Common property scams every buyer should watch out for

Most property frauds work on a buyer who is in a hurry and has not checked the papers. RERA has made things harder for dishonest sellers, but it has not ended the problem, especially with plots and resale deals. These are the eight we see most often, and what to do about each.

1. The same property sold to several buyers

A developer or broker takes money from more than one person for the same plot or flat, then disappears. It happens mostly with land and with under-construction projects where allotments are not transparent. The papers you are shown look genuine but are out of date or were never verified.

• Check the title deed and get an encumbrance certificatewhich lists the registered transactions on the property. In Telangana you can search for it on the Registration and Stamps Department portal.
• Register the sale as soon as you have paid. An unregistered agreement is weak protection against a second buyer.
• Buy only from RERA-registered projects.

2. Fly-by-night builders and stalled projects

A builder opens a smart office, advertises a project at an attractive "pre-launch" price, collects advances and then delays for years or abandons the site. Often the approvals or the funding were never in place.

• Under RERA a builder cannot advertise, market or sell a project without registering it first. Projects on land up to 500 square metres or with up to eight apartments are exempt. If a project above that size has no RERA number, do not pay.
• Check the approvals yourself, pre-launch offer or not.
• Visit the builder's completed projects and ask residents whether possession came on time.

3. Encroached or disputed land

Plots get sold on government land, on agricultural land that was never converted, or on land under litigation. Sometimes an entire layout plan is fabricated. Buyers find out when the authority or a rival claimant turns up.

• Have a lawyer verify the land records and give a written legal opinion before you buy an open plot.
• Check the land's zoning classification with the local planning authority.

4. Forged documents

Forged sale deeds, fake NOCs and made-up property tax receipts are common, because most buyers cannot tell a real one from a copy.

• Cross-check the documents at the sub-registrar's office.
• Ask for certified copies. A photocopy handed over by the seller is not enough.
• Pay a property lawyer to review everything before any money moves. The fee is small next to the price of the property.

5. Amenities that exist only in the brochure

The pool, gym or park in the brochure is missing at handover, or is far poorer than promised. You have paid a premium for it.

• Make sure each amenity is listed in the agreement for sale. A brochure alone is hard to enforce.
• Check that the amenities appear in the sanctioned plan.
• Visit the site during construction.

6. Paying for area you cannot use

The price is quoted on super built-up area, which includes your share of lobbies, lifts and other common spaces. Carpet area is the floor you can actually use inside the flat, and it is a good deal smaller. Under RERA the builder has to disclose the carpet area of every unit, and the agreement must state it. Ask for the carpet area in writing and compare projects on price per square foot of carpet area. Two flats sold as "1,500 sq ft" can differ a lot.

7. Fake listings

A listing shows good photos at a low price. The "owner" or "agent" says others are interested and asks for a token amount to block it. Once you transfer it, the number stops working. This is most common with rentals but resale buyers get caught too.

• Do not pay anything before you have seen the property in person.
• Meet the owner and check their identity against the ownership documents.

8. Charges that appear after you book

The sales pitch covers only the base price. Maintenance deposits, clubhouse membership, parking and other charges show up later and push the total well past your budget.

• Ask for an all-inclusive cost sheet before you book, covering every charge up to registration and possession.
• Read the maintenance terms in the agreement.
• If people already live there, ask them what they actually pay each month.

Our advice is the same for all eight: slow down and verify before you pay. If you want help checking a project in Hyderabad or Bangalore, book a call with a relai advisor.