Real estate is one of the most valuable assets Indians own. Unfortunately, it’s also one of the riskiest to transact — with property fraud cases rising across the country. Disputes are also common in property sales.

From fake buyers to forged documents, property fraud can cost sellers lakhs or even crores. That’s why it’s essential to understand the risks and take steps to safeguard yourself.

This guide explains the common property frauds in India, how to prevent them, and why using a structured platform like Owne reduces risk for sellers.

Common Property Frauds Sellers Face

1. Fake Buyers with Forged Documents
   Some fraudsters pose as genuine buyers, showing fake IDs or loan approvals. These scams may lead to delayed payments, illegal occupation, or disputes over property ownership.

2. Advance Payment Scams
   Buyers pay a small token amount and disappear, later creating disputes claiming ownership.

3. Underpayment at Registration
   Buyers try to register the property at undervalued prices, creating tax/legal issues for sellers.

4. Benami Transactions
   Buyers use illegal channels or fake identities. If detected, sellers may face scrutiny.

5. Delayed or Broken Payments
   Buyers agree to partial payments but stop midway, trapping the seller legally.

6. Power of Attorney Misuse
   Fraudsters misuse PoA to transfer or sell property without clearing payments.

Real-Life Case Example

A seller in Delhi agreed to a quick deal with a buyer who showed bank loan “sanction letters.”
After paying a small token amount, the buyer delayed final payment for months and even tried to claim possession through forged documents.
The seller fought a 3-year legal battle.

Lesson: Always verify buyers and ensure registered agreements.

How to Protect Yourself

1. Verify Buyer Credentials
   Check PAN, Aadhaar, address proof, and confirm loan approvals directly with banks.

2. Avoid Cash Deals
   Accept payments only through official banking channels. Cash above ₹20,000 is illegal.

3. Draft a Strong Agreement to Sell
   Include price, payment schedule, and default clauses. Register the agreement for legal enforceability.

4. Collect Token Advance Carefully
   Take at least 10% through bank transfer. Escrow is safer.

5. Check Buyer’s Legal Capacity
   Ensure buyer is not minor, benami, or legally restricted.

6. Clear All Dues Before Transfer
   Complete society dues, property tax, and utility bills to avoid disputes.

7. Use Escrow or Platforms
   Escrow protects payment flows. Owne provides escrow-backed, registered tri-party agreements.

Documents Sellers Must Prepare

• Title Deed
• Encumbrance Certificate (EC)
• Property Tax Receipts
• Occupancy Certificate or Completion Certificate
• Society NOC (if required)

Having all documents ready builds buyer trust and reduces fraud risk.

Example of a Safe Transaction

Seller: 2BHK in Bangalore worth ₹80 lakh
Traditional Route: Buyer delayed payments and demanded last-minute discounts.
Owne Route: Buyer and investor matched via registered tri-party agreement. Payments routed through escrow. Seller received payout within 90 days.

Result: Zero fraud risk and full-value sale.

How Owne Protects Sellers

• Pre-verified buyers
• Investor backing to ensure payouts
• Registered tri-party agreements
• Escrow-managed transactions
• Legal and documentation support

FAQs

1. Can property be sold without registration?
No. Only a registered Sale Deed transfers legal ownership.

2. Can buyers delay payment after registration?
No. Full payment is required before registration.

3. Should I use brokers for faster deals?
Brokers may bring leads but do not prevent fraud. Structured platforms are safer.

4. Can fraud happen even with a token advance?
Yes. If not documented, buyers may create disputes. Always register agreements.

5. How does Owne ensure safety?
Every deal is escrow-backed, registered, and supported by investor liquidity.

6. What is the legal process for property sale in India?
It includes drafting agreements, due diligence, registration, and secure payments.

Conclusion

Selling property in India involves real risk if safeguards aren’t in place. Fraudsters often exploit sellers’ urgency or lack of documentation.

To avoid fraud:
• Verify buyers
• Use registered agreements
• Insist on escrow
• Keep documents ready

Owne provides all of these in one structured platform — helping sellers secure fair value, faster payouts, and complete protection.

If you're planning to sell, Owne helps you do it safely and confidently.