How to avoid Real Estate Scams in India?

If you are planning to buy a property in India remember that you should not rush your decision of investing.  While you may come across real great deals in real estate, you should always verify below our points to avoid real estate scams. You should sign the booking amount cheque only if the property passes all these tests. Keep in mind, a small explore can save your huge bunch of money and a whole lot of mental torture.

realestate-Scams

  1. Verify Builder’s Track Record

It is very usual for any investor to get attracted towards low pricing and profitable schemes. But what is the use of such schemes when the project never gives the promising result in future or what to do if if project never sees the light of the day?  Therefore, you must check builder’s past record of delivered projects. This way you can reduce your construction risk.

  1. Verify Complete Details of the property:

While buying property you must have complete clarity on documents and transaction details. Because one popular saying goes, “The devil is in the details”!!!

For under-construction property:

  1. Ask for Builder-Buyer Agreement before investing and check all details,
  2. Ensure that the builder has taken all approvals. Invest in a pre-launch project only when you are sure that the builder will get approvals soon. Otherwise, it is better to wait for approvals,
  3. Understand delay clauses and make sure that the builder is committing a reasonable penalty in case of any delays.

For ready-to-move-in property:

  • Involve a professional agent (Such as http://homemantra.co/)  to ensure smooth transaction,
  • Check all property papers to ensure title ownership, that if there is a loan on the property and that property taxes are paid up,
  • Check Agreement to Sale and payment terms.
  1. Don’t take the decision in hurry

Never take a hasty decision. Complete your time and think first then invest only where your basic criteria are met.

If you have a doubt, ask your agent or the marketing team of the builder. For eg. if the builder has obtained approval, ask for the approved layout else ask for a copy of approval application if the property is at pre-launch stage. You should not repent later for ignoring minor details.

  1. Take Professional Realty Advisory Help

In case you are not able to finalize the deal or you do not have expertise to conduct due diligence on property, you should always seek professional help from a real estate expert or a legal counsel. You will save lakhs of rupees in interest and rental costs that you will incur if your project is delayed or never takes off.

  1. Get Assurances in Writing

During the construction phase, the builder will give you oral assurances, which have virtually no meaning. Therefore, it is important that you get everything in writing. Ask them to communicate with you through their official email id or on their letterhead. So then you can compare the same with their advertisements and brochures.

  1. Better Choose Bank Approved Projects

Banks perform their own due diligence before approving a project. So, by investing in a bank approved project you can reduce your risk to a great amount.

  1. Try to Find Personal Suggestions

If you can get personal recommendations from any of your friends, family members or colleagues about their experience with a particular builder or a particular real estate agent, it is always better than relying only on online opinions, many of which may be biased.

Homemantra. co

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