Real estate is one of the most lucrative and sought-after investment options, but it also attracts fraudsters and scammers looking to exploit unsuspecting buyers, sellers, and investors. In Ahmedabad, where real estate is booming, it’s crucial to be aware of common property scams and how to safeguard yourself against them.

Whether you are purchasing a home, investing in a commercial space, or selling a property, understanding these fraudulent practices can help you avoid financial losses and legal troubles. This guide provides a detailed look into the most common real estate scams in Ahmedabad and practical ways to prevent falling victim to them.

 

1. Fake Property Listings and Online Scams

How the Scam Works:

With the rise of online property portals, many fraudulent listings appear with fake prices, attractive images, and unrealistic offers to lure buyers. Scammers pretend to be real estate agents or property owners and demand an advance payment or deposit to secure the deal.

Warning Signs:

• The property is significantly cheaper than market rates. 
• The listing has no real contact information or verification details. 
• The seller asks for an upfront payment without showing the property. 
• The owner claims to be out of town and can’t meet in person. 

How to Avoid It:

 ✅ Always verify the listing through property visits and legal documentation.
✅ Use trusted real estate websites that verify their listings.
✅ Never transfer money without a signed agreement.
✅ Work with a reputed real estate agent to confirm property legitimacy.

 

2. Title Fraud and Fake Ownership Documents

How the Scam Works:

In this scam, fraudsters forge property documents and sell properties that they don’t own. Sometimes, they use stolen identities or fake NOCs (No Objection Certificates) to appear as legitimate sellers.

Warning Signs:

• The seller hesitates to provide original documents. 
• The property has been sold multiple times in a short period. 
• The deal is rushed with pressure to pay immediately. 
• Ownership details do not match official government records. 

How to Avoid It:

 ✅ Conduct a title search at the local revenue office to verify ownership.
✅ Request original property papers and check them carefully.
✅ Verify the seller’s identity, Aadhaar, and PAN card.
✅ Get a legal expert to validate documents before purchasing.

 

3. Delayed or Stalled Projects by Builders

How the Scam Works:

Some builders launch attractive pre-launch offers for under-construction projects and fail to complete them on time or abandon the project after collecting buyers’ money.

Warning Signs:

• The builder has a history of delayed projects. 
• Construction is significantly behind schedule. 
• There is a lack of approvals from local authorities. 
• The project is not RERA-registered. 

How to Avoid It:

 ✅ Always buy from a RERA-registered developer.
✅ Check the builder’s past projects and delivery history.
✅ Read the agreement carefully for penalty clauses on delays.
✅ Avoid investing in unapproved or pre-launch projects without proper verification.

 

4. Illegal Land Sales and Encroached Properties

How the Scam Works:

Fraudsters sell government land, agricultural plots, or disputed properties without proper approvals. Many buyers later realize they bought a property they can’t legally own or use.

Warning Signs:

• The seller is unable to provide legal approvals. 
• The land is part of a restricted or disputed area. 
• The property has no clear land title or zoning approvals. 
• The deal is offered at a much lower price than market value. 

How to Avoid It:

 ✅ Verify the land title, ownership history, and legal approvals.
✅ Check with the local municipal corporation for land zoning status.
✅ Hire a real estate lawyer to confirm property legality.
✅ Avoid cash transactions for property deals.

 

5. Advance Deposit and Token Money Fraud

How the Scam Works:

Scammers demand an advance deposit or token money to “secure” a deal and then disappear without completing the transaction.

Warning Signs:

• The seller insists on immediate payment before paperwork is finalized. 
• The agent or owner avoids a formal written agreement. 
• There is no verifiable proof of ownership. 

How to Avoid It:

 ✅ Never pay token money without a legal agreement.
✅ Use cheques or bank transfers instead of cash for transparency.
✅ Always ensure the payment terms are clearly mentioned in the contract.

 

6. Fake Real Estate Agents and Brokers

How the Scam Works:

Unlicensed or fake real estate agents claim to offer exclusive deals and charge high commissions or hidden fees without providing legitimate property options.

Warning Signs:

• The agent has no proper office or professional credentials. 
• They avoid signing a written agreement for their services. 
• They make unrealistic promises about property appreciation. 

How to Avoid It:

 ✅ Work with registered, experienced agents.
✅ Demand a proper agreement outlining commission and services.
✅ Cross-check their credentials with local real estate associations.

 

7. Fake Loan Approvals and Mortgage Fraud

How the Scam Works:

Some fraudsters pose as loan agents and promise easy home loans with low-interest rates. They ask for processing fees but disappear after receiving the money.

Warning Signs:

• The loan provider asks for large upfront fees. 
• The interest rate is too good to be true. 
• The lender is not affiliated with any recognized financial institution. 

How to Avoid It:

 ✅ Only approach RBI-registered banks and NBFCs for home loans.
✅ Never pay advance processing fees to unknown lenders.
✅ Check loan details on the bank’s official website.

 

8. Substandard Construction and Hidden Defects

How the Scam Works:

Some builders use low-quality materials or cut corners during construction, leading to structural defects that become visible after purchase.

Warning Signs:

• The builder refuses to provide a construction quality report. 
• The property has leakages, cracks, or weak infrastructure. 
• The builder is not offering a warranty period. 

How to Avoid It:

 ✅ Inspect the construction quality before buying.
✅ Get a structural engineer to assess the property.
✅ Ask for a written warranty on major repairs.

 

Final Thoughts: Protect Yourself from Real Estate Scams in Ahmedabad

Real estate scams can lead to huge financial losses and legal battles, so it’s essential to stay alert and informed. Always verify property documents, research the seller’s credibility, and seek professional legal advice before signing any agreements.

If you’re looking for trusted and transparent real estate transactions, consider working with AroundTown Realty. Our experienced team ensures you find verified properties and avoid fraudulent deals.

📞 Contact AroundTown Realty today for expert guidance and secure real estate investments in Ahmedabad!

 

FAQs on Real Estate Scams

1. How can I check if a property in Ahmedabad is legally valid?
   You can check a property’s legal status by verifying ownership documents, municipal approvals, RERA registration, and title clearance with the local authorities.
2. What should I do if I suspect a real estate scam?
   Report it to the police, consumer court, or local real estate regulatory authorities like RERA Gujarat. Also, consult a real estate lawyer for legal guidance.
3. Are all online property listings safe?
   Not all online listings are genuine. Always visit the property, verify the owner’s identity, and check legal documents before making any payments.
4. How do I ensure a builder will complete an under-construction project?
   Choose projects registered under RERA, check the builder’s track record, and ensure the sale agreement has penalty clauses for delays.
5. How can I protect myself from fake real estate agents?
   Always verify the agent’s credentials, check their reputation online, and insist on a written agreement before dealing with them.