Keep Investments Safe Avoiding These Real Estate Scams

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Real estate sector has become the playground for scammers as it attracts huge money in India’s upcoming properties. There are some well-marketed and innovative scams. These scammers love to play on people’s group dynamics in close quarters both in large cities and small towns. Among these group dynamic victims, there are woman groups, employees of one particular organization, tenants of some building etc. These scammers convince people to buy a real estate that is either illegal or has no existence at all. It’s always best to find good real estate development companies who have participated or own any awards like Real Estate Awards in India.

Some very common scams con artists have executed super successfully with real estate are:

Emu farming:

This a very common scam where people were pursued to do investments in India for the upcoming properties like Emu farms to raise Emu. Fraudsters used to sell those frauds fooling people by telling that it’s a new form of investments.

Teak plantation:

Yes you saw it right. Many people have been fooled by giving a promise of huge returns if they make investments in plantations such as teak. Scammers even take one step up by taking a certain number of people to trip to visit the places. In turn those scammed people become spokespersons of this project and have become investors themselves.

Impersonators:

Many fraudsters take up reputed builders’ names of some upcoming apartments or they will present names of some enterprises that are very similar to the existing ones. Some scammers convince people by printing fake business cards. Ask probing questions to save yourself from getting scammed about the company. They may falter if they are fraud. Do make sure to visit their office to meet them.

Crowd Funding:

On many online forums many online investors were fooled. Mostly by attractive real estate in remote areas pulled off more scams. The government has to step in to control this kind of crowd funding of anonymous investors to the nameless entities. The SEBI or Securities and Exchange Board of India have told those entities that seek crowd funding should be listed under them. Find out if the entity is certified by SEBI.

To avoid these scammers firstly you have to identify scams. Here are some tested points that you must know:

  • Cross-check the ownership deed of the real estate by a good lawyer. Scammers are usually good at making such fraud papers which can be detected only by an experienced lawyer who is in the sector for many years. Though legal consultation is costly but it’s worth it to save you from huge suffering later.
  • Fraudsters try to hurry up the investors to seal the deal. If any builder seems too much eager than the necessary, get alarmed immediately in your head. Do not pay money beforehand very soon.
  • It’s important to do cross-checking of the builder’s track-record and reputation many times. Look if the builder has some good number of previous customers and also own proper address. The builder may be first-timer, in that case, don’t hesitate to use your own resources to check the bank records of the builder. You got a deal that seems like fairy tale? These kinds of deals are actually false. Let’s say the builder is making huge promises about half or full investment returns within some short terms. There is high chance that this investment will give you nothing. Genuine builders will not give such promises.

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