They are of the opinion that ignorance is bliss. Although being uneducated about some possibilities may result in significant financial losses for you, this is especially true in the case of the real estate business. There are a number of con artists waiting to take advantage of your lack of knowledge about the system. Before investing your hard-earned money in a real estate transaction, you must have a thorough understanding of the market’s operation in order to protect yourself from being duped by con artists.
Let’s take a look at some of the most common types of fraud you can encounter in the real estate market:
Forgery of paperwork: A fraudster takes advantage of the complete lack of knowledge on the part of potential clients and offers them a complete set of fictitious or falsified documents pertaining to the property. These documents have no legal standing, and as a result, the buyer suffers a significant financial loss as a result. As a result, it is recommended that all papers be confirmed with the sub-registrar office prior to finalizing any transaction.
Fraudulent Power of Attorney: It is possible that the first owner of the property you are purchasing had been granted a general power of attorney (GPA) over the property. It should be noted that GPA is extremely vulnerable to fraud because the same property can be sold to a number of different consumers at once.
Buying and selling mortgaged property: There have been instances in which a vendor has sold a home that is already financed with several banks to potential buyers and then vanished. As a result, the new property owner faces a lengthy legal battle to obtain ownership rights to his or her property from the lending institutions in this situation. As a result, it is highly suggested that you check the ownership rights of the property with the sub-office registrars before purchasing.
The unauthorized expansion of the property: Encroachment has been one of the most frequently encountered challenges in the investigation of property fraud. Numerous instances have been documented in which the seller has illegally expanded his or her dwelling or encroached on the property of a neighbor. If you later purchase the encroached territory, you will become the legal owner of the land. You may find it difficult to obtain your money back from the seller later on after you realize that you are not the legal owner of the encroached territory. This is due to the fact that the seller is most certainly long gone from the scene at that point.
Questionable agreements: It is likely that several of the terms and conditions listed in the seller agreement are problematic and of a questionable type in nature. It is possible that certain characteristics of the property, such as the services provided, the total area, and ownership rights, will differ in their actual meaning from what is stated in the agreement.
Scams involving land ownership have been observed in a number of instances when the land being sold is not actually owned by the vendor. Pick an undeveloped property in a remote location that is primarily owned by the government, and then sell the land to unsuspecting buyers using fictitious ownership paperwork that they fabricate. As a result, before parting with your hard-earned money, you should always double-check that the seller’s ownership rights are accurate and legally acceptable.