Common Malpractices in Real Estate
-
Loading... - Aadavan Galgale
- 28 Jun 2022
- 188 Views
- 0 Like
- 0 Comment
Real estate is a very remunerative sector in Pakistan. The real estate sector is vast and has extensive potential to boost any country’s economy. In past years, the prices of real estate in Pakistan have risen which makes it one of the safest sectors to invest in.
The real estate sector is now regarded as one of Pakistan’s most lucrative business and investment opportunities, owing to significant advantages such as asset ownership, high returns, and security.
However, there are several challenges in Pakistan that property owners face. Unlike any other industry, the real estate sector of Pakistan has the issue of malpractices. It occurs as a result of a lack of proper attention to this sector. There are no regulatory authorities in Pakistan to bring transparency and accountability to this sector.
In this blog, Graana.com, Pakistan Smartest Property Portal, will highlight common malpractices to understand the real estate market of Pakistan.
List of common Malpractices in Pakistan
1. Honey potting
2. In-direct Selling
3. Lack of verification
4. House Flipping
Honey potting
Honey potting is the concept of luring people through images and details of properties that have been sold or are not available. When a buyer contacts an agent for this property, they respond that it is sold out, but now the agent has a lead.
They’ll bombard this lead with multiple other options from their inventory hoping to strike a deal.
In-direct Selling
Indirect selling is the process of selling plot files in the name of getting approved NOCs in a while. This is one of the largest real estate frauds in Pakistan, as this is a way of looting people when they are shown the dream of getting huge profits at a time. 
In this type of fraud, people are duped into believing that the developer is currently undertaking preliminary construction work and the plots are ready for sale. While in reality, no such work is done and it is a mere tactic of selling plot files. Read More…
