5 Common Property Frauds

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Title deeds and clearance:

There have been cases where scammers have duplicated title deeds of vacant or disputed projects and sold them to innocent buyers. The scammer will use false paperwork to pose because the property owner, registers cast documents transferring a property to his or her name, after which gets a new mortgage in opposition to the property.

Thus, you will need to check that the title deeds and paper work are free from any encumbrances. You’ll be able to check these link documents on the office of the sub-registrar. Make sure that there is no encumbrance, pending legal case, property dispute or lien on the property. When you make the initial cost on your house, guarantee to get the allotment letter if it’s a builder and an “Agreement of Sale” in case you are shopping for an present property. Your purchase of property can be completed only after the sale deed is executed and registered with the registrar. The sale deed is a proof of your ownership.

Executing the acquisition and comply with up actions

Be sure your builder sticks to the possession date that he has promised because often builders delay when they do not discover consumers or their assets dry up leading to no cash left for completing the project. Getting possession of your house as soon as doable has a number of benefits, one being the tax advantages that kick in after possession. The period prior to the possession date has a different tax therapy as pre-development period.

When you get possession of your house, the builder is answerable for maintenance of the building for a period of 18 months after the Occupancy Certificate (OC) is given. By the top of the 18 months, the builder will provoke the formation and registration of the society, which will elect its representatives and take over the management of the society from then on. Once the society is shaped, telephone and electrical energy payments will probably be given in your name. Hence, it is necessary to ensure the society is shaped within the stipulated time.

Deliberate Delays:

Regardless that the builder might have a handful of successful projects, it is very important make sure that the builder lives up to his guarantees in the current projects. Project delays and disappearing builders are a standard occurrence in real estate fraud. One strategy unscrupulous builders resort to is to delay project completion deliberately till they get requisite number of buyers. But others divert the cash pooled from one project to another, delaying both projects in the process. One technique to forestall this is to go for projects which were accepted by banks. Not only does it put the builder below obligation to finish the project in time but your tie up for finance is also taken care of. Another way to ensure it’s to see if there’s a delay clause in the agreement and that the development levels with timeframes are clearly included in it.

Delay in utilities:

Not only project delays but additionally delay in approvals and sanction for utilities can depart buyers wringing their fingers in despair even after possession. Thus, it is best to check for sanctions for utilities like electricity connection, water connection, etc. have been pending. Issues like plot in unauthorized structure or sub-divided land, building with land use violation, setback violations, flooring space violations, etc. detected after agreement formalities and development have commenced could lead to delay in different downstream approvals and title registration.

Deviation from Approved Plans:

One important thing to ensure while shopping for a property is to ensure that it is just like what the builder had promised. Many projects when accomplished take a number of deviations from the accredited plan by way of widespread areas. This possesses an enormous challenge for many buyers who must compromise on frequent amenities, areas, promised luxuries and even on core project amenities like dedicated parking space regardless of having made additional payments for the same. The very best to prevent this is to get the assurances in black and white.

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