Real estate scams is a serious issue in Pakistan. Buyers often face challenges like fake documentation, illegal transfers, and fraudulent societies. 2025 is no different, and it is crucial for property buyers to stay alert and educated about potential scams.

This guide explains top real estate scams in Pakistan and offers expert tips on how to avoid them when buying property.

🟢 1. Duplicate or Fake Property Files

One of the most common scams is selling duplicate or fake property files. The scammer sells a property file that has already been sold to another person or is not even linked to any real plot.

✔ How It Works

• The scammer creates fake documents, including fake allotment letters or fraudulent sale deeds.
• They sell these fake files to unsuspecting buyers.
• The buyer is handed over the file, but when they attempt to transfer ownership or verify the plot, they find out that the file is already open or non-existent.

✔ How to Avoid It

• Always verify property files through the property society or development authority (LDA, CDA, etc.).
• Ask for Fard (ownership record) from the revenue department.
• Check whether the file is open or closed at the society office.
• Use a trusted legal expert to cross-check documents.

🔵 2. Non-Existent or Fake Housing Societies

Fake housing societies are often set up with attractive offers and promises of rapid development. These societies exist only on paper and never get developed.

✔ How It Works

• The scammer sells plots in non-existent societies or those not approved by the LDA, CDA, or other local authorities.
• Buyers are drawn in by lower-than-market prices and payment schemes.
• The scammer pockets the money and vanishes, leaving buyers with no legal ownership and no development in sight.

✔ How to Avoid It

• Always verify the NOC (No Objection Certificate) of the society from the development authority.
• Make sure the society is LDA or CDA-approved and has the necessary legal documentation.
• Avoid societies that are not listed with the provincial revenue department or FBR.

🟡 3. Fake Property Agents & Unauthorized Sellers

Fraudulent agents or unauthorized sellers trick buyers into making deals on properties they don’t own or have no right to sell.

✔ How It Works

• Fake agents pretend to be legitimate real estate professionals or act as middlemen.
• They may take you to a property that does not belong to them or has legal disputes.
• They may collect advance payments but never follow through with the sale.

✔ How to Avoid It

• Always verify the agent’s credentials.
• Ensure the agent is registered with a real estate association (like REAP or local authorities).
• Meet with the property owner or check their proof of ownership.
• Request official documentation (e.g., sale deed, registry, mutation certificate) from the seller before making any payments.

🟠 4. Overpriced or Inflated Property Prices

Overpricing is another common scam in Pakistan. Some sellers inflate the market value of a property to make an extra profit.

✔ How It Works

• A seller or agent will sell a plot at a much higher price than its actual market value.
• They may use fake valuations or exploit the buyer’s lack of knowledge about property prices.

✔ How to Avoid It

• Always compare prices of similar properties in the same area.
• Use tools like FBR valuation, DC rates, and local market research to check the property’s real value.
• Seek advice from trusted experts and real estate professionals to ensure you’re not overpaying.

🟣 5. Property Involved in Court Disputes or Legal Cases

Many buyers unknowingly purchase properties involved in legal disputes. These properties are either in litigation or have ownership conflicts, making them difficult to resell or possess.

✔ How It Works

• A property may be under litigation due to a land dispute or pending inheritance issues.
• The buyer may face delays or lose ownership when legal issues arise.

✔ How to Avoid It

• Check the legal status of the property from the court or revenue department.
• Ask the seller for a No Litigation Certificate or check online records for any pending court cases.
• Verify that the property has clear ownership with no encumbrances.
• Always consult with legal advisors before making a purchase.

🟤 6. Fraudulent Power of Attorney (PoA)

A fraudulent PoA scam occurs when a seller provides a fake Power of Attorney to a buyer or agent.

✔ How It Works

• The scammer presents a fake PoA, allowing them to transfer ownership of the property without the real owner’s consent.
• The buyer makes the payment, only to find out that the PoA was not genuine and that the seller was unauthorized to sell the property.

✔ How to Avoid It

• Verify the PoA by checking with the relevant authority where it was registered.
• Always meet with the actual property owner before making any deals.
• Avoid buying from agents who are not registered or certified by relevant authorities.

🟢 7. Fake or Altered Documents

One of the simplest scams involves fake or altered property documents.

✔ How It Works

• The scammer alters the sale deed or forges signatures to sell a property.
• Fake stamp papers, forged signatures, and tampered ownership records are commonly used.

✔ How to Avoid It

• Cross-check all documents with the registrar office.
• Ensure the originality of the stamp paper and signatures by verifying them with the official sources.
• Always get documents attested by the relevant authority before finalizing the deal.

🛑 How to Protect Yourself from Real Estate Scams in Pakistan

Here are some quick tips to avoid scams:

1. Verify the property’s NOC from the relevant development authority.
2. Always meet with the owner and verify their ownership through documents like Fard and mutation records.
3. Cross-check prices with market rates and FBR valuation.
4. Never rush into a deal without fully reviewing the property and its documentation.
5. Work with licensed and verified agents or real estate firms.
6. Consult a lawyer before signing any documents or agreements.
7. Use official channels for property transfer (e.g., bank pay orders, registered transfer deeds).

⭐ Conclusion

Real estate scams are unfortunately common in Pakistan, but you can avoid them with careful research, proper document verification, and due diligence. Always work with trusted agents, verify property ownership and history, and never rush into a deal without all the facts.

For expert assistance, Property Visors is here to help you verify properties and ensure secure transactions.

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