While investing in a property in Pune is no doubt a rewarding decision, the risk of encountering real estate scams is something that buyers need to be vigilant about. This blog aims to educate potential buyers on how to ensure their investment is safe and sound by spotting real estate scams in Pune. In addition, we will also be introducing you to Kohinoor Group, Pune. Read on.
Here’s what common real estate scams look like -
1. Fake Listings
Fake listings are one of the most common real estate scams. Scammers create enticing property listings with attractive prices and features that are too good to be true. These listings often appear on various real estate websites and social media platforms. Once interested buyers contact the supposed seller or agent, they are asked to make a deposit to secure the deal, after which the scammer disappears with the money. So, if you are looking for an affordable home in Pune, ensure that you are transacting only with a reputed builder.
2. Title Fraud
Title fraud occurs when a scammer forges documents to transfer the ownership of a property to their name or an accomplice’s name. They can then sell or mortgage the property without the real owner's knowledge. Such frauds often have multiple sellers or buyers. This type of fraud takes a long time to resolve legally, and turns out to be financially and mentally stressful.
3. Fake Pre-Launch Offers
Developers sometimes offer a property in Pune at discounted rates during the pre-launch phase. A pre-launch phase is when the project is still to be launched officially. While this can be a legitimate way to invest early, some scammers use this as a tactic to collect money from multiple buyers for non-existent projects,and they just vanish with your hard earned money.
4. Bait-and-Switch Schemes
Have you ever heard about this term? Even if you haven’t, you must have come across a scenario where buyers are lured in with the promise of an attractive property, but once the buyer shows interest, they are told that the property is no longer available. The scammer then tries to sell them a less desirable property at a higher price.
5. Unregistered Agents
Dealing with unregistered agents can be risky. These agents often operate without the necessary licenses and regulatory oversight, making it easier for them to engage in fraudulent activities. They may disappear after taking an initial deposit or provide false information about the property.
So, how do you avoid being trapped into these scams? Here are a few tips that will help you in investing in the right property in Pune, without being entrapped into scams.
1. Research is the Key
Before making any financial commitments, conduct thorough research on the property, the developer, and the agent. Check online reviews, visit the developer’s office, and talk to previous buyers if possible. Look for any red flags, such as a lack of verifiable information or negative feedback from multiple sources.
2. Verify Property Documents
Always verify the authenticity of property documents. This includes the title deed, occupancy certificate, building plan approval, and other necessary permits. Hire a reputable lawyer to scrutinize these documents and ensure they are legitimate.
3. Trust only Renowned Agents
Only work with licensed and reputed real estate agents. Check their credentials and verify their registration with the appropriate regulatory authorities. A credible agent will have no issue providing proof of their legitimacy.
4. Visit the Property
Never finalize a deal without visiting the property in person. Inspect the property to ensure it matches the description provided. This also allows you to check for any potential issues or discrepancies that might not be apparent in photos or descriptions.
5. Be Wary of Unusual Payment Methods
Scammers often request payments through unconventional methods such as wire transfers or cryptocurrencies. Always insist on using secure and traceable payment methods, such as bank transfers or checks. Be cautious if the seller or agent pressures you to make immediate payments or deposits.
6. Check Project Approvals
For new projects, verify that the developer has obtained all the necessary approvals from local authorities. This includes land use permissions, environmental clearances, and construction permits. Projects without proper approvals are at a higher risk of being fraudulent.
7. Get Everything in Writing
Ensure that all agreements and promises are documented in writing. Verbal agreements can be difficult to enforce legally. Make sure the sale agreement includes all terms and conditions, payment schedules, possession dates, and any other critical details.
8. Trust Your Instincts
If something feels off, trust your instincts. Scammers often rely on creating a sense of urgency to pressure buyers into making hasty decisions. Take your time to evaluate the deal thoroughly and do not rush into any commitments.
Remember, the key to not falling into any real estate scams is to be patient, conduct a thorough research, and trust only a renowned developer. One such name is Kohinoor Group, Pune. This real estate brand is one of the fastest growing real estate brands in Pune, and has an array of landmarks in Pune’s prime destinations.
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