avoid Fraud Real Estate Property

How to avoid Fraud Real Estate Property Scams in 2021?

Real Estate

Frauds in real estate are a nightmare for homebuyers. Most of them might have invested a whole life’s savings on the home. Imagine the disruption a property scam can make in one’s life and future. Every investor must be cautious while choosing the builder. The swindlers normally let out some indications inadvertently that might help you in identifying them before falling prey.

Notwithstanding, the formation of the Real Estate Regulatory Authority (RERA) has been helpful for reducing the possibilities of swindling in the sector. The regulatory body has promulgated a set of regulations. To control the real estate agreements and prohibit any developer from taking unscrupulous advantage of the homebuyer.

We reiterate that you must do a comprehensive study of the builder. Instead of believing their claims in the websites and advertisements. The real estate developer should not be believed blindly even if a star celebrity is their brand ambassador.

Scams that Shook the Real Estate Sector in Kerala

Unfortunately, a few unreliable real estate firms have blemished the image of the industry. Causing the customer to look at the builders with cynical eyes. One of the most discussed frauds was in 2011, by a renowned real estate firm. They had allegedly collected around ₹100 cr. But, neither completed nor handed over the projects to the customers.

The homebuyers approached the then Chief Minister of Kerala Mr. Oommen Chandy for intervention. Police investigation revealed that the owners have withdrawn all the money from their account and are absconding. It is difficult to retrieve money in such a scenario. It is a civil offense and the legal proceedings themselves would take years, even if the frauds are arrested.  The present status of the case is not known.

Another massive scam occurred in 2018, in which a builder with their head office in Trivandrum allegedly cheated the investors of ₹130 crores. About 2000 homebuyers lost their money. Kerala High Court ordered a crime branch probe to unearth the details and book the culprits. The result of the crime branch investigation is not available in the public domain.

You might be aware of the demolition of five building projects in Kochi, for not abiding by the green norms. The unlawful way the builders’ obtained the approval was the reason for the strict verdict from the Supreme Court of India.

It is a difficult task to get back the money once you have paid the real estate developer. The court case may take years, decades, to reach a verdict. Precaution is the best way to avoid such circumstances.

Things to Check before Finalizing the Real Estate Deal

You are going to take one of the biggest decisions in life and it should not be hurried through. It is crucial to understand the extant policies formulated and directed by RERA, the financial status of the builder, their previous projects, and so on. Although we cannot guarantee that the deal would be foolproof if you undertake a meticulous analysis, it would definitely reduce the possibility of you being a fraud.

Study RERA Regulations – We have gone through the regulations by RERA. Those are comprehensively prepared considering all the facets of real estate dealings. Ensuring transparency from the builder and offering an upper hand to the customer, the regulations are remarkably beneficial for a new homebuyer, who might not be aware of the real estate sector. The RERA regulations and policies are available in open source. You must read the same before dealing or negotiating with the builder.

Analyze the Financial Status of the Builder – A realistic statistics on the financial condition of the builder or real estate developer is extremely useful. It would reveal to you of any possibilities of bankruptcy, offering a better insight into the debts they have. Obtaining the exact financial details may not be possible. Still, you can access the shared details and project status that is available in the public domain.

Check the Track Record – The projects they have completed, the ongoing projects, and the future projects will be indicative of the builder’s capabilities. Contact your builders without any delay if you are looking for apartments for sale in Kochi or any other location. Check the time frame, in which they promise to complete the project. And whether they have been strict with their project deadlines. Examine the delays. Slight delays in project completion and handing over might be acceptable. Nonetheless, undue delays and constant slips might be suggestive of a lame attitude and improper organization. 

Opinions from the Existing Clients – It is best if any known person is their customer. Let it be relatives, friends or colleagues. A first-person experience would be useful in getting a clear view of the builder. Discussion with market experts also would be beneficial in this regard. We understand the complexities you may encounter whilst checking out with the existing customers, discussing with professionals, etc. However, you need to put in the effort, so that your money is spent on the best project. And it is not going to the hands of cheaters.

Reviews and Ratings Online – Online reviews and ratings may throw some light concerning the performance of the real estate developer. You should segregate genuine reviews from the reviews of the PR team and consider only those.

Therefore, think and invest wisely. Choose only the trusted builders.

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