How to Avoid Fraud When Buying Property

Purchasing property is one of life’s most significant financial decisions. It’s a moment filled with excitement, whether you’re acquiring your dream home, an investment plot, or a commercial space. However, the real estate sector can also be a target for scams and fraudulent practices. Without proper precautions, what should be a milestone achievement can quickly turn into a costly disaster.

This comprehensive guide explains how to avoid fraud when buying property — from essential legal checks and document verification to spotting suspicious deals and working with reliable professionals.

What Is Property Fraud?

Property fraud occurs when a party uses deceit to illegally sell, transfer, or profit from real estate. It can involve forged papers, concealed disputes, or unauthorized sales.

Common examples include:

Fake title transfers – Selling land or property without rightful ownership.

False claims – Providing incorrect details about property size, amenities, or location.

Duplicate sales – Selling the same property to multiple buyers.

Illegal land conversion – Passing off agricultural or restricted land as residential or commercial.

Encumbrance issues – Selling property already under mortgage or legal dispute.

Being aware of these tactics is the first step toward safeguarding your investment.

Verify the Title Thoroughly

A property’s title deed is proof of ownership. If it’s unclear or invalid, you could face legal trouble later. Understanding everything you need to know about property titles and ownership will help you spot irregularities before they become costly problems.

Steps to verify:

• Ask for the original title deed, not just a copy.
• Cross-check ownership details with the local land records office.
• Ensure the property is free from mortgages or disputes.
• Obtain an Encumbrance Certificate (EC) for confirmation.

Tip: Always rely on certified documents from official sources rather than trusting photocopies.

Confirm the Seller’s Legitimacy

Before negotiations, ensure the seller is genuinely authorized to sell.

• Verify their government-issued ID (Aadhaar, PAN, Passport).
• Match their name to the title and official property records.
• For developers, check their RERA registration status.

Scammers often impersonate owners, so never skip this step.

Check All Property-Related Documents

A genuine seller will provide complete documentation without delay.

Must-have documents:

Sale Deed – Evidence of property transfer.

Mother Deed – Traces ownership history.

Encumbrance Certificate – Confirms the property has no legal liabilities.

Tax Receipts – Proof of up-to-date payments.

Occupancy Certificate (OC) – Ensures the property is safe for use.

RERA Registration – A must for new projects.

Approved Building Plan – Confirms legal construction.

Missing paperwork can signal potential fraud.

Visit and Inspect the Property

Do not finalize a purchase based on advertisements or images alone.

When inspecting:

• Compare physical measurements to official records.
• Check for encroachments or unauthorized extensions.
• For new buildings, assess construction quality.
• Verify that water, power, and drainage connections are legal and functional.

Talking to neighbors can also reveal the property’s history.

Confirm Land Use and Zoning Rules

Some properties are fraudulently marketed as residential or commercial when they are not legally permitted for such use.

• Check municipal zoning regulations.
• Request conversion proof for agricultural land.
• Avoid properties in restricted or environmentally sensitive areas.

Violating zoning laws could lead to demolition or costly penalties.

Make Payments via Escrow

Avoid paying directly to the seller’s personal account. Instead, use an escrow account handled by a bank or registered service provider.

Advantages:

• Funds are only released when agreed terms are met.
• Reduces risk of premature withdrawals.
• Increases transaction transparency.

Be Wary of “Too Good to Be True” Offers

Unusually low prices or high-pressure tactics often indicate trouble.

Fraudulent offers may include:

• Far below market rates.
• Demands for instant booking.
• Vague promises of future development.

Always compare with market prices and ask why it’s being sold cheaply.

Work With a Trusted Real Estate Expert

Engaging a credible property consultant or company can minimize fraud risks.

Benefits:

• They pre-screen properties for authenticity.
• Manage documentation and coordinate with legal professionals.
• Provide market insights to detect suspicious deals.

If you plan to buy real estate property in Surat, a well-established and trustworthy firm like Shreepad Group can guide you through secure transactions, ensuring all legal and verification steps are completed.

Consult a Property Lawyer

A legal expert can:

• Validate all property papers.
• Ensure compliance with RERA and local laws.
• Draft airtight agreements that protect your interests.

Though it adds to your expenses, it’s a small price compared to losing your investment to fraud.

Clear Utility and Society Dues

Unpaid bills or society maintenance fees can become the buyer’s burden.

Before purchase:

• Get no-dues certificates from utility providers.
• Obtain society clearance letters for apartments or gated communities.

Register the Property Promptly

After completing the purchase:

• Register it at the sub-registrar’s office immediately.
• Pay the applicable stamp duty and registration charges.
• Apply for mutation to update your name in land records.

Delays may leave room for fraudulent claims.

Prefer RERA-Registered Projects

The Real Estate Regulatory Authority (RERA) helps promote accountability in the real estate market.

Advantages of RERA registration:

• Assures timely project delivery.
• Gives buyers access to verified project details online.
• Provides legal protection in disputes.

Always verify the property’s RERA number before making commitments.

Check Power of Attorney (PoA) Sales Carefully

In some scams, PoA holders sell property without the actual owner’s consent.

• Confirm PoA validity and registration.
• Verify details at the registrar’s office.
• Ensure the actual owner is aware of the sale.

Warning Signs of Possible Fraud

• Incomplete paperwork.
• Sellers avoiding face-to-face meetings.
• Refusal to show original documents.
• Pressure for immediate payment.
• Requests for large cash transactions without receipts.

If these appear, pause negotiations and investigate further.

Conclusion

While property fraud is a real threat, it can be avoided with proper research, legal verification, and guidance from trustworthy professionals.

For buyers in Gujarat, especially those seeking opportunities in Surat’s growing real estate sector, choosing a reputed developer can make all the difference. Shreepad Group offers thoroughly verified properties and full assistance throughout the buying journey — ensuring transparency, legality, and peace of mind.

Make your investment safe and rewarding — buy real estate property in Surat with professionals who put your security first.