Thursday 11th August 2016
Scams which can get you into a borehole
False Promises: With increase in competition in realty, builders are trying to attract a lot of consumers in the starting stages of a project to meet their capital requirements. A Gurgaon-based real estate developer was recently bought to justice by over 700 investors of looting more than Rs 1,000 crore in a realty project by attracting them into false scams through advertisement. The developer had assured investors of 12% returns on the invested money until possession, but the cheques bounced and to fuel the fire, investors faced unexpected project delays, bringing down the investors property dream to null.
Assured Rental Returns: Many builders’ market their projects by guaranteeing something called as a fixed rental income from developments. Some builders tend to even propaganda fake rental listings of various developments over the media. If the interested buyer does not a thorough research, he may actually believe afixed monthly income will be obtained by rentonce bought. But, in harsh reality, once the purchase is over, rentals are usually very hard to come by, leaving the investor in a agony. As for the builder, they escape from any kind of misleading of consumer.
Title Frauds: This happens with both developersandindividual sellers. There have been cases where dupers have duplicated title deeds of disputedorvacant projects and sold them to clueless buyers. The scammers are way out of hand when the duped face the reality. A similar realty fraud is where cosumers purchase their aspired home only to later come to know that the development does not include that part of plot that the developer had specified during the initial hours of deal.
Deliberate Delays: Disappearing builders and project delays are another common phenomenon in realty fraud. One unfairstrategybuilders resort to is to delay project completion purposely until they get good enough number of buyers. Yet others switch the flow of pooled money from one project to another, hence delaying both projects in the process. Existing andmany new builders have left a trail of poor innocent buyers who have just purchased agreements to show and are kept on wait while they pay huge rentals.
Deviation from Approved Plans: Many projects when completed take several deviations from the approved plan in terms of common areas. This possesses a huge challenge for many buyers who have to compromise on common amenities, spaces, promised luxuries and even on core project amenities like dedicated parking space despite having made additional payments for the same.
Delayed Approvals: There are many cases reported where buyers are left wringing their hands in despair even after possession, since several sanctions for utilities like electricity connection, water connection, etc. were pending. Issues like plot in unauthorized layout or sub-divided land, building with land use violation, setback violations, floor area violations, etc. detected after agreement formalities and construction have commenced could lead to delay in other downstream approvals and title registration.