What Are the Most Common Property Frauds in India? 10 Scams Buyers Should Know

Power of Attorney (POA) can authorize someone to act for another person, but buyers must verify the document's authenticity, scope, validity and the authority it actually grants. The Registration Act contains provisions concerning the presentation of documents through duly authorized agents and the recognition of powers of attorney.

Check:

• Who granted the POA
• Whether it is valid
• What powers it grants
• Whether it has been revoked
• Whether the proposed transaction is authorized

Key takeaway: Never treat a POA as automatic proof of ownership.

5. Hidden Loans, Mortgages and Encumbrances

A property may carry registered financial interests or other encumbrances that a buyer needs to identify before purchase. An Encumbrance Certificate can help reveal registered transactions for the relevant period, but it should not be treated as a complete guarantee of legal clearance.

Key takeaway: Review the EC alongside title, ownership and other relevant records.

6. Seller Impersonation and Identity Fraud

In impersonation fraud, someone falsely presents themselves as the property owner or an authorized representative. This can be especially risky where the genuine owner is unavailable, deceased, overseas or represented through an agent.

Verify the seller's identity against ownership and registration records.

Key takeaway: Match the person's identity with their legal authority to sell.

7. Fake RERA Claims and Builder Fraud