NRIs are unfortunately frequent targets of property fraud in India. Distance, language barriers, and unfamiliarity with local systems create opportunities for unscrupulous sellers. Here's what to watch for.
1. The "Power of Attorney" Trap
How it works: A family member or agent holds a general Power of Attorney (PoA) and sells property without the actual owner's knowledge. Or the PoA is forged.
Protection:
- Verify the PoA is notarized and registered
- Check if it's a general or specific PoA
- Confirm directly with the property owner if possible
2. Same Property, Multiple Buyers
How it works: A fraudster sells the same property to multiple buyers, collects payments, and disappears before registration.
Protection:
- Always register the sale deed immediately
- Check for pending agreements to sell
- Verify the seller actually owns the property before paying
3. Forged Documents
How it works: Fake sale deeds, Jamabandi copies, or mutation orders are created to show false ownership.
Protection:
- Cross-verify all documents with original government records
- Check the Sub-Registrar's office for registered documents
- Look for inconsistencies in stamps, signatures, and formats
4. Disputed Properties
How it works: Property with ongoing court cases, family disputes, or legal claims is sold without disclosure.
Protection:
- Search for any court cases involving the property
- Check if multiple family members have claims
- Verify there are no revenue court attachments
5. Fake Sellers / Identity Fraud
How it works: Someone impersonates the actual owner using fake ID documents.
Protection:
- Verify seller's identity through multiple documents
- Meet the seller in person if possible
- Cross-check with neighbors or local contacts
6. Encumbered Properties
How it works: Property with an existing bank loan or mortgage is sold without disclosing the debt. The buyer later finds the bank has a claim.
Protection:
- Check for encumbrance certificates
- Look for mortgage notations in revenue records
- Verify with major banks if unsure
7. Benami Transactions
How it works: Property held in someone else's name (benami owner) is sold by the real owner, but the transaction later falls apart due to legal issues.
Protection:
- Trace the complete ownership history
- Look for suspicious patterns in ownership chain
- Be wary of very recent ownership changes
Warning Signs to Watch For
⚠️ Seller is in a hurry to complete the sale
⚠️ Price is significantly below market value
⚠️ Seller avoids direct communication
⚠️ Documents have inconsistent information
⚠️ Reluctance to provide original documents
⚠️ Only dealing through agents, never the owner
Concerned about a property you're considering? Let ScanMyProp verify it before you commit.