Real estate is
growing at exponential rates in Dubai and has become one of the safest
investment opportunities for people. When the whole world was suffering from
the damages that happened at the time of the pandemic, the incredible protocols
by the Dubai government changed the fate of the country. Investors from the
world showed interest and started investing in real estate. According to the
reports, transaction levels totaling at the end of 2021 were $24 billion, which
was 22.6 percent higher than the transactional record for the entire year of
2020.
What are Real Estate Scams?
Whenever
an industry starts growing, predators are always there to hunt. The same
happened with the real estate industry and scams
in Dubai increased day by day.
When individuals or organizations provide false information for real estate
transactions, this is referred to as a real estate scam.
Types of Real Estate Frauds
To avoid
a problem, you must know the root cause. There can be many types of real estate
fraud such as rental fraud, deed fraud, and many more. A seller may provide
false information about the square feet and amenities of the home they are
selling, there can be false documentation. Let's take a look at all those
frauds that you must avoid.
Unreliable Agents
One must
never ask about the journey from the person who has never traveled because he
cannot give proper directions. You may have seen street brokers roaming around
and promising people about buying and selling properties. They are fraudulent
and you should never trust them.
Fake Websites
You may
have gone through the real estate websites that are not verified. You have to
give your personal information that can be used for criminal purposes. You must
stay away from such scams.
Deed Fraud
This also
falls under the category of scams in
Dubai. When criminals record fraudulent deeds, mortgages, or other legal
claims against a property without the owner's knowledge or consent, this is
known as deed fraud. Anyone can be a victim of this so you must be aware of
these frauds.
Wire Money
If
someone asks you to wire money for the transaction then it can be a telltale
sign of a scam. It is not easy to track records of such transactions and it can
be harmful to your investment.
Fake Ads
Due to
the fast pace of technology, access to the internet becomes very easy. Anyone
can make an ad and run that. Some unprofessional people are sitting at their
homes and know nothing about the market but try to indulge in it. If you see
any ad that is not authorized by a good company, you should ignore it.
Unclaimed Property Scams
This is
also included in real estate property
scams and is most common. Many people try to sell property that is
not even registered. If a seller gives you any proof or arguments, still you
must see the registration documents before taking any step.
Low-cost Prices
If
the price seems too good to be true, then you must walk away. There are criminals
out there who try to sell property that is not even theirs. So, they offer a
lower price that attracts buyers. Instead of getting a charm from such low
prices, you must avoid them.
Duplicated Listing
Real
estate listing platforms pop up daily, and it's nearly impossible to tell the
difference between the real and the fake. Criminals will use a listing platform
to imitate legitimate property listings and offer low prices for them. Beware
of such listings!
Fake Property Lawyers
Most
individuals believe that an attorney is the only professional they require when
purchasing real estate. Criminals build fake accounts and sell themselves as
property lawyers on a variety of platforms. Because your lawyer will hold some
of your property's purchase funds until the agreement is closed, the fraudulent
lawyers will steal the funds you've set aside for your real estate investment.
False Real Estate Companies
Beware of
the real estate companies that aren't registered. There are chances of scams
that you will regret in the future. Always trust those companies who have built
their trust in the market from past years. One of the best real estate
companies in Dubai is Ahyan Real Estate which is trustworthy and will guide you
about everything in the market. To know more, visit Ahyan
Real Estate.
Precautions to avoid Real Estate Property Scams
You must
be wondering, there are many scams in the market but, “how to avoid them?”.
Here is the complete information that will guide you about such scams.
Ejari is Mandatory
It is the
legal requirement that your tenancy contract is registered. Ejari was
established by the Real Estate Regulatory Agency (Rera), the regulatory arm of
the DLD (Dubai Land Department), to make Dubai's rental market one of the most
transparent in the world. If your agent tries to ignore it, then it is a red
flag to avoid him.
Find an actual Owner
Before
taking any steps about buying or selling the property, you must know who is the
actual owner. You must personally meet him and discuss the matter.
Visit Property
To avoid
real estate property scams, you must visit the property by yourself. Never
trust an agent or any other person for this purpose. You are the one who is
investing your money so you should not be hesitant to invest time.
Do your Research
Knowledge
is power and there is nothing that can beat it. You must do your market
research before jumping into the market. The more you know, the less you will
be duped.
Seek Professionals
Professionals
know more than commoners. So, you should take advice from them. Always trust an
agent who has a license and is attached to a good firm. They can guide you
about market rates and help you in taking the best decision of your life. While
dealing in the market, you must keep the following points in mind.
- Always sign the
written document
- avoid money in
cash
- Analyze the market
rates by yourself
- See transparency
in property
- Trust a
professional
- Investigate the
agency
