Overview

Property fraud is one of the biggest crimes that happens in the country. Those who are ignorant or gullible often prey to it. If this crime goes undetected for a long time, it can give rise to a large number of issues. For instance,—if any fraudster forges your identity and transfers your property into their name, and, at the same time, records a document in the sub-registrar’s office, you will be victim of this fraud. Through fraud detection process, you can detect this type of fraud and prevent fraudsters from owning your property illegally. We at Your Property Doctor can help you keep away from property scams.

What is Real Estate Fraud and What are Its Different Types?

Real estate fraud is a deceptive process that involves selling, buying, financing or renting a property. Those involved in it steal your property, money or valuable information from you. Different types of real estate fraud include mortgage fraud, title fraud, rental fraud, and real estate investment trusts fraud.

What Steps are Involved in Fraud Detection in Real Estate?

Various steps involved in fraud detection in real estate include the following:

• Conducting Thorough Research: Do not trust real estate agents or sellers blind-folded. Conduct a thorough research to know about the property’ ownership, condition and history.

• Always Work with Licensed Professionals: Hire licensed professionals, who have vast experience in handling property transactions. Their licenses prove that they have specific qualifications and comply with the code of ethics.

• Effective Due Diligence: Due diligence involves a thorough property fraud investigation before finalizing the deal. This investigation process can unveil hidden issues, such as fraudulent documentation, undisclosed liens and title defects.  

• Never Send an Upfront Payment: If the transaction is legitimate, it won’t involve upfront payments, such as wire transfer. Fees and deposits are in compliance with established procedures that involve escrow accounts.  

• Beware of Online Listing: Beware of online property advertisements, such as low-quality photos, unrealistic pricing and generic descriptions. They can be indicators of a scam. Remember that genuine listings have high-resolution photos and clear details.

How to Verify the Authenticity of Property Documents and Avoid Fraud?

There are various methods to calculate the market value of land. Some of them include the following:

• Checking the Title Deed: deed is a legal document that saves you from property title fraud. Verify that the name of the seller on the title deed is same as that on other supporting documents.

• Conducting a Title Search: A title search plays an indispensable role in the verification of property documents. You can conduct this search in the local land registry office. It involves the scrutiny of public records to confirm that the seller has legitimate claim to the property and the property is free from legal encumbrances.

• Verifying the Registration of the Property: Ensure that the property is registered with Municipal Corporation. Check for property’s plot number, location and boundaries. In addition, confirm whether the registration number is legitimate or not.

• Inspecting the Property Physically: Inspecting the property physically ensures that the property matches the documents. Also, check for illegal encroachments or discrepancies in boundaries.

• Checking for Zoning Approvals: Ensure that the property has the required building approvals and construction permits from local authorizes.