27th, Apr, 2025

How to Avoid Property Scams in India: A Complete Guide for Home Buyers

Buying a property is one of the biggest decisions in life. But in India, many homebuyers become victims of property frauds and scams due to lack of awareness. From fake documents to illegal construction, there are several ways fraudsters cheat innocent buyers. In this article, we’ll explain how to avoid property scams in India in simple language, so you can make a safe and smart investment.

What Are Property Scams?

Property scams are frauds where people sell properties using false documents, hidden legal issues, or unauthorized construction. These scams often target first-time homebuyers who are unaware of real estate laws and property verification steps.

Most Common Property Frauds in India

Here are some popular ways property scams happen in India:

1. Selling Property Without Ownership
   Fraudsters sell land or houses that don’t legally belong to them using fake papers.

2. Duplicate Sale of Same Property
   One property is sold to multiple buyers with different agreements.

3. Fake Real Estate Agents or Builders
   Many unregistered builders lure buyers with fake promises and never deliver the project.

4. Illegal Land or Unauthorized Construction
   Builders sell flats built on government or disputed land without proper permissions.

5. Missing Approvals
   Projects without RERA registration, municipal approvals, or environmental clearances are risky.

Read More: How to Calculate Market Value of Property in India

How to Avoid Property Scams in India: Easy Tips

Here’s how you can stay safe while buying any property – flat, land, or house.

1. Check Ownership Documents

• Ask for Sale Deed, Title Deed, and Property Tax Receipts.

• Verify if the seller has legal ownership.

• Cross-check with the Sub-Registrar Office.

2. Verify Property at Local Authorities

• Visit Municipal Office or Tehsil Office to verify land records.

• Check for any litigation, disputes, or pending loans on the property.

3. Demand RERA Registration Number

• Check if the project is registered on the official RERA website of your state.

• This protects buyers under the Real Estate Regulation Act (RERA).

Read More: What to Check Before Buying Under-Construction or Ready-to-Move House

4. Check Encumbrance Certificate (EC)

• EC tells you if there are any legal dues or loans on the property.

• Get it from the sub-registrar’s office for the past 15–30 years.

5. Hire a Legal Expert

• Always get your documents verified by a property lawyer.

• They can detect fake documents or legal loopholes.

6. Avoid Cash Transactions

• Always pay through bank transfers or cheques.

• Take receipts for every payment.

7. Check Builder’s Past Projects & Reviews

• Google the builder’s name and look for online reviews.

• Visit their older completed sites to verify quality and delivery timelines.

8. Demand All Property Approvals

Ask for:

• Building plan approval

• Environmental clearance

• Completion Certificate (CC)

• Occupancy Certificate (OC)

• NOC from water and electricity departments

9. Don’t Fall for Unrealistic Offers

• If the deal sounds “too good to be true,” it probably is.

• Avoid buying land at extremely low rates or under “urgent sale” pressure.

Online Tools to Check Property Legality in India

• RERA website (State-wise)

• Bhoomi Karnataka for land records

• MahaBhulekh for Maharashtra land records

• Dharani Telangana portal

• [MP Bhulekh, UP Bhulekh, Bihar Bhumi – State land portals]

Use these websites to verify land ownership, mutation status, and encumbrance.

Final Words: Stay Smart, Stay Safe

Property scams in India are common, but if you stay alert and follow legal steps, you can protect your money and future. Always verify documents, check RERA registration, and take help from a legal advisor. Never rush into deals without full verification.

Remember: It’s better to be slow and safe than fast and sorry.

Pro Tip from HouseGyan:

Use online tools and property calculators available on trusted sites like HouseGyan to plan your budget, estimate costs, and get expert guidance before buying.