Common Scams 
What are Real Estate Scams?
Buying a dream home can turn into a nightmare if you are not careful. Everything can be destroyed with a real estate scam.
I magine you have been saving your money to buy a house for yourself. You look forward to having a place of your own. A person tells you about a place they know and shows you pictures of it. “This is one of the best properties out there and you’ll get it at a much better price than others. However, a lot of people want to buy this house so you have to pay immediately to secure it”. You like the offer so you pay them money. Then, they disappear. The person doesn’t pick your calls, you realise that the property didn’t exist to begin with or you never actually secured the house with your payment.
This is a real estate scam.
Four promoters of a real estate group were arrested under the allegation of money laundering and home-buying fraud. They had several projects spanning across Delhi-NCR, Lucknow and Greater Noida. Several people invested in these properties, home-buyers and investors alike, based on promises of timely delivery of homes. Unfortunately, the construction stalled and kept getting delayed, leaving the buyers hopeless with their investment gone. The accused promoters were then arrested by India’s Enforcement Directorate.
To add on to this, a sense of urgency and panic is also created by the agents or promoters, that pressurises you into paying immediately.
How Real Estate Scams Happen
Real estate is becoming a sphere with an increased number of scams because the home ownership market is increasing. With the demand rising, frauds are also occurring more often. Huge amounts of money are involved with scamming just one person. It’s also easier to trick home-buyers since investing in a house means complicated transactions involving several documents and processes that many people don’t fully comprehend. Here are some ways these scams happen:
1. Projects being delayed: Several buyers are left waiting for possession of their homes because the construction remains incomplete. The money is collected from them and is used for other purposes or on other projects.
2. Fake Titles: Several people pretend to be real estate agents or owners and create fake documents, extracting money in the process.
3. Legal disputes: Legal disputes are often intentionally created to further delay giving possession of homes to the investors, while already taking their money to begin with.
4. Rental scams: Money laundering and fraud can also occur while renting a property. The scammer can pose as a landlord and extract money through security deposits or booking fees.
Oftentimes, people also pose as promoters or developers. To create an impression of authority, scammers go to the lengths of creating logos, renting an office, building a website- anything to make the victims believe that this is a genuine business and the right place to invest in. It is important to always double-check on such websites since online listings are also a prevalent way for real estate scams to take place.
What to do if You Have Been Scammed
If you have been caught in a real estate scam, then your first action should be to file a complaint with Real Estate Regulation Authority. If this occurred online, then a cyber crime complaint can also be lodged or you can call the National Cyber Crime helpline.
Consumer courts are also a good place to approach in the case of unfair trade practices by the builder or poor and delayed service. Legal notices can also be issued.
Real estate scams are intimidating because of how often they can occur and how easily, if one is not careful enough. Investing in a property or staying under a good roof, may be an aspiration for many so it’s important to be aware of what you are spending your money on. Ask for documents, verify backgrounds and do not be in a hurry to pay. Property transactions don’t deal with small amounts of money so one should be responsible and take their time during the investment process.
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