If you live in Pakistan and have at least once in your lifetime dealt with property dealing, then you must have an idea that if it sounds too good to be true, then it probably is.
The first and foremost rule of getting into any deal is to look out for the truth behind it. Reasons being the low literacy rate in the country, and the increased demand for jobs – people of Pakistan are mostly on the lookout for easy money. In doing so, their greed goes to the level where they do not care anymore about anyone else but themselves.
In the past few years, numerous scams have been reported in the real estate sector leaving people in mental trauma. An increased rate of such cases has already been reported in Lahore.
Although, there are ways you can prevent yourself from getting into any scams.We here have listed a few signs of such scams with possible prevention schemes:
1) Requests for personal details
If anyone calls you on phone or contacts via SMS or emails, asking for any personal details or credit card verifications for finalizing any deals on renting or selling of property, never, I repeat, never, reply to such emails calls or text messages.It is the most commonly known technique for robbing away all your money.
Make it a rule in your life to not provide any personal or banking details on the internet, especially the credit card verification codes.
2) Out of country
This is one of the most common scams ever. The scammer here would tell you that he cannot meet you or make you visit the site and would force you to get the deal done just like that. In return, they assure you to get the keys mailed to you as soon as the advance deposits are paid.
The recommended prevention would be to force the proposed dealer or the owner, to let you visit the location yourself. If the other person refuses to do that or try to avoid the situation with any excuses. Do not let this go and leave the deal then and there.
3) Rental listing
Scams in rental listings mostly occur online, on the platforms where copyrights infringement is not an issue. The scammers usually copy the legal listings from authentic real estate forums and ask for advance security deposits or some amount as deal lockers before meeting you.
So here we have the very first caution: do not agree to deposit a single penny in such cases. Your first priority here should be the proper identification of the person you’re dealing with and ask for their legal license. Always stay connected to the authentic real estate websites such as Berq Properties.
4) Title fraud
These scams are most devastating for anyone who faces it. The scammer gets fake documents made having his name as the property owner sells the file and gets the paperwork completed. After all the deposits have been completed, the scammer runs away, leaving you with nothing in hand and losing all your money.
In such cases, no one is responsible for any paybacks and no one could be blamed but you. To save yourself from this life-shattering experience, always get the title insurance done from the home insurance provider beforehand. Keeping your personal and banking information details to yourself can also save you from major damages to occur.
5) Predatory lending
These scams are most common among the elderly class that has a low earning and is inexperienced. Such people are always on the lookout for quick and easy money through loans and mortgages, and are most likely to be scammed.
In such cases, the scammers come up with such attractive mortgages and high-interest schemes and are so good at convincing that their targets easily fall for such schemes, and are tricked into paying more than what they can afford. As a result, they lose their homes.
The best get away from such scams is to get the details of the dealers and set a budget for yourself which is not to be exceeded no matter what. Also, if you come across any such scams get them reported to the law enforcing authorities so that a proper action could be taken against them.
We hope that this will help you in getting away from all the possible scams and frauds related to real estate dealings.