Property buyers should not rely only on appearances, verbal assurances, possession, registration, or photocopied documents. Verification must be appropriate to the specific property, parties and transaction.
1. Fake Ownership
A person may offer a property without being its lawful owner or may rely on forged or manipulated documents. Verify the seller’s identity, authority and chain of title independently.
2. Double Sale Fraud
The same property may be promised or sold to multiple buyers. Review prior agreements, registrations, possession claims and relevant transaction records.
3. Hidden Mortgage
A property may already secure a loan or debt that the seller has not disclosed. Enquire into mortgages, charges, original documents and relevant registry information.
4. Family or Inheritance Disputes
Other legal heirs or family members may assert ownership or challenge the seller’s authority. Succession history and the rights of relevant parties require review.
5. Unapproved Construction
A building may lack a sanctioned plan, completion approval or permission for its actual construction or use. Compare municipal approvals with the site.
6. Fake Power of Attorney
A fraudulent, revoked, limited or ineffective power of attorney may be used to claim authority to sell. Verify the instrument, principal, continuing validity and powers granted.
Precautions Before Paying
- Verify identity, ownership and authority independently
- Inspect original documents and understand who holds them
- Review title and transaction history
- Investigate mortgages, charges, litigation and notices
- Check sanctioned plans, taxes, possession and property description
- Record important representations, payments and conditions
- Use qualified legal and technical professionals
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