Real estate malpractices have become common in Pakistan’s property market. The industry is troubled with fraudulent schemes that target unsuspecting investors, leaving them with significant financial losses.
A considerable percentage of the country’s active horizontal projects lack approval, with many real estate fraudsters selling homes that do not exist or that they do not genuinely own. As a result, many people have lost their hard-earned cash due to these fraudulent schemes.
In this article, we discuss Pakistan’s five most common real estate negligence and advise how to avoid them.
Lack of Verification
One of the leading causes of real estate malpractices in Pakistan is the lack of verification by buyers and sellers.
The qualifications of the parties engaged in a real estate transaction cannot be independently verified using a reliable system, making it easy for con artists to scam unwary people.
The government needs to enhance the real estate verification procedure to safeguard the populace against fraud. People must exercise more caution while making real estate deals and exercise thorough diligence before investing their hard-earned money in any property project.
If you believe you may have fallen victim to a scam, there are a few things to watch out for. Firstly, ensure that the listing is on a trustworthy source. If it isn’t, it’s most likely fake. Next, look online to see if you can find any reviews of the seller or the property.
Additionally, try to contact the individual listing the property. If they are unresponsive, it is probably a fraud. Lastly, avoid signing any contracts before going to the property’s location and speaking to the seller face to face.
Some reputed housing schemes like soul city Lahore, Smart City Islamabad etc don’t need much sight verification but it is always better to look once.
Bait and Switch
Another common fraud scheme is the “bait and switch,” where a seller makes an alluring offer but later decides not to close the deal. Instead, the seller offers a subpar alternative.
Being aware of the warning signals will help you avoid falling victim to this scam, which can be very expensive for the victims. To prevent falling prey to a bait and switch, do your homework and consult with a trustworthy real estate advisor if you’re thinking about purchasing the property.
The quantity of bogus listings has grown over the past few years. If you believe you might be the target of such a scam, there are a few things to watch out for. To begin with, make sure the listing is on a reliable website. If it isn’t, then it’s probably a fake. Check online reviews for the seller or the property, if available.
Try to get in touch with the individual listing the property as well; if they are unresponsive or you can’t locate any information on them, it’s probably a fraud. Finally, avoid signing contracts before viewing the property and meeting the seller in person.
Another common fraud that occurs in real estate transactions is the use of false documentation. In these situations, the seller claiming ownership of the listed property is incorrect. By creating and presenting phoney documents, they defraud buyers.
To be sure that the person claiming ownership of the property does own it, it is crucial to check all of the property paperwork carefully. To learn more about the deal’s legal ramifications, speak with a reputable attorney or law firm.
Never approve or sign a paper that seems questionable. Always double-check everything.
Conduct thorough due diligence
One of the most effective ways to protect yourself from real estate malpractices is to conduct thorough due diligence before making investment decisions. This may include researching the seller or developer, reviewing legal documents, and verifying the authenticity of property listings.
Gathering all the necessary information and asking the right questions can minimise the risk of falling victim to fraudulent schemes.
Another critical strategy for protecting yourself from real estate malpractices is seeking professional advice from trusted sources. This may include working with a reputable real estate agent, consulting with a lawyer, or hiring a property inspector.
These professionals can help you identify potential red flags and guide you on avoiding common scams and pitfalls.
Real estate malpractices are a significant issue in Pakistan, and investors must exercise caution while making real estate deals.
The most common real estate malpractices in the country are the lack of verification, verified listings, bait and switch, falsified records, and untrustworthy agents.
To avoid falling victim to these fraudulent schemes, it’s important to take certain precautions and exercise due diligence when making real estate deals.
By taking precautions such as verifying the parties’ credentials in the transaction, doing thorough research on the property and seller, and consulting with legal experts if necessary, buyers can protect themselves and their investments.