Real Estate Scams: Be Wary of Buyback Offers and EOIs
New scams like buyback offers and EOIs are targeting homebuyers and real estate investors, particularly those from middle-income families. These schemes often involve projects that are not yet started or exist only on paper.
Real Estate ScamsBuyback OffersEoisFraudTgreraReal EstateOct 14, 2024
In some cases, particularly in areas like Kokapet, the money is being collected by channel partners. Verification has revealed that dozens of such advertisements related to buyback offers and EOIs are circulating across various social media platforms. The modus operandi in many of these fraud cases is strikingly similar. Scammers not only share videos of the projects but also use 3D models of unrelated projects to deceive potential investors.
B. Manohar, a tech professional, shared his experience “The 3D model I was shown was of a high-rise building project, and I paid Rs 1.16 lakh. The person who cheated me promised a flat in a venture located in Kokapet, where they said a 30-storey building was supposed to be constructed. They created such urgency that I felt if I didn’t act immediately, I would regret it for the rest of my life.”
In another instance, a woman was duped by a social media post that offered a lucrative buyback deal “Invest Rs 50 lakh and get Rs 90 lakh.” Many victims prefer to remain anonymous and do not approach the police due to fear of damaging their professional reputations. One victim, who manages a team of 150 people at a corporate giant, stated, “If I lodge a complaint with the police, it will damage my professional image.”
Some victims have sought help from the Telangana Real Estate Regulatory Authority (TGRERA), but they were turned away because the projects were not registered with RERA. Most of the fraudulent projects are named after the locations they are supposed to be in, such as Nanakramguda commercial space, Kokapet residential apartment, and Mokila Villas.
The Telangana Real Estate Regulatory Authority (TGRERA) is a regulatory body established to protect the interests of homebuyers and real estate investors. It enforces the Real Estate (Regulation and Development) Act, 2016, which mandates the registration of real estate projects to ensure transparency and accountability in the real estate sector.
It is crucial for potential investors and homebuyers to conduct thorough due diligence before investing in any real estate project. Verifying the registration status of the project with RERA, checking the developer’s reputation, and seeking legal advice can help mitigate the risk of falling victim to these scams.
Frequently Asked Questions
What are buyback offers in real estate?
Buyback offers in real estate are schemes where developers promise to buy back the property from the buyer at a higher price after a specified period. These offers are often used as a marketing tactic to attract investors.
What is an EOI in real estate?
An EOI, or Expression of Interest, is a document used to invite potential investors to express their interest in a real estate project. This is often a preliminary step before the project is fully detailed and launched.
Why are these schemes considered illegal?
These schemes are considered illegal because they often involve projects that have not yet commenced or are purely fictitious. Collecting money through such schemes without proper registration and transparency is against the law.
What is TGRERA?
TGRERA stands for Telangana Real Estate Regulatory Authority. It is a regulatory body that enforces the Real Estate (Regulation and Development) Act, 2016, to protect the interests of homebuyers and real estate investors.
How can I protect myself from real estate scams?
To protect yourself from real estate scams, conduct thorough due diligence, verify the project’s registration status with RERA, check the developer’s reputation, and seek legal advice before making any investments.
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