Question: How to protect myself from sham housing schemes?
The following steps are vital before investing in any real estate especially in new housing schemes:
a) Check with Development authorities for valid approval to set up the housing scheme. Lahore Development Authority (LDA) for Lahore, Capital Development Authority (CDA) for Islamabad and Gawadar Development Authority for Gawadar.
b) Invest some time in market research. Try ascertaining a mean price of the land that you intend to buy in the market. This will ensure that you do not over pay for the land.
c) Visit the specific property you intend to buy, procure any legal documents asserting its legal existence and ownership.
d) When buying the land through the installment schemes, make sure to understand the terms and conditions of the contract of purchase. Discuss the provisions of the agreement with the lawyer.
e) Ensure that the time of possession of the land is and property transfer is clearly specified in the agreement. Stalled and uncertain possession dates and transfer time is a warning sign!
f) Make sure to thoroughly understand the termination and revocation clause of the agreement, since this is usually the clause that leads to housing schemes easily defrauding you and extorting your money.