5 Biggest Real Estate Scams & How to Avoid Them

You must be cautious if you're about to make your first house purchase. Scammers can be found anywhere in real estate, from the credit score to the examination and in legal and legislative documents.

Buying, selling, and owning a home can be some of the most financially taxing activities most individuals and their families undertake. Fraudsters and scammers may try to exploit and are always in a run to misguided people and get max advantage by heisting as much money as they can in their fraudulent activities.

Here are 5 types of scams that are most common in real estate.?

1- Unreliable Agents

When purchasing a property, it's crucial to work with a real estate agent with whom you have total trust. You need an honest agent because there are so many scammers operating in the real estate industry.

If you want to avoid being scammed, here are some considerations to determine if your real estate agent is legitimate.

• Check working agent history: How long has he been in this field?
• See if he’s proper market knowledge or not.
• Meet his previous clients if possible.
• Check if he is an authorized dealer or agent from the proper estate association and if he is working independently or linked with a well-known real estate agency.

2- One Land - Multiple Claimants

Since you and many others like you remain unaware of the history of the property you are buying, some dishonest estate agents easily scam you.

To avoid such scams, you must talk to people in the neighbourhood and ask about any unusual activity. Also, you can ask the agent to show you the file with property papers.

You can also protect yourself from this con by using transparent methods to confirm the owner's identity. Getting advice from experts can help narrow down how you should collect data.?

Cross-check the property doc with your Potwar Counsel, either traditionally or digitally in some areas of Pakistan.?

The estate agent should provide all relevant contact details at the point of purchase, vendor recruitment, or cash transactions. Inquire about similar details from a purported proprietor.

3- Fake Property Listings

You may have seen some astonishing listings when searching online for a home to buy or rent. But how do you know which ads are legitimate and which are simply trying to take your money??

You can check if the listings are fake or consider the following things.?

1. Listings that are missing important information, such as pictures or addresses,
2. Listings that have no owner's contact details should be avoided.
3. Listings with a price that is also too low compared to the market.
4. The owner demands money first to provide access to or information about the property.
5. Photographs which does not correlate with the area, etc.?

4- Fake Documents

Forged documents are a growing concern. No matter what is done, you will lose the property. Agencies, registrars, and property owners are the three pillars of our protection against it.?

Property rights are everyone's responsibility, and each group has a unique responsibility to ensure that our assets are safeguarded.

5- Fake Buyers

Scams are not only from agents' sides but also cause of fake buyers.?

A fake buyer can scam you by giving you one-third of the total price and, after taking possession of the property, refuses to pay more and claims that property to be theirs. Sometimes provide fake details of them, and even after they completed their deal, they offer you counterfeit cheques or currency notes.

To avoid these scams, ensure the complete payment before handling the documents and visit the bank to ensure the cash withdrawal or disposit.

Bottom Line

Finally, trust in yourself and be transparent. Spend the time to verify the identity of the purchaser, lender, or any third party who engaged in your deal, and if you feel something wrong, don't succumb to their demands for an action you'll regret afterward.