Pakistan’s real estate market has recently experienced enormous growth. Both local and foreign investors are attracted to this market. However, this boom has led to an increase in property scams in Pakistan, posing a danger to innocent purchasers. These are the scams to be aware of to protect your investment.
Types of Property Scams in Pakistan
Take these essential steps to protect your investment and avoid common property scams.
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Fake Property Listings
Scammers create false property advertisements that exaggerate the features and offer attractive prices in creative ways to attract consumers. However, such listings can include properties that are not available for sale. After the buyer shows interest, the fraudster requires them to make advance payments and vanishes with the money once it is received.
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Land Grabbing and Encroachment
Criminals occupy empty land illegally and sell it to unsuspecting customers. To make the sale valid, they can give fraudulent title deeds or land in dispute. However, this is an unlawful method of land sale, and its consequences may be disastrous on the financial and legal front.
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Double-Selling Properties
The concept of double-selling a property scam involves selling the same specific piece of property to two or more people. This is a scam that can be executed when the ownership of the property is unclear, and the seller generates documents to present the property for sale. The perpetrators of this scam are often individuals with poorly maintained land records or unregistered property.
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Fake Developers and Project Delays
Investors may fall victim to scams involving fake or nonexistent real estate projects. Developers may also offer luxurious amenities and rapid returns, but they often fail to deliver, leaving investors with properties that are half-built or not built at all. Under-construction project delays are common signs of such fraudulent activities, leaving investors with nothing after they’ve paid substantial amounts.
Steps to Protect Your Investment
Here are a few steps to help you avoid losing your investment and falling victim to scams.
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Verify Ownership and Titles
Always request the original title deed and authenticate it with the relevant authorities, i.e., the land registry. Along with this, authenticate the seller’s identity by matching it with their national ID card to verify ownership. This is one of the steps that may prevent you from falling prey to property scams in Pakistan.
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Conduct Due Diligence
Investigate the background of the developer. Verify regulatory proposals of the appropriate authorities, i.e. Capital Development Authority (CDA). To prevent being duped by unscrupulous real estate frauds, it is a requirement to be regulatory compliant.
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Choose Established and Recognised Developers
Select experienced developers who have done successful projects. Developers who are already established are unlikely to commit fraud. They are also more secure and have legal support for their developments, ensuring your investment’s safety.
Legal Recourse in Case of Fraud
If you fall victim to a property scam in Pakistan, it’s essential to take immediate action:
- Contact local law enforcement departments or the Federal Investigation Agency (FIA) Cyber Crime Wing. The FIA plays a crucial role in investigating and prosecuting property fraud in Pakistan.
- Hire a property attorney to find legal opportunities and reclaim your investment. Therefore, they help you navigate complex legal procedures if fraud occurs.
- Keep records of all communications, payments, and documents of the transaction. You can use this record to sue or file charges against the perpetrator of the fraud.
Conclusion
Pakistan has a potential investment in property. Nevertheless, with the knowledge of the most typical cases of common property scams in Pakistan and possessing the online property verification tools to confirm the facts, you are able to protect your investment and not fall into the trap of scamming. As such, one should never enter into a property transaction without extensively verifying and conducting due diligence and consulting an expert before committing to a property transaction. Watch out for scams like fake real estate sales, fake land sales, and project delays of under-construction buildings, which are quite prevalent but can be avoided by taking necessary precautions.
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