Have you had enough of dishonest real estate practises? Do you know that sixty percent of the horizontal projects that already exist across the country are awaiting approval?
It is common knowledge that the field of real estate in Pakistan is riddled with cons all throughout the industry. Many people have been victimised by fraudulent schemes that, at first glance, appear to be lucrative investment opportunities; these schemes have caused them to lose their hard-earned savings.
The recent uptick in instances of such unethical business practises has resulted in significant monetary losses for naive investors. These transactions frequently involve the sale of properties that do not actually exist or that are not actually owned by the person conducting the transaction.
We have compiled a list of the real estate industry’s most widespread unethical practises across the country, as well as suggestions for avoiding these practises.
Common forms of unethical behaviour in the Pakistani real estate market:
The following is a list of some of the most common types of fraud that occur in the real estate industry in Pakistan:
- Insufficiency of Verification
- False Listings
- Documentation that is Not Accurate
- Trick and Take Advantage of Unreliable Agents
Insufficient Verification of the Property
The failure of buyers and sellers to conduct adequate verification is one of the primary factors contributing to the widespread incidence of unethical business practises in Pakistan’s real estate market.
There is no failsafe method available for verifying the credentials of the parties involved in a transaction involving real estate. As a direct consequence of this, con artists find it relatively simple to take advantage of naive people.
In order to better protect the general public from being defrauded, the government needs to take steps to improve the verification process for real estate. In addition, people need to exercise increased caution when dealing with transactions involving real estate. Before putting their hard-earned money into any property scheme, they ought to perform the research necessary to make an informed decision.
False Listings
A businessman using a computer for real estate transactions, including property sales and listings, real estate agencies and contractors, residential properties, investments, housing projects, property development, and online house purchases.
Over the course of the past few years, there has been a rise in the quantity of fraudulent listings that can be found in Pakistan.
If you believe that you may be the target of such a con, there are a few red flags that you should keep an eye out for. First things first, verify that the listing can be found on a trustworthy website. If it is not, then you should assume that it is a fake. The second thing you should do is look into whether or not the seller or the property has any reviews.
You should also make an effort to get in touch with the person who is listing the property; if they do not respond to your messages or if you are unable to locate any information about them, it is highly likely that the transaction is a scam. Last but not least, do not enter into any agreements before first personally inspecting the property and conversing with the seller.
Documentation that is Not Accurate:
Another common con that takes place during real estate transactions involves the use of forged documentation. In situations like this, the seller who is claiming ownership of the property does not actually own the property. They deceive purchasers by preparing and presenting fake documents to purchase transactions.
As a result, it is essential to conduct a comprehensive check of all the property documents in order to establish beyond a reasonable doubt that the individual asserting ownership rights has the legal right to do so.
If you want to find out more about the implications of the deal from a legal standpoint, you should speak with an experienced attorney or legal firm. You should never accept or sign a document that makes you suspicious; instead, you should always check it first.
The Old “Bait and Switch”
Another common unethical business practise is known as the “bait and switch,” which occurs when a seller makes an alluring offer but has no intention of actually selling the item. Instead, the vendor will supply a replacement item of inferior quality.
Scams of this nature can be found in a wide variety of business sectors; however, the real estate industry is particularly susceptible to them due to the high value of properties and the time-consuming process that is involved in purchasing or selling a home. It is important to be aware of the signs related to this type of con in order to avoid becoming a victim of it, as the costs incurred by victims can be quite high.
If you are thinking about purchasing real estate in Pakistan, you should make sure to do your homework and collaborate with a reputable real estate advisor in order to protect yourself from falling prey to a bait and switch scam.
Unreliable Agents:
Another difficulty that commonly occurs in this industry is locating a trustworthy real estate advisor. There are a lot of shady real estate agents out there who are more than willing to take advantage of unsuspecting customers.
It has been known for financial advisors to simply vanish with a client’s money while simultaneously failing to deliver on their promise of high returns. Because of this, it is essential to proceed with extreme caution whenever conducting business with real estate agents in Pakistan.
If you want to buy real estate in Pakistan, you should do your homework and only deal with agents who have a good reputation in the market. It is also a good idea to ask for referrals from friends or family members who have dealt with them in the past and have personal experience.
Other Concerns Regarding Investments in Real Estate in Pakistan
Investors are deterred from putting their hard-earned money into the real estate market for a variety of other reasons as well, which include the following:
- Uncertain economy
- Instability in political systems
- Changes in the value of the dollar
- A lack of confidence in the developers.
What Does It Mean to Invest Right?
You need to make educated investment decisions in commercial and residential real estate if you want to avoid the malpractices that are common in the real estate industry and get past the challenges that are associated with the real estate market.
In addition to this, you must have a comprehensive understanding of both microeconomic and macroeconomic theories and frameworks while utilising various practical analysis tools. The vast majority of people make investments without first conducting adequate research, which ultimately results in significant financial losses.
As a result, Propsure has devised a solution for this problem; the company is the first in Pakistan to provide online property verification and inspection services. In addition to that, it offers a wide variety of additional services, such as feasibility studies, forensic audits, technical advisory, and data as a service.
In addition, Propsure possesses the most comprehensive spatial database for the real estate industry in Pakistan, in addition to a cutting-edge digital map of the entire country.
One such solution is called Invest Right, and it offers technology-driven real estate investment advice to address the one-of-a-kind challenges faced by the real estate sector in Pakistan. This solution provides a comprehensive understanding of the real estate sector in Pakistan.
It makes it possible for prospective investors to gain a deeper comprehension of complicated topics such as finance, tax laws and zoning, mortgages, insurance, and business packages.
Propsure assists its valued investors and partners in understanding the dynamics of the industry in order to make informed decisions regarding real estate investments and developments with the help of its Invest Right programme.
