Common Property Scams and How to Avoid Them: Protect Your Life's Biggest Investment

Property scams are sophisticated and costly. Learn how to identify red flags before losing your investment to fraudsters.

Fake Ownership and Title Fraud

Scammers forge papers and "sell" property they don't own. You pay, get fake documents. Real owner appears later. You lose money and property. Prevention: Verify ownership from municipal records. Get title insurance. Have lawyers check title chain. Never pay before legal verification complete.

Bait and Switch

Photos show beautiful property. You visit and it's different/worse condition. Or wrong property entirely. Agreement is vague about which exact property you're buying. Prevention: Visit property multiple times. Get clear, detailed property description. Take photos/videos. Get written specification matching promised property.

Fake Agents and Impersonation

Fraudsters pose as agents. Collect commission from both sides. Property doesn't legally transfer. Prevention: Verify agent's credentials with brokerage. Communicate directly with brokerage. Check agent's registration. Don't trust business cards alone.

Price Misrepresentation

Quote low price verbally, different price in contract. Hidden costs appear later. Fake price negotiation to extract more. Prevention: Everything in writing. Price includes what? Define all costs upfront. Have clear payment breakdown. Read documents carefully.

Possession Scams

You pay, property is already sold to someone else. Or tenant won't vacate. Or builder didn't disclose existing tenant. Prevention: Verify vacant possession legally. Get indemnity bond. Hire lawyers to ensure clean possession. Don't assume "vacant" without proof.

Builder Insolvency

Builder takes money, project stalls. Builder declares bankruptcy. Project remains incomplete. You're stuck. Prevention: Buy from reputable builders with track record. Verify financials. Get insurance. Disburse in stages, not upfront.

Paperwork Forgery

Documents are fake: titles, approvals, permits. You discover after purchase. Property is illegal or unsaleable. Prevention: Verify all documents independently. Get from official sources (municipality, land records office). Hire experienced lawyers. Don't accept copies alone.

Money Laundering Red Flags

Seller wants cash deals, no documentation. Prices are suspiciously low. Demand for quick closure. This is often money laundering. Involvement can create legal issues for you. Prevention: Insist on proper documentation. Use banking channels. Report suspicious deals to authorities.

Under-Valuation for Tax Evasion

Registered price is ₹50L but actual payment is ₹60L. Scammers do this to avoid taxes. If caught, both buyer and seller are liable. Prevention: Register at actual transaction price. Transparent dealings with proper documentation. Avoid illegal arrangements.

Your Defense Strategy

1) Never rush. Take time to verify everything. 2) Always use lawyers (don't skip to save money). 3) Get title insurance. 4) Verify everything independently. 5) Trust reputable sources only. 6) If something feels off, it probably is. Walk away from questionable deals.