The real estate sector in Pakistan is the most flourishing at the moment. Investors eagerly invest in modern societies with remarkable ROI. Over the past few years, real estate had unprecedented growth. New societies are being developed, which are luring more investors. But real estate fraud has made investors cautious, which means every property investor in Pakistan is looking for ways to avoid real estate scams in Pakistan. Previously, we’ve discussed top-5 precincts to invest in Bahria Town; in this blog, you’ll learn ways to avoid apartment scams or real estate property frauds.
How to Avoid Real Estate Fraud While Buying Property in Pakistan?A long-term financial commitment is required for real estate investment. Therefore, vigilance must be used while conducting these transactions; as a result, There are customer-friendly rules and regulations in Pakistan’s real estate market, but buyers need to exercise caution and diligence owing to the involvement of several parties and a plethora of paperwork needed to obtain a home.
1. Do Your Own Market ResearchReal estate investment requires extensive market research to determine the current market price, credible dealers, necessary documentation, excellent societies (for dwelling purposes), and projects by reputable developers. Investors may save a lot of problems and troubles by doing this. Finding the right initiatives to invest in might be facilitated by research. There’s a lot less stress in the decision-making process as well. Additionally, you may inquire about the price of the same area from other agents’ dealers, and now we have the option of an online listing. Researching real estate items using this method is more convenient.
2. Fake AgentsUnreliable agents are a typical occurrence you should be on the lookout for. The ability of real estate brokers to persuade and persuade their clients makes it difficult to determine whether or not the offers they make are genuine. Working with a trusted friend or family member will ensure that the individual handling your belongings is someone you can put your faith in. Visit their office and ask for references if you’re approached by an unknown agent who doesn’t belong to a well-known agency.
3. Meet The Seller Face-to-FaceAsk your realtor to arrange a meeting with the former owner of the home once you’ve decided on the property you want to purchase. When it comes to essential concerns like these, you should not deal directly with the agent unless the property is being sold by a reputable development company. By verifying the allotment or transfer letter with the seller’s NIC, an investor may ensure that they’re purchasing a property that is legally theirs. For international investors, this is a significant problem because they cannot meet the seller of the property. If possible, they should travel to the location and see the vendor in person. This is critical since this is where agents commit fraud. When in doubt, avoid investing in this company.
4. Pay Small Amount In AdvanceThe buyer’s life can be made simpler by paying in modest quantities. For the customer, it’s both convenient and safe. The buyer must pay a nominal fee to the property owner once the price and payment arrangements have been agreed upon by both parties. As a result, the agreement is legally binding on both parties. To maintain the token money, the buyer should get a receipt from the owner/agent. At this point, the buyer should pay attention to a few factors. The minimum amount of token money should be between PKR 50,000 – PKR 100,000. Obtain a copy of the property’s allocation or transfer letter. Token receipts must include all relevant information, such as the property’s address or file number. An itemized token receipt must state that the property is free of litigation or past-due bills. No more money should be paid by the buyer for this token money, which is included in the overall purchase of a property. If these concerns aren’t investigated and explored thoroughly, they might cause many headaches.
5. Ask For Approved LayoutA copy of the authorized construction blueprint must be obtained by buyers from the developer or seller of an already completed property. The danger of project delays or cancellations might be reduced if the authorities confirm that the building plan/layout and construction are approved. This fast inspection of the property will verify the accuracy and reliability of the blueprint. This also guarantees that the buyer is not defrauded once the initial down payment is made. The buyer should also verify the area’s specifics before making a purchase. With words like “hyper built-up space,” developers can communicate property values to customers. Rather than relying solely on the information provided in advertising and brochures, a prospective buyer should measure the carpet area (the area on which construction can be done) of a property before deciding. The agreement’s documentation should also include the exact area specifics to avoid subsequent disagreements. ‘
6. Demand Detailed Cost BreakupA lump-sum price for a property is sometimes all that developers/sellers are willing to reveal about a property they are selling. Buyers should ask for a full breakdown of the cost, explicitly stating the type (breakup) of the costs and the payment terms included in the lump sum pricing. This cost breakdown must also be incorporated into the transaction contract to be legally enforceable.
7. Don’t Rush BuyingIf you’re looking to purchase or sell a home, it’s best to take your time. A lot of the time, the sellers are putting pressure on purchasers to acquire the home right away. Avoid this tactic since most sellers are trying to get rid of properties that lack basic and civic facilities. Do your homework. An experienced real estate agent can also assist you in making an informed and successful selection. Now you know how to avoid real estate fraud in Pakistan. If you’re looking for property investment in Pakistan, our real estate marketing experts at RAAS will be happy to help you out.
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