10 Simple Ways to Avoid Real Estate Frauds in Pakistan
10 Simple Ways to Avoid Real Estate Frauds in Pakistan
Author: Fazal Muhammad Bhutto Advocate High Court.
Investing in real estate is one of the most significant financial decisions people make in their lives. Unfortunately, it is also one of the most common areas where fraud and scams occur, especially in countries like Pakistan where documentation systems and legal enforcement can sometimes be weak or misused. If you’re planning to buy a house, plot, or commercial property in Pakistan, being aware and taking precautionary steps is crucial to protect your investment.
Below are 10 practical and effective ways to avoid falling victim to real estate frauds in Pakistan.
- Verify Property Documents Thoroughly
Always ask for the original property documents including the sale deed, title document, Fard (Record of Rights), and Registry. Match all details—area, owner’s name, and plot number—with official land records. Don’t rely on photocopies.
- Confirm the Seller’s Identity
Ask for the seller’s original CNIC and verify it via NADRA if needed. If the seller is acting through a power of attorney, confirm its validity from the concerned registrar office and ensure it’s not revoked or expired.
- Check for Legal Disputes
Make sure the property is not under litigation or subject to any legal dispute. You can inquire at the local civil courts or with the property registrar to ensure the title is clean.
- Avoid Dealing with Unverified Agents
Only engage with registered and reputed property dealers. Ask for their license or registration details and read online reviews or ask for client references. Avoid agents who refuse to provide complete details or rush the process.
- Inspect the Property Physically
Visit the property in person. Cross-check its location, boundaries, and physical features with what’s mentioned in the documents. Be wary if the seller refuses to show you the actual site.
- Confirm Approvals from Authorities
If it’s a plot or house in a housing society, ensure the society is approved by the relevant development authority (e.g., CDA, LDA, SBCA). Ask for the society’s NOC and layout plans.
- Use Bank Channels for Transactions
Avoid cash payments. Make all payments via cross cheques, pay orders, or bank transfers for legal proof. Always get written receipts for every transaction.
- Hire a Real Estate Lawyer
Engage a professional lawyer to review all documents and advise you throughout the transaction. A lawyer can help identify any red flags and protect your legal rights.
- Don’t Rush into Advance Payments
Never pay a token or advance without a written agreement and confirmation of ownership. Fraudsters often vanish after taking early payments.
- Ask for Mutation and Transfer Proof
Once the property is bought, ensure the mutation (Intiqal) and transfer of ownership are completed in the official land record. Follow up until your name is officially recorded as the owner.
Conclusion:
In Pakistan’s complex property market, vigilance and verification are your best tools. A little effort in due diligence can save you from years of legal battles and financial losses. Whether you are a first-time buyer or an experienced investor, following these steps can help you make safer, smarter real estate decisions.
