In the present day and age, the real estate business is growing at a fast pace. And since it is gaining much recognition, more and more people are hopping onto the bandwagon, increasing the chances of property frauds in Pakistan. Hence you need to be fully aware and alert before making any investment or purchase decision.
There are various new and advanced housing projects that are currently under construction all over Pakistan, and this shows that the property market is booming. The property business has always required buyers, sellers, and investors to be highly cautious when making a purchase and to be aware of scammers, as spotting a real estate scam is not easy.
So, to help you in the game, we have compiled a list of the following property frauds that you need to be careful of if you live in Pakistan.
When buying a property or investing in real estate, many people turn to real estate agents and hire the services of these professionals to make the process easier. However, fake and unreliable agents are one of the most common property frauds in Pakistan, and any real estate agent you hire needs to be vetted before trusting them.
A background check is recommended alongside a visit to their office and website, provided they have one. Verified and trusted realtors can be found via various real estate websites that connect buyers to brokers and can help them find the perfect property through reliable real estate agents.
False listings are another type of property fraud in Pakistan that plague the real estate industry. These self-claimed real estate portals do not have any kind of verification mechanism and are ideal for any fake agents as it makes their work even easier. Fake listings increase the chances of a potential buyer or seller getting in touch with a broker. Once contact is established, the broker might try to move the client towards the deals that are most profitable for the broker without caring for the client’s best interest.
It is important to beware of such websites as listings that are priced low are often to attract unsuspecting buyers. If the price of a listing is significantly lower or if it seems too good to be true, it is essential to investigate the property and all related details to ensure that it is not a false listing.
It is important to be beware of scams as they can come from the buyer’s or seller’s side. One scam that sellers often face is dealing with someone who is a fraudulent property buyer. Such scammers use various techniques that can include fake payments and getting the owner to sign the papers without paying.
To avoid this, it is recommended that sellers meet the buyers in person and obtain all of the necessary information, including proof of identification, before making any deals regarding the property or the financials involved. Do not hand over any official paper or document that details the property possession or ownership until the deal has been finalized and all payments have been received. There are some telltale signs of fraudulent property buyers, such as the buyer only making contact via email, calls, or messages and being out of the country when a meeting needs to be arranged.
Documentation is one of the most important parts of any deal involving real estate and property. It is important to verify the documents through appropriate means. Deals with fake documentation involve multiple risks as they create extra costs, potential legal liability, and almost always adversely affect your reputation.
Property lawyers and law institutions can assist in verifying the authenticity of documents while also helping people to understand the legalities that are involved when a deal is being made. It is essential to not sign any documents without getting them checked from a reliable source and to be wary of forgeries.
One of the biggest mistakes that any person can make is investing in a property that they have not visited. While investing in projects that have not yet been completed is fairly common, it is completely different from putting money into a project you have not heard about or visited.
People, at times, feel inclined to buy or rent a property that they have not visited in person to avoid the time and expense of traveling, especially if the property is located in another city. However, this makes them much more susceptible to a scam. While technology has advanced and allows for things like GPS, maps, pictures, and even virtual tours, you should visit the location yourself and perform a thorough inspection in person before finalizing your decision.
It is almost foolish to blindly follow the advice of property agents when you’re considering to buy, sell or rent any kind of property. It is paramount to do the required research to find the actual market value of any property. Some real estate agents might overstate the value of a property to increase their own profit margin.
Searching for properties that are similar to the one you are interested in and getting advice from multiple reliable realtors can provide a more accurate idea of the current market situation and the actual market value of the property.
In nearly all cases, investing in a property requires substantial investment, and people want their money to be safe and secure. Being a means of investment, people also want a return on their money and want their investment to be profitable in the future.
Researching about the details of a project generally reveals if it is a safe and profitable investment. This can include the group behind the project, the architect, the location, and other factors which can influence the demand.
Real estate and property fraud can take multiple forms. There are various steps that can be taken to prevent being a target of property fraud in Pakistan. One of the most important things is not to be in a rush to finalize any real estate transactions. Take the time to verify property information before making any commitments.
Conducting a thorough investigation, getting an appraisal, and only working with real estate agents that are verified and authentic can greatly decrease the chances of being scammed when dealing with property and real estate. It is advised to invest in only reliable projects like that offered by Chapal Builders and developers. With such safer investments, you can rest assured that you get the best value for your hard-earned money.