Safety Toolkit: 5 Common Real Estate Scams and How to Avoid Them

By Deepesh Jain

New Delhi, March 7, 2025: Buying, selling, or renting a property can be exciting, but it’s also an area where scammers often target innocent people. Whether you’re a first-time buyer, seller or a seasoned investor, staying vigilant is not just important—it’s essential.

Here are five common real estate scams and how to safeguard yourself

Fake Property Listings
The Scam: Fraudsters advertise properties they don’t own, often at irresistible prices, to lure potential buyers or renters. These listings can be found on property websites, social media and even as classified ads.

How to Avoid It: Always use a credible property listings platform, verify the property owner’s identity, visit the location in person, and never pay any advance upfront without proper property verification.

Title Fraud
The Scam: Scammers forge property documents to falsely sell or mortgage a property without the actual owner’s knowledge. They use fake identity proofs, manipulated land records and counterfeit title deeds to deceive buyers.

How to Avoid It: Conduct a thorough check on the title deed, seek legal advice, and ensure there are no pending loans or disputes against the property.

Advance Payment Fraud
The Scam: Fraudsters often request an upfront deposit before showing a property or finalizing a deal.

How to Avoid It: Never transfer any money without verifying ownership and signing a legally binding agreement. Always stick to secure payment methods.

Loan Fraud
The Scam: Fake lenders promise loans with extremely low interest rates, tricking people into paying ‘fees’; using fake websites and documents, they may appear legitimate. Once a borrower shows interest, they demand fees for processing, verification or an initial EMI.

How to Avoid It: Stick to reputable financial institutions, read the terms carefully, and avoid paying any fees before confirming legitimacy.

Fake Real Estate Agents
The Scam: A lot of times, individuals pose as agents promising exclusive deals or faster transactions. Once they gain a buyer’s trust, they charge high commissions or consultancy fees without delivering any real service.

How to Avoid It: Work only with reputed agents with good credibility in the market. Liaise with verified agents, check their credentials, and ask for references from past clients.

Real estate scams can be avoided with the right precautions. Always verify property documents, research buyers and sellers, and never make payments without doing your due diligence. Staying vigilant and well-informed can help you make smarter real estate decisions with confidence.

The author is CBO (Non-Autos), OLX India