11 Popular Property Frauds in Pakistan (Prevention Tips 2024)
December 4, 2023
Property frauds can pose significant risks in any real estate market, including Pakistan. Here are some common property frauds in Pakistan and tips on how to avoid them:
1. Fake Documentation
- Avoidance Tip: Verify all property documents with relevant authorities. Use the services of a trusted legal advisor to scrutinize the paperwork and ensure its authenticity.
2. Bogus Sellers or Agents
Avoidance Tip: Deal only with reputable real estate agents and sellers. Verify the credentials of the agent and cross-check with regulatory bodies if necessary.
- Avoidance Tip: Physically inspect the property and its boundaries. Verify with local authorities to ensure there are no encroachments on the land.
4. Title Fraud
- Avoidance Tip: Confirm the title of the property by obtaining a copy of the title deed. Ensure that the seller has the legal right to sell the property.
5. Multiple Sales of the Same Property
- Avoidance Tip: Verify the ownership status of the property through official records. Ensure that there are no conflicting claims or multiple sales of the same property
6. Incomplete or False Information
- Avoidance Tip: Conduct thorough research on the property and its history. Verify information provided by the seller and consult reliable sources.
7. Unapproved Housing Schemes
- Avoidance Tip: Check with relevant authorities to confirm the approval status of the housing scheme. Avoid investing in unapproved or illegal projects.
8. Price Inflation Fraud
- Avoidance Tip: Research the market rates for similar properties in the area. Be cautious if the offered price is significantly higher than the prevailing market rates.
9. Unregistered Agreements
- Avoidance Tip: Ensure that all agreements are properly registered. Unregistered agreements may not hold legal weight in case of disputes.
10. Misleading Advertisements
- Avoidance Tip: Be wary of exaggerated claims in property advertisements. Verify the details independently and don’t rely solely on promotional material.
11. Payment Frauds:
- Avoidance Tip: Use secure payment methods and be cautious about making payments in cash. Keep a record of all transactions, and involve legal professionals in financial dealings.
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