For home buyers, who invest their hard-earned money in any real estate project, no amount of caution is too much. Here are some precautions you must consider while purchasing property to avoid real estate scams: Take a glance at them!
- Home buyers must ask for original land and property documents. When documents are not available, then take it as a red signal and stop the business right away. There are chances that title of the seller property is unclear or there could be mortgage or a claim over the property.
- You must check for past encumbrances or loans if any. The title of the property vendor also must be clear.
- You should review for approved layout and building plans with the number of floors available.
- You must ask for the photocopies of every link document of title deed those that are linked to the house for sale.
- You must ensure whether proper stamp duty has been paid.
- You could review the transfer fees along with the charges for registration and stamp duty that are to be paid. You should also examine for property and water taxes along with society, electricity and maintenance charges.
Top Tips for Home Buyers
Hire services of a legal counsel: It is important to hire the services of a legal advisor and review all property-related documents with him before signing on the dotted line with the real estate builder. With the advisor’s help, make sure that all government approvals are in place. If the builder fails to present you the thorough set of approvals or only has partial approvals in place, think twice prior to investing in such a project.
Check builder’s experience: Make sure you do your own background investigation and research on the builder and their reliability. Use the internet as well as social media to your benefit. Check their completed projects list, track records and ensure that they are members of real estate bodies such as CREDAI.
Seek personal references: Reputation management of developers is so aggressive that they are quick to evade any negative opinion online, or even threaten buyers who are forming pressure groups against them. Seeking personal recommendations is a good idea of dividing the wheat from the chaff.
Take bank-approved projects: If any leading banks have signed the project, chances of real estate scams (fraud) are relatively lower since banks do their own background check and due diligence before coming on board as home financing partners. You should ask for the NOC’s of all the concerned departments from your builder or seller.
Delay conditions: Before signing the sale agreement with the developer, ensure that there is a delay limitation in the agreement and that the construction stages with time frames are clearly involved in it, along with a photocopy of the approved project. Keep a regular check on the progress of the plan.
In current times, many builders have built goodwill from a fistful of good projects initially, only to default on outlines launched later. Some are even known to use browbeating strategies by scaring financial specialists or by including a condition in their agreement forbidding them from publishing anything unfavorable about them. Hence, a healthy dose of caution can go a long way in protecting your property investment from frauds and real estate scams that proliferate in the real estate industry today.
In a nutshell, it is important to verify each and every aspect of the sub-registrar office and take an informed decision after taking legal advice from an expert.