Here are four common ways property is sold fraudulently that you should be aware of.
When Title Deed or Revenue Records are Made up
It is imperative to check whether the property you are buying has a clear title and is in its name Seller Whether it is an apartment, land or an independent house. In addition, the original sale deed should have been recorded. You should thoroughly check the entire range of documents. The series starting with the title deed which confirms that the seller is the rightful owner of the property in possession of the sale deed, encumbrance certificate, property tax receipts, among other things.
Sarvpreet Gurna, an advocate practicing in the Punjab and Haryana High Court, says, “As one applies for a certificate of encumbrance from the office of the sub-registrar, the document must contain the name of the owner. Encumbrance certificate certifies that there is no dues of the property. This means that the title to the property is clear and marketable. Also, this certificate will have information about all the transactions related to the flat. A fake document can also be prepared by citing the same details mentioned in the original sale deed. Noida-based lawyer Atul Nehra, who specializes in real estate litigation, says, “It is advisable to examine the original deed and get it checked by a lawyer, without relying on photocopies. He says that sometimes a thief enters into agreements of sale with different people, fraudulently collecting earnest money from all the deals.
There have been many such cases in big cities where even though the flat is registered in the name of the owner, the owner has given a power of attorney to a third party. deal with property. It is important to check whether the power of attorney holder has entered into any agreement with any third party. Also, it is advisable to cross-check revenue records, such as those in government land revenue departments, in situations where title documents to support an individual’s ownership are absent. “There are cases where a property has been registered but the mutation has not been done at the local municipal office. It should be cross verified online or at the revenue department office. Also, local enquiries are always handy.” Gurna adds.
“In recent years, several state governments have digitally recorded revenue and land records, municipal records and other records at the sub-registrar’s office. These digital documents are available online on the websites of the respective government departments. Review of title documents As of now, it is a standard practice to verify the records available online. If any mismatch is found between the documents physically available and the documents available online, the possibility of construction cannot be ruled out,” says Srinivas. Are BR, Partner, DSK Legal.
When the Power of Attorney is Forged
Legal Eagle advises against buying property through power of attorney as there is a good chance that the property you are buying on power of attorney is counterfeit. A thief prepares a fake power of attorney, on the basis of which the sale is executed in favor of unsuspecting buyers. The fraudster’s modus operandi is to forge the title deed of the original owner and the seller claims that the original documents were lost. “In this scenario, it is important to obtain a Power of Attorney attested by the owner whose name is mentioned in the property papers, obtain an affidavit from the present owner stating that the original is lost, and will be traced once Will be handed over, to the buyer,” says Gurna. He further said that there is a risk of fraud in the power of attorney as the same property can be sold to different persons. “There have been many cases where the real owner nominates more than one person for a specific power of attorney and all sells the property to different people,” says Nehra. Ordinary Notarized POA to a Registered POA. is considered more secure than Adding a blanket indemnity clause to the sale deed helps protect the buyer from future risk.
Srinivas adds that online litigation can be searched on the e-courts website, though in a limited way, to trace pending or past litigation in respect of property. “If a lawsuit is identified, its investigation will reveal past or ongoing issues that may be related to authenticity or hidden mortgages,” he says.
He adds that photocopies of the seller’s PAN card and voter ID will also have to be obtained and they will have to be verified.
When the mortgage is not approved
There have been many cases where the seller has not paid the mortgage before transferring the house. Says Nehra, “The scam artist takes home loan against property, disposes of the property and is blown away. The recipient often has to fight a lengthy legal battle to get his money back.” Hence it is advisable to take a home loan to buy a property. Gurna says, “It is an easy way to check whether a property is ‘clean’ or not because banks or financial institutions only sanction properties that are legally sanctioned, which have the required documents. This prevents buyers from getting stuck in a bad deal. Helps to escape.”
When the succession certificate is fake
Here properties are sold on the basis of forged legal succession certificates. This type of fraud is usually due to non-availability of original documents. Fraudsters usually advertise the loss of the original document in a lesser-known daily. Gurna says, “Buying a property whose original title deed document is not available is a very precarious situation. It is important that along with the succession certificate, the death certificate is also verified online or with the records of the issuing authority. to be done.”
“It is very important to do due diligence with respect to the title of the property. Apart from thoroughly scrutinizing the title documents, the seller has to place an advertisement in the newspaper inviting objections from the public regarding the transaction on the property. will likely Danger! Or hiding issues,” says Srinivas.
Nehra says it is becoming difficult for scam artists to dupe people on the basis of fake property papers because everything is online. “In earlier times, when everything was done manually, it was easy to create papers. These days photographs and thumb impressions on documents have made the job of thieves very difficult,” he says.
Thus, it is important to tread carefully as scam artists are always on the lookout for an opportunity to take you for a ride.