Safeguards against Property Fraud

Land and buildings are valuable lifetime assets that people possess and can be sold or mortgaged to raise money in case of an emergency. Hence, they are subject to being misused by fraudsters. Property fraud has a greater possibility of occurring in several situations.  There are several measures that property owners need to take to safeguard themselves against property fraud.

There are several situations where property fraud has a greater possibility of occurring.

• When there is a break-up in a relationship, particularly between spouses.
• When the property is empty or has been bought to be let out.
• When the owner is out of the country or is residing in a different place.
• When the owner is infirm or is hospitalised.
• When the property cannot be mortgaged any longer.

If a property owner becomes the victim of property fraud in any of these cases or is susceptible of ending up being one, he can seek the advice of a legal expert. There are different measures that a property owner can take to safeguard his property from being a target of fraud based on the situation

1. When buying or booking under-construction property:

The property buyer should ask the developer for the Commencement Certificate of the property. This is generally issued by the local authority. This document ensures that the developer has complied with all the by-laws specified and there is no dispute with regards to the ownership of the land. It also certifies that the developer can commence construction on the property as all required permissions have been granted. Besides, it also specifies the maximum number of floors the developer is permitted to construct on the property.

It has been commonly seen that many projects are launched in a grand manner. However, many of them are stalled or canceled mid way through the project due to the lack of permissions necessary for construction. By this time many buyers who had booked for the project would already have fallen victims to this fraud. Many buyers may seek land registration as well as layout documents. However, these documents would be inconsequential without a Commencement certificate.

2. When buying a fully constructed or resale property:

The property buyer should ask for a Occupation Certificate while buying a fully constructed or resale property. This document is issued by the local governing body. It certifies that the building has been built as per the rules and by-laws pertaining to the locality and is fit for occupation by a large number of people.  Unless the occupation certificate is received a property should not be bought.

There may be instances where you will find a large number of people residing in a building without being granted the Occupation certificate for the same. It may be possible that such buildings have been constructed without the approval of the local authority and may not be fit for residential purposes. In such cases, the residents may be issued notices to vacate the property as it would have to be demolished.

The authenticity of these documents can be verified through a legal expert.