Real estate has become the most flourishing industry in Pakistan. With a boom in the real estate market, the ratio of common real estate scams in Pakistan is also increasing every day. Therefore, you need to analyze the real estate market before making an investment to avoid property scams in Pakistan. The proper research will help you to save money by avoiding fraud in the property market.
Scamming in real estate is a factor that can’t be neglected because you can lose your hard-earned money by purchasing properties in collaboration with scammers. It is a fact that every industry is facing various challenges that can affect customers badly. The sellers can also try to sell fake properties by showcasing the bogus agreement. Common people can’t easily know about scams. Therefore, we’re going to discuss common frauds in property buying for our users to avoid them.
Top Real Estate Scams in Pakistan
We have listed down the most common scams in the real estate market that are faced by buyers.
Unreliable Real Estate Agents
At present, several unprofessional people are pretending to be reliable realtors in Pakistan that trap loyal buyers. They will make fake promises and offers to get your money in the form of a down payment for the property. This is one of the common real estate scams in Pakistan.
Several people believe in unreliable agents without proper investigation. Moreover, brokers and builders also come forward with fake promises by offering attractive discounts on instant booking. The end-users and investors face this property fraud in Pakistan due to a lack of knowledge about real estate.
Fake Property Documents
Fake documentation of property is also part of real estate fraud in Pakistan that damages the revenues of buyers. Real estate brokers and even builders present fake documents of the property to the buyers. The sad fact is that customers make the investment without asking for the original documents of the property. You will not be able to claim as an owner and can’t sell to anyone.
There are different housing societies in Pakistan without legal status. The people also get trapped by this one of the top real estate property frauds in Pakistan due to the top-notch promotion of illegal societies. It is also a fact that builders show the NOC of approved land and allocate the plots to the customers on the unapproved land.
Fake Development Update
The realtors also use a trick of fake development status to attract potential buyers. This is also included in the list of real estate scams in Pakistan because builders don’t tell about the actual on-ground development.
The developers always try to convince the investors and end-users that development is going at a smooth pace by constructing the main gate, boundary walls, and roads. Therefore, buyers get trapped easily in this type of property scam in Pakistan by considering that such schemes are best for living and investment. However, buyers have to wait for the development of main works such as electricity, water connection, and sewerage system.
Fake High ROI
There is high competition in real estate where developers are promoting the high artificial return on investment to sell the properties at a fast rate to meet the financial needs for development. Fake ROI is also one of the top real estate scams in Pakistan to sell properties at a high price list.
Real estate scammers use this mouth-watering trick to attract property buyers in Pakistan by offering overvalued prices for the available properties in the projects. This is a real estate marketing scam in Pakistan that uses artificial ROI to attract property customers. The builders and realtors advertise the properties through the fake market value in Pakistan.
Fake Real Estate Marketing
The builders do the fake marketing of properties to sell the properties at the fastest rate. Therefore, buyers get attracted to this one of the common real estate property scams in Pakistan. The builders make fake promises at the time, selling different types of properties.
The builders offer fake area views, facilities and amenities, and attractive discounts. Therefore, innocent customers buy their properties without knowing the actual status of the housing societies by believing in the realtors and builders.
Selling A Property To Several Customers
This is one of the most common types of real estate scams in Pakistan that is complicated for the common people. The developers and realtors keep selling a single property to multiple buyers in the presence of different scamming tricks, such as fake documentation. Therefore, real estate buyers lose money by purchasing a property that is already owned by someone.
Real Estate Property Ownership Scams
Fake possession is also one of the common property frauds in Pakistan that is being faced by buyers in the real estate industry. The scammers in the property market satisfy the customers by offering ownership of the property at a particular time. The developers do not deliver their projects properly due to invalid documentation.
Therefore, they don’t transfer ownership to the buyers who buy the properties. Some of the properties are not even available on the ground. The buyers who don’t visit the housing scheme face this property scam in real estate.
How to Avoid Common Real Estate Scams in Pakistan?
People are trapped in real estate scams because of no knowledge, unprofessional guidance, and improper research. Therefore, it is important to identify and avoid scams through the comprehensive guide.
Reliable & Professional Real Estate Company
You need to consult with a professional and reliable firm like Makaan Solutions to avoid real estate scams in Pakistan. The reliable team of real estate consultants helps you to buy properties in authentic housing schemes. The important steps for avoiding scams are mentioned below:
- Don’t consult with new realtors
- Check the portfolio of the real estate company
- Check the social media accounts and website of the company and realtors
- Ask for license and registration of property marketing website
- Visit the physical office of the real estate marketing company
It is a crucial step in avoiding real estate scams in Pakistan by verifying the documents before buying a property. These steps help you to avoid this scam:
- Get help from a real estate advisor for documents verification
- Check the stamp and registration of documents
- Keep copies of the seller’s ID card and POAs
Check NOC of Society
You need to know about the legal status of housing schemes to avoid the chances of being trapped in Pakistan real estate scams. You can access the office of government authorities such as CDA, LDA, RDA, SBCA, and MDA to know about the NOC status of housing societies. You can check the legal status by yourself through these steps:
- Visit the official government websites of development authorities to check the NOC status
- Check the documents of land permission and development approvals
- Check whether a housing project includes the Sui Gas, water, and electricity
Check Developers History
You must check out the developers’ portfolio before purchasing a real estate property. The developers’ history enables you to avoid one of the real estate scams in Pakistan. You must follow these steps to buy properties in the projects by incredible developers:
- Check developers’ performance in the previous projects
- Analyze the time span of completion in the last projects
Visit The Property
You must visit the property on the ground to avoid fake marketing and know about the current development status. It is crucial to visit the property due to the following factors:
- See the location of the plot
- Analyze the current development
Check The Ownership of Property
Selling a property to different buyers is one of the top real estate scams in Pakistan that can be avoided by deeply checking the ownership of the available property. It is easy for you to check the ownership by analyzing the documents of property from the office of the registrar or sub-registrar.
We have discussed the real estate scams in Pakistan with the ultimate solutions that help you to make a profitable investment in the legal housing societies by the reliable developers with the help of the reliable real estate firm Makaan Solutions. You can get rid of property scams in Pakistan by investing in top-notch housing societies such as Lahore Smart City and Capital Smart City.
Common Real Estate Scams in Pakistan for Buyers
If you want to know about Common Real Estate Scams in Pakistan for Buyers Contact Makaan Solutions. Our Sales Executive Officer will provide you with all the latest information. Starting from consultation to choosing the property, and from booking to owning your dream property. For further details, please do not hesitate to contact us with the below-given information: