Introduction
A person collects and saves pennies to fulfill his desires. One of them is having his own property. He buys property from the seller but falls on the bait of fraud. Though there is a sale deed, still he doesn’t get possession.
Fraud happens to many people. But those who are aware and make inquiries about the property, escape fraud. Here are some common property frauds and tips to prevent them.
3 types of fraud while buying property
Title Fraud
A common legal principle is Nemo dat quad non habet. This means no one can give a better title than he himself has. Seller of property does not have title/right to sell the property.
- Joint property
2 people are owners of a property. They have divided interests. But the buyer gets to communicate with only one of them. Buyer buys property from one owner and other owner claims against it. This is title fraud, where title over property is disputed.
- Property already alienated
The owner of the property has created interest in another’s name, through lease/mortgage/sale. Simultaneously, he sells the same property to the buyer. Ideally, the seller cannot do so as his rights over property were already limited.
- The person having limited right in property
A tenant temporarily stays on a property. He tries to sell the property, misrepresenting himself as the owner. The tenant cannot do so as he is not the absolute owner.
Possession Fraud
When a person is the owner of the property but does not live there, possessory rights are with another person.
- Tenancy
The owner has given the property for rent. The tenant is not vacating the property. The owner sells the property so the buyer asks the tenant to vacate it.
Fraud using Power of Attorney
Legal document giving a person authorization to act on behalf of the principal. The scope of legal authority granted by POA is laid out when established.
The person having POA can only manage the property. It is not right to buy a property through the POA. Seller tries to evade tax liabilities while selling property.
- Determining ownership
The owner has given POA to someone and authorized him to sell the property. How will the seller know about the actual owner?
- Differences between owner and attorney
What if issues arise between owner and attorney? or if POA is canceled/revoked? and if a real owner dies? The title of the property is again at stake.
Solutions
For title frauds
Legal advice
If you aspire to buy a property, you first need a lawyer. He will look over documents and guide you through clean purchases. This will help you keep away from deceit/fraud/counterfeit documents.
Do your research
- Try to inquire about the real owner of the property.
Check the title before buying the property. A lawyer will help you with this.
- Verification of property and real owner is necessary.
Verification of documents as to their authenticity will save you from fraud.
- Check land revenue records
If the property is not registered in the seller’s name, check land revenue records. You will get to know the real owner of the property.
- Mutation
Check whether the property is mutated on the seller’s name or not.
For possession frauds
Visit the property
To be sure that the seller is the owner as well as the possessor of the property, visit the site. Confirm that the property is not rented or does not have any encumbrances.
- Talk to neighbors
People living around that property will surely tell truth about it. Inquire about the owner, his behavior, etc.
For POA frauds
Payment to real owner
You know that you are buying property through the POA. Always pay money to the person who has given POA. This way he cannot deny that he was the real owner, who gave the POA to someone.
Advertisement in Newspaper
Before buying property through POA, you can give add in the newspaper. You can inform us that you are buying a particular property. If anyone has a problem or claim, then contact us.
Copy of sale deed to the real owner
Once you execute a sale deed with a person having a POA, send its copy to the real owner. This will notify the person who gave the POA to another that he sold the property.
CONCLUSION
While buying property, you need to be extra cautious. To avoid unnecessary property litigation, verify that the property you buy does exist. Avoid any counterclaim, and check the real owner and seller are the same person. To keep away from fraud, follow the above tips.
If still doubts persist, contact Legal Experts at https://www.aapkaconsultant.com/legal-opinion-legal-shots
