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How to Avoid Common Frauds in Property Market

How to Avoid Common Frauds in Property Market

Human beings are avaricious in nature and contentment is very varied to achieve no matter how much you possess yet the appetite for more always felt burning. Along with clothing and food, shelter is a basic necessity. If you are privileged enough to aim for a reputable and luxurious life style then real estate is there to facilitate you with the beautiful villa you want or a piece of land in a bewitching scenery. Nevertheless, there are some who would try to benefit from your inexperience or naivety, so to help you how to avoid common frauds in property market agents who are always ready to pounce on unsuspecting clients here I present this guiding piece of writ-up that you need to ensure while buying property.

How to Avoid Frauds on Property

a. Do Not Blindly Trust the Agent 

Agents can be deceptive most if the time. So, do your research using different property portals like Zameen.com, OLX.com.pk, and Lamudi.pk. Keep in mind that most of the prices (demands) listed in these portals are 20–30% greater than the actual market price.

b. Find yourself the Market Value of the Plot or House

You found a property that suits your needs and taste, the next step is, now you need to find its market value. You need not do much for it. In fact, you can trick the same agents to find the market value of a particular property. As anybody who is familiar with the real estate scenario in Pakistan will tell you, here is what you need to do: Call Agent A who lists the plot and ask about its final price. Let’s say he quotes X amount for it. Call Agent B who is dealing in the same area. Ask him that you have that plot and you’re looking to sell it. Chances are that the price he quotes you is different from the price you got from Agent A. Let’s call this new price Y. Now lets do some basic math: M = (X+Y)/2. You now have your estimated market value M.

 

c. Look for the Right Agent to Avoid Common Fraud

This one is tricky and doesn’t have a straight answer. You need to talk and meet multiple agents. Just pick an agent who quotes a price nearest to your estimated market value M. A tip to consider. Don’t get impressed with their luxurious offices, educated accent, or the number of employees working under them.

 1. Do not go with One

Always consult more than one agent.

 

d. Meet and Negotiate with the Owner in-person

Ask your agent to set up a meeting with the owner of the property. Never make a deal with an agent directly. Now you need to verify ownership of the property by cross-checking the allotment/transfer letter with the NIC of the person you’re meeting with. Many agents will make excuses that the owner is not in town or is abroad. Just simply don’t buy those excuses and walk away from the deal if that happens.

 

 2. Do not pay at once

There are many Real Estate Problems Challenges in Pakistan, Once you finalize the price and payment terms between you and the owner of the property, you need to pay the owner some token money. This ensures that you both get bound to the deal. Do ask for a receipt from the owner/agent about the token money.

 

Couple of things to take care of here:

  • Your token money should be between rupees 50K to 1Lac.
  • You must take a copy of the allotment or transfer letter.
  • The token receipt must have a complete address or file number of a property.
  • The token receipt must mention that the property doesn’t have any litigation or due payments.
  • This token money is counted in the total price of a property.

e. Ask Your Agent to Verify the Allotment or Transfer Letter

Fair is fair. It is part of an agent’s commission since they have given you a secure deal. However, you don’t need to pay your agent anything until this point. If you have time and you are dealing with an agent for the first time, its better go with him to the Society’s office to cross-check the status of the property you’re intending to buy.

f. Pay via Bank Pay Orders

Avoid paying in cash. It is always better and more secure to pay using pay orders. Besides each society has different rules for Taxation and possession of property Law in Pakistan. This is a huge subject that needs an article of its own to fully explain it. As for what you need to pay your agent, his commission is 1% of the total price. If you follow these steps, I am sure you can avoid getting scammed by many unscrupulous and fraudulent in the market. Most, of all, do not rush in real estate matters. The cooler, calmer, and more thoughtful you are, the better investment.

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