the seller shows the proof of the loan repayment letter, it proves that the seller has cleared the loan.
Thus all the above parameters should be followed by an individual before proceeding with the property transactions. Doing a thorough check of the property documents can help an individual avoid any disputes in property purchases.