6 Common Real Estate Frauds in India and How to Avoid Them?
April 22, 2025
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Buying property in India—whether it’s for living, investing, or starting a business—is a big milestone. But behind the shiny brochures and attractive offers, there’s a darker side that buyers need to be aware of: real estate frauds.
From property fraud involving fake ownership documents to commercial real estate frauds where projects are endlessly delayed, the Indian real estate market has its fair share of risks.
When buying property, it’s important to be aware of common Real Estate Scams that can cost you time and money. From fake ownership to hidden deals, these scams can be tricky. Here are 6 of the most common scams and how to avoid them.
This scam happens when someone pretends to own a property and tries to sell it using forged papers. In some cases, the real owner has no idea their property is being misused. It’s like someone selling your house without you even knowing.
How to Protect Yourself:
Ask for all original property papers.
Visit the local sub-registrar’s office to confirm who the real owner is.
Hire a trusted property lawyer to do a title check before you buy.
This is a common trick, especially in under-construction buildings. One flat is shown to several buyers and booked multiple times. Everyone pays a token or booking amount—only to later find out it was never theirs in the first place.
How to Protect Yourself:
Only deal with builders who are registered with RERA.
Make sure you get a written agreement that clearly mentions the unit number, floor, and project details.
Visit the site, ask questions, and talk to people who’ve already booked there.
You invest your hard-earned money, expecting possession in 2 years. But even after 5 years, the project isn’t ready. Meanwhile, you’re stuck paying EMIs without a house to move into.
How to Protect Yourself:
Choose builders who have a solid reputation for finishing projects on time.
Confirm that the project is listed on the official RERA website.
Don’t pay everything upfront—go for a construction-linked payment plan so your money is safe.
Real Estate Frauds often involve land that is not legally available for sale—such as government land, agricultural land, or land tied up in legal disputes. Many buyers only find out too late that the property they purchased wasn’t legitimate.
How to Protect Yourself:
Verify that the land can be legally sold for residential or commercial use.
Visit local authorities to check land records and ensure there are no ongoing disputes.
Don’t be swayed by verbal promises or deals that seem too good to be true—low prices often hide legal problems.
In commercial real estate, scams often come with big promises: guaranteed rent, pre-leased spaces, or high monthly returns. But once you invest, the promised tenant is nowhere to be found—or the lease was completely fake.
How to Protect Yourself:
Ask to speak with the actual tenant. Don’t just trust what the broker or developer says.
Check if the property has the correct commercial licenses.
Be skeptical of deals that promise “guaranteed income”—real estate returns don’t come with guarantees.
In a benami deal, the property is bought in someone else’s name to hide the real buyer’s identity—often to dodge taxes or mask illegal money. If discovered, both the buyer and the name-holder can face serious legal trouble.
How to Protect Yourself:
Always buy property in your own name or in the name of a legal family member.
Avoid any deal where someone asks for part payment in cash and the rest through the bank—it’s a red flag.
Keep the entire deal clean, documented, and registered legally.
Investing in real estate property can be exciting, but it’s important to stay cautious and avoid Property Fraud. To help you make secure decisions, here are some easy tips to protect yourself while investing in real estate.
You should obtain all documents required in your decision, such as the title deed, sale agreement, encumbrance certificate, and occupancy certificate. In case you do not know what to verify, it is always safe to take assistance from a property lawyer.
Purchase from established and reputable builders or brokers. Check official websites such as RERA to verify if the project and builder are registered. This simple step can protect you from property fraud.
Do a quick background check on the builder. Check how many projects they have actually finished. Were the houses delivered within time? Were there any complaints or legal suits? These can tell you a lot.
To remain secure from Real Estate Frauds, never pay in cash. Opt for bank transfers or online payments instead, and always ensure you receive proper receipts. Whenever anyone proposes a “cash plus cheque” option, it’s a red flag. Keep your transactions clean and papered—it’s your best protection.
Purchasing real estate does not have to be stressful or hazardous. If you are unsure about where to begin or simply prefer professional advice, contact established real estate consultants in Gurgaon. An expert consultant will be able to keep you safe from fraud, educate you about the legal procedure, and locate the correct property confidently.
Hi, I’m Ayush Thakur, a Real Estate Consultant in Gurgaon with 10 years of experience. I specialize in commercial, residential, and retail properties, helping clients find the best deals with expert guidance for a smooth buying, selling, or investing process.
Leading Real Estate Consultant Company in Gurugram, India.
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