Real estate sector has witnessed many scams and these scams are the result of fake promises or freebies by the some of the builders which eventually turns out to be fraud. Lately, these frauds have become the front pages’ news and buyers are now in fear that what if they face the same issue. This article is going to shed some light on the list of the frauds by the builders.
We have analyzed the common of the frauds, along-with their remedy which is as under:
1) False promises about the return on money
Just to sell inventories, some builders commit the kind of promises which becomes the bait to get customers. Not long ago there was a trend of promising % of returns on invested money. Builders used to fake about the percentage return on invested money until the time of possession and the cheque they gave would bounce.
- Research about the past of the builder and its projects
- Sign a legal agreement for the promise
- Don’t get lured by extra income
- Get every conversation recorded
- Complaint to RERA
2) Fraud over the title of the property
This is the duplicity of the title deed and selling the same property to the gullible buyers. This is an act of cheating just to muddle with the money of buyers.
- Continuous follow-up for change of title
- File complaint about any delay and issue
3) Delay in the completion of the project.
The delay in completion of the project is just because of the builder wrong intention of making huge profits. After getting the booking amount from the buyers they launch their new project and keep on pooling funds from one project to another.
- Ask for compensation
- File RERA complaint
- Ask for a refund for the amount
4) Intentionally delay in approvals
Builders on purpose delay the various approvals like approval from electricity board. Even though the project is completed on time but there is no use of property without electricity or water. Superficially It seems like that project is ready to be possessed by the buyer but in reality, it is not.
- Ask for approvals
- Enquire from respective department
- Check the details on RERA website
5) Subvention Scheme
In subvention, scheme homebuyer pays the 5-20% of booking amount and rest is paid by the Bank to the Developer. The monthly installments of the buyer start after getting the possession of the property. Under this scheme, builder run away after taking the initial amount and leave the homebuyers helpless.
- Don’t go for such scheme
- If do, take proper legal advice and do everything in legal
- File RERA complaint
6) Defective title of the land
Any land on which the project is being or has been developed shall have clear title i.e. the land should belong to the builder only and if it is not, then the project will be closed on account of being constructed on the land of defective title. In this case, homebuyers lose their money as this matter will remain with the court and Builder relishes the money till the time court disposes of it.
Remedy – check the land record and clearances
7) Profile Funding
In profile, funding builder asks a person with a good salary to buy property in his project with the help of a loan. In other words, the buyer is providing funding to the builder on his financial eligibility, the buyer doesn’t need to invest any money at the initial level; builders use their profile to get money in their account and they end up with getting huge funds at the low rate of interest.
These acts have become so common by the builders to con innocent buyers and if buyers want to save themselves from these fake promises then they should be very smart about selecting the project they are going to invest in.
How we help in Complaint Filing and Redressal
RERA consulting team of Centrik is very versatile and experienced. We have in-depth and practical experience in dealing various issues and RERA litigation before different RERA authority. To name, some consultancy, are as under:
RERA registration for project and agents
RERA Complaint filing & redressal
Appearance before RERA Authority
And other advisory
For more details and advisory, please mail us at firstname.lastname@example.org or call us at 8383011629
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws