Will licensing brokers save you from fraud?
The recent government proposal to grant licences to property agents is expected to make the realty market more organised and prevent cases of cheating
NDelhi tops list of property fraud cases
In Delhi, as per the National Crime Records Bureau (NCRB) around 181 cases of loss of property were reported during the year 2013. The worth of properties is estimated to be around ₹ 3,000 crore. At least eight cases were for loss of property under the category criminal breach ishat Khan, an investor, booked two apartments in Gurgaon through a broker in 2012, who promised him a 2% commission which helped Khan maintain cash flows in the short term. However, instead of getting a proper letter committing the 2% commission, Khan got a bogus note, which should have warned him of the broker’s premeditated intention to cheat. The case is currently with the Economic Offences Wing in Gurgaon.
And that’s not all. There have also been cases of brokers issuing postdated cheques to buyers and then filing a report of cheque book theft with the police, absolving themselves of all responsibility. of trust. These were for properties worth ₹ 1 crore to ₹ 10 crore. Under the category of cheating, there were 102 cases for properties worth ₹ 1 to 10 crore, 43 cases of cheating for properties worth ₹ 10 to ₹ 25 crore and 22 cases of cheating for properties worth ₹ 25 to ₹ 50 crore. There were three cases of cheating for properties worth ₹ 50 to ₹ 100 crore and three cases for properties above ₹ 100 crore. Maharashtra came a close second with 176 cases (worth ₹ 1,600 crore) and Punjab with 82 ( worth ₹ 500 crore) cases of property fraud.
Will including brokers in RERA help?
To protect homebuyers from unscrupulous property agents, the ministry of housing is planning to make it compulsory for real estate brokers to get registered with the proposed real estate regulatory authority (RERA). It also plans to expand the purview of RERA to cover commercial as well as residential real estate.
Real estate agents will now have to get registered with the proposed real estate regulatory authority and get a licence