Top Real Estate Scams to Avoid in India

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Top Real Estate Scams to Avoid in India: A Homebuyer’s Guide

The Indian real estate market is booming, attracting both seasoned investors and first-time buyers. However, along with the growth, there's been a rise in fraudulent activities and property scams. Falling into a real estate trap can cost you not just money but peace of mind. Here’s a list of common real estate scams in India and how to protect yourself from them.

1. Fake Project Listings

Many fraudsters list properties that either don’t exist or aren’t up for sale. They use social media, classified sites, or fake websites to lure unsuspecting buyers with attractive prices and offers.

How to avoid it:

Always visit the site in person.
Check RERA registration of the project.
Avoid paying any advance before verification.

2. Title Fraud and Multiple Selling

Some scammers sell the same property to multiple buyers or produce forged title deeds.

How to avoid it:

Hire a property lawyer to verify title documents.
Obtain Encumbrance Certificate to check ownership history.
Register your purchase legally to avoid future disputes.

3. Unapproved Layouts and Illegal Constructions

Builders sometimes start projects without proper approvals from local authorities or build on agricultural or disputed land.

How to avoid it:

Ask for land use certificates and local municipal approvals.
Verify construction permissions and sanctioned plans.

4. Project Delays and Non-Delivery

Many buyers fall prey to builders who collect huge sums but fail to deliver the property on time—or at all.

How to avoid it:

Choose RERA-registered developers.
Read the builder’s past project reviews and delivery track record.
Insist on written agreements with timelines and penalties for delays.

5. Fake Brokers or Agents

Unregistered or unverified agents can misguide buyers or demand excessive commissions.

How to avoid it:

Work only with certified or RERA-registered agents.
Always get terms and commission details in writing.
Verify the broker’s identity and experience through references.

Conclusion

Real estate frauds in India are becoming more sophisticated, but with awareness and due diligence, you can make safe investments. Always consult legal and real estate experts, verify documents, and use authorized channels before making any property transaction.