Real Estate News: Developers Luring Buyers in Financial Scam, Know How to Avoid Property Fraud

Real Estate News: Property fraud has become a common problem, with numerous reports of completed developments and financial frauds that leave buyers out of pocket. The real estate industry, which involves deals costing crores, necessitates extreme vigilance at every stage. Developers frequently entice purchasers with appealing marketing that highlight amenities that may not be present in the finished house. To combat such malpractices, the Real Estate Regulatory Authority (RERA) was formed in 2017. According to RERA, developers cannot make fraudulent assurances, and each sale must include a legitimate RERA registration number. RERA requires developers to reimburse customers financially in the event of project delays, as well as impose a three-year penalty for noncompliance.  

How to Avoid Property Scam?

Another prevalent deception is the misrepresentation of build-up, super build-up, and carpet areas, which leads consumers to pay for more space than they actually receive. RERA has discouraged this practice by requiring sales based solely on carpet area. Furthermore, any significant changes to the project require approval from two-thirds of the buyers. Material quality is another major consideration, as poor construction might jeopardize safety. If structural faults occur within five years of purchase, the developer is liable for repairs. Buyers must also get all required certifications, including municipal and safety approvals, before purchasing a home. To avoid fraud, select a respected developer, conduct extensive research, compare projects, and verify all legal issues before making a decision.