Buying a property is one of the biggest financial decisions of a person’s life and requires a lot of research, time and planning to make a wise purchase.
With realty market gaining prominence in the UAE, the number of scams have also increased manifold. Before spending even a single dirham on a property, you should know of all the tactics that the scammers adopt to cheat the property buyers.
Let's have a look at the six types of property scams against which you need to be vigilant when buying a house in Dubai.
1: Ownership Fraud:
The fraudulent developers try to dupe buyers by furnishing fake ownership documents. They try to impersonate as the real owner of the property, even if they do not have any claim on it.
In such a case, they produce fake documents which show the scammer as the genuine owner of the property.
Before buying a particular property, the buyer must check the ownership or title documents in original, and get them verified with a sub-registrar office.
If the property seller is not willing to produce original title certificates, buyers must consider it as a warning/a red signal and should immediately back out from the deal.
2: Mortgaged Property Sale:
Another popular tactic that property scammers use is to sell a property that is already mortgaged with some bank. The scammers first acquire a land for sale in Dubai or property and get it mortgaged to a bank. After this, they sell it to an innocent buyer, and then elope. The buyer, thus, gets entangled under the law.
3: Unauthorized Construction Fraud:
It is very common for developers to start construction on a land that is legally unauthorized for any construction. After developing and selling properties on such a land, the developers then run away with the money paid by the investors.
Before investing in any off-plan project, the investors must verify with concerned departments about the genuineness of the construction site.
4: Deal with authorized property agents only
While buying a property in Dubai, you need to be watchful - not all the property agents in Dubai can be trusted blindly.
Make sure to check that the property agent you’re planning to work with is registered with Dubai’s real estate regulatory body RERA.
To avoid getting duped, try to deal and consult with only the top property agents of Dubai.
5: Fake Property Documents:
Some scammers try to fool their customers by furnishing fake property papers. They produce these in the form of Xerox copies. So, before you give green signal to these certificates, it is necessary to check their validity and genuineness.
Ask your dealer the original copies of all the certificates. Look for the signatures on every page and match them.
6: Mismatch of Layout and Actual Construction:
Never invest with a real estate development firm you haven’t heard about much – always deal with the experienced and reputable ones only.
Some developers and builders often build extra floors or rooms not shown in the approved layout. Never go for a property that shows a mismatch between the layout and the actual construction as this can put you in trouble in the future.