The real estate business in Pakistan is notorious for being riddled with fraud. Many individuals have forfeited their hard-earned funds to fraudulent schemes that appeared to be significant investment prospects.
The increasing rise in such misconduct has resulted in significant financial losses for naïve investors. In many situations, they entail acquiring assets that do not occur or that the vendor does not truly possess.
Real estate is a booming industry in Pakistan. However, this industry is not immune to malpractice. When most people think of malpractice, they think of medical errors. But did you know that malpractice can happen in other professions, too? Today, we will discuss some of the real estate’s most common malpractice practices.
There needs to be a foolproof method for verifying the qualifications of the parties engaged in a purchase of a property. As a result, fraudsters have a pretty simple time duping naïve consumers. Illegal encroachment is one of the most common malpractices in the Pakistani real estate industry. This occurs when someone builds on land they do not own or have permission to build on. This often happens in rural areas, where people make it on government-owned land.
Lack of Verification
Fake documents are another common fraud in real estate deals. In such circumstances, the advertised property does not pertain to the vendor claiming it. They defraud buyers by creating and presenting forged papers. As a result, it is critical to thoroughly examine any property papers to guarantee that they are appropriately owned by the individual claiming them. Another common malpractice is the illegal subdividing of land. This is when a piece of land is divided into smaller plots and sold without the proper permission from the government. This can lead to problems with infrastructure problems and legal issues for the buyers of these subdivided plots.
Another common issue in the Pakistani real estate industry is fraud. This can take many forms, but some common examples include false advertising, misrepresentation of properties, and title fraud.
False advertising refers to misleading claims about a property to get people to buy it. Misrepresentation of properties happens when the seller deliberately withholds information about a property, such as its proper condition or ownership status. Title fraud occurs when someone tries to sell a property they do not own. This can be very difficult for buyers to catch, so it is essential to be careful when buying property in Pakistan.
Myths in Real Estate
If you’re thinking of buying or selling a home, you’ve probably heard some horror stories about real estate agents. Unfortunately, many things need to be clarified about the industry that can deter people from working with a professional.
Myth #1: Agents Only Care About the Commission
This is the most common myth about real estate agents. While it’s true that agents do receive a commission, they also have a vested interest in making sure their clients are happy. A satisfied client is more likely to recommend an agent to their friends and family, which is how most agents grow their business. Furthermore, many agents get repeat business from their clients, so it’s in their best interest to ensure they’re providing top-notch service.
Myth #2: Agents Will Try to Push You into a Quick Sale
Many people believe that real estate agents will push them into accepting a low offer or selling their home for less than it’s worth so they can collect their commission and move on to the next client. Again, this isn’t true! A good agent will always have your best interests at heart and only recommend selling your home if they genuinely believe it’s the right move for you. After all, their reputation is on the line—if they start getting a reputation for pushing people into bad deals, they won’t be in business for very long.
Myth #3: You Don’t Need an Agent If You’re Selling Your Home
According to the National Association of Realtors, sale-by-owner transactions account for just 8 per cent of all home sales. So, while it is possible to sell your home without an agent, most people choose to work with one. And for a good reason! An experienced agent knows how to market your home, negotiate with buyers, and handle all the paperwork to close the deal. Working with an agent typically costs nothing out of pocket—the seller pays the commission when the home sells.
Myth #4: All Agents Are Created Equal
If you ask around, you’ll find that everyone has a different opinion on which real estate agent you should use. The truth is that not all agents are created equal. Some are better suited to certain situations than others. When looking for an agent, be sure to interview several before making your decision. Ask each one about their experience level, what type of homes they specialise in, and what areas they serve. It’s also a good idea to read online reviews from past clients to understand what kind of service you can expect.
And remember: If an agent isn’t willing to answer your questions or provide references from past clients, that’s a red flag!
When buying or selling a home, don’t let common malpractice myths stop you from working with a professional real estate agent! With years of experience and industry knowledge under their belts, Hashi Group of Companies has the tools and resources necessary to help you accomplish your real estate goals, whether finding the perfect home or getting top dollar for your property. And contrary to popular belief, Hash Real Estate and Builders are honest and reputable professionals who have your best interests at heart, not just their commission check!