Real estate is one of the major investments in life, and like anything of value, it attracts both genuine opportunities and deceitful schemes. While most of the real estate deals are fair enough, scams are unfortunately very common these days. It’s important to stay updated and be aware when investing in real estate. Here are some tips on how you can protect yourself from becoming a victim of common real estate scams.
The importance of seller verification
Impersonation is a common practice in real estate scams. Whether you’re buying or renting a property, always make sure the seller or agent you’re dealing with is legitimate. Scammers can impersonate agents or owners, sometimes using fake documents. You have to request to see the seller’s details or check their references. If they’re hesitant or not okay to provide proof of their identity/ownership, that’s a major sign.
The risk of upfront payments
A frequent type of fraud involves asking for an upfront deposit or fee in advance before you can even view the property. No matter what they use, like a “processing fee,” “application fee,” or “reservation fee,” always be cautious if you’re asked to pay anything upfront. Genuine sellers and owners will rarely ask for money before a contract is signed and agreements are set.
Why is the RERA number a must?
Before you make any moves on a property, always verify the RERA registration number of the developer, builder, or agent. The RERA number guarantees that the builder or developer is officially registered and authorized by the government. You can easily hop onto the official RERA website to confirm the number and ensure that the project is legal and following the rules. Scammers often try to bypass RERA registration or provide false numbers, so it’s essential to cross-check this information. This crucial step can save you from getting caught up in deals involving illegal or unapproved properties, offering you peace of mind knowing that your investment is protected under the law.
Getting fooled by unrealistic prices
It’s intriguing when you see a listing that seems too good to be true. Perhaps the price is ridiculously low or the property seems to be in a prominent location. Scammers often use these “too good to be true” deals to hook unsuspecting buyers. If you come across a listing that seems unusually cheap, do not hurry it. Always take time to verify the legitimacy of property and ask questions. Always trust your instincts – if it feels off, it probably is.
Consistency in the listing of properties
Sometimes, scammers list the same property across various platforms but with slight variations. To safeguard yourself, check for consistency in property details such as price, size, amenities, etc across different websites or listings. If you notice discrepancies in the information presented across multiple platforms, it’s worth doing some more digging.
In-person property inspection
It’s simpler than ever to browse properties online, but pictures can sometimes be misleading. Always schedule an in-person visit before making any decisions. This gives you a chance to see the property firsthand and check for any discrepancies between the listing and the actual condition. Scammers often post pictures of properties they don’t own, so seeing it in person is the best way to ensure you’re not being duped.
Knowing your legal rights
The process of buying or selling property involves a lot of legalities, and unfortunately, scammers rely on people being unaware of their rights. It’s really important to get to know the laws surrounding property transactions in your region. This will not only help you spot potential scams but also ensure that you have the legal knowledge to protect yourself if things don’t go as planned.
Remember, a bit of watchfulness goes a long way in protecting your investment and ensuring you get the property you are entitled to.