Buying a piece of land and building a house on it is surely a dream of every individual, but only the fortunate ones are able to get this opportunity. But while buying a property in a new housing society, one must be careful and do some research that he is not investing money that will lead him to the fraud added to the mental agony. As there are many cases when one buys a land and later on come to know that it is a property of another person and he has been a victim to the fraud. So to avoid such type of mental stress and wastage of your precious saving you must under go some of the steps before paying money to the owner. We are sharing here some useful tips to avoid fraudulent deals when you are going to buy any plot in a housing scheme.

Check about the Authenticity of the Housing Scheme

The major and the first step is to research about the housing scheme announced is that it should be checked if it is approved from the government or not. It is also necessary to check in the registry or revenue department, noting the details of the property and the name registered.  Once satisfied with the housing society you should familiarize yourself with different legal procedures and documents that are usually used in the property transactions. There are many fraudulent housing schemes launched by unknown developers to make instant money. People usually are not aware of the illegal housing projects and they put all their money at stake. There could be any dispute that will create any hindrance in starting any construction on the plot.Therefore it is necessary to know if the scheme is legal or not.

Sale Deed Agreement

The only thing that gives legal protection to any owner is the sales deed. Sale Deed agreement or commonly named as Registry is the most important thing to check. It is one of the most important legal documents which are used during the sale and purchase of the property.It gives the proof of the sale of the land. And no sale purchase of a property is complete without it. It contains the details about the property, full name of the owner and buyer, their addresses, identification of the property, the price, payment details etc. These documents should be carefully prepared preferably by some professional legal authority.  In the cases of new housing societies,whether government or private a title document called title deed or allotment letter is used to show the ownership of the land. Sale deed agreement confirms that the property is free from any nuisance. But before sale deed, you need to execute sale agreement.While you are executing sale deed, you must check whether the plot under deal bears the same title or not.

Check the Historical Ownership Record

Even if you are buying the plot in a new housing scheme , you should check the record of the property and its previous owners or check that the plot is not a disputed land. You should inspect and investigate the property either by physically going there or check from the relevant office by obtaining the certified records.  You should also check that this plot has not kept as mortgage in any other loan scheme. This is the most important step and must not be over looked. The property that you are going to buy could be disputed or in name of any other owner. Therefore it is very important to check all these possibilities. The ownership of the property should be check properly through any competent lawyer to avoid any dispute.It is possible by inspecting the property physically and confirming from others. This is one of the best ways to avoid any fraudulent deals while buying a new house in a housing scheme.

Check the Plot Is Transferable or Not

Another important step to avoid the fraud while dealing the purchase of plot is to check that

  • Plot is transferable or not
  • Is the transferor competent or qualified to transfer the plot or not
  • The transfer is done according to the law
  • The property that is sold is free from restriction for sale under Land ceiling Act.

Make sure the seller has the right to transfer the property.

Check the Original Documents

Always make sure that the documents the previous owner is showing you are original and also check that if t any loans on that plot are repaid with the release certificate issued by the bank and you get the property valued for the exact land measured. It is very necessary to know which documents you need to check. The original copy of the title document including registry, allotment letter etc.are some of the necessary documents. If you will not check the original documents, there is a possibility that you may come across any fraud. Verification of the documents will give you peace of mind that you are investing your money in the right place.

Involvement of the Third Party

In the case of the third party involvement i.e. the real estate agent you should verify that is he has the legal authority or ownership/ or the power of attorney to sell the land.

Like other fields, real estate is the sector where you will find yourself in some problem as a customer. Property crimes are very common in these days. You may come across intentional fraud or any unintentional carelessness on the part of developer and you will lose your lifetime saving. Therefore it is very important that you become aware of all these frauds and be very careful in buying a plot in any housing scheme. Take your time in considering each and every step and there no need to make any immediate decision. When you will be completely satisfied with the authenticity of the housing scheme, its documents, its historic ownership and its transfer you should go ahead to buy the plot.