Buying or selling a property in India can be crucial especially in this age of widespread frauds, impersonation, and creation of fake documents to sell those properties.  This article will highlight a recent scam worth Rs. 600 crores where buyers were fooled using fake property papers and also the crucial dos & don’ts of choosing a real estate broker in India.

GOA Property Fraud: Victims Mostly From the NCR & Haryana 

Recently, one such scam came to light where an ex-assembly election contestant named Rohan Harmalkar was arrested from Panaji Goa. In relation to a property fraud worth Rs. 600 crores. His clients were mostly from Delhi NCR and Haryana. 

He identified properties that were unattended to by their owners and forged their papers and tempered with their revenue records. His modus operandi doesn’t come within the scope of this article. However, you should be aware that choosing your real estate broker can make a big difference.   

Complaints & Issues People Encounter While Working With Brokers 

As per a forum discussion, most buyers expected smooth transactions, fair pricing and legal security from their brokers. While many others complained about delays, financial losses and frauds. 

This problem multiplies when you are a first-time buyer or seller and navigating the real estate market. This guide covers the essential dos and don’ts when selecting a real estate broker in India, so you can make an informed choice.

Why Choosing the Right Broker Matters 

As a real estate broker acts as an intermediary between buyers and sellers, they are expected to handle negotiations, paperwork and legal formalities. India is a complex market, when it comes to property transactions, so a skilled broker can help you with: 

1. Getting the best market price 
2. Ensuring legal due diligence including title checks and approvals 
3. Saving your time by filtering genuine listings 
4. Providing insights into neighborhood trends and future appreciation prospects 

Don’t assume that all brokers with a luxury office and a premium car are trustworthy.  They might push overpriced properties and hide legal defects. Some may also disappear after taking an advance payment. To avoid such risks, follow these dos and don’ts:

The Dos: 

Here are a few crucial dos and don’ts while choosing the right broker to work with. 

1. Do Research their Local Market Reputation

• Conduct preliminary research on the web: To begin with, you can check their online reviews on Google, Housing.com, Magicbricks and 99acres, the prominent real estate listing sites.  
• You can ask your friends and family for reference 
• Avoid brokers with multiple complaints about hidden charges or fraud

2. Do Assess their Communication

• Carefully monitor their communication and evaluate their transparency. A good broker should clearly explain property details, pricing, and legal aspects.  
• They should be responsive. Delayed replies could mean poor service and communication errors.  
• Demand full disclosure of fees (including commission, GST, etc.) upfront.   

3. Do Verify Legality of Property

Before anything else, verify the legality of the property, because this could jeopardize your entire investment. A reliable broker will help verify:   

• Title deed & ownership
• Encumbrance certificate (no pending loans or taxes, disputes, litigation)
• Approved plans (if the property is under construction)
• If they avoid documentation checks, simply walk away

4. Do Negotiate Brokerage Fees  

Brokerage is an important fee, and surprises can lead to feeling cheated and ending up paying a higher price. Here are some tips.  

• Standard brokerage in India is 1-2% of the deal value. Don’t agree to pay a higher amount.  
• Some may charge a fixed fee. It’s better to discuss and agree in writing. 
• Avoid brokers who demand full payment before the deal closes.   

The Don’ts: Common Mistakes to Avoid

1. Don’t Go for Unregistered or Part-Time Brokers  

• Unregistered brokers may lack legal accountability. There are many such in the marketplace, so don’t work with them even if they make tall claims.   
• Part-timers might not give your deal enough attention.   

2. Don’t Fall for “Too Good to Be True” Deals

• If a property is priced far below the market rate, it could be a scam.
• Some brokers use fake listings to lure buyers. Always verify that in person.

3. Don’t Skip a Physical Property Visit

• A physical visit is a must. There are many things which you can’t assess through photos or videos.
• Assess Actual condition of the property (including water supply, construction quality, etc.)
• Evaluate safety of the neighborhood & amenities available nearby.
• Know the exact location. Some brokers misrepresent distances, e.g. they tell you that the property is within 30 minutes from the airport, while it can be as far as 30 km, which can take around one to two hours during peak time.

4. Don’t Ignore Legal Verification  

Even if the broker seems trustworthy, hire a lawyer for the following: 

• Title search (ensure no ownership disputes)   
• Stamp duty & registration compliance  
• A broker who discourages legal checks is a red flag

5. Don’t Sign Anything Without Its Understanding

• Read every clause in the agreement, sale deed, and brokerage contract.
• Clarify terms like lock-in period, refund policies, and exit clauses.   

Questions to Ask Your Broker Before Hiring   

1. Are you RERA-registered? RERA certification is mandatory in most states.   
2. Can you share recent deals you’ve closed in this area?   
3. What’s included in your brokerage fee? 
4. How do you handle legal verification?   
5. What if I’m unhappy with the property after purchase?  

Final Thoughts   

The Indian real-estate market is rife with challenges and scams. And even if you happen to deal with an otherwise established broker, they can easily overcharge you without your knowledge. 

It requires due diligence, patience, and clear communication. A trustworthy broker will make your property journey frictionless, while a bad one can lead to legal and financial headaches.   

By following these dos and don’ts, first-time buyers and sellers can minimize risks and secure the best deal. Always prioritize transparency and legality, and the second most important thing is reputation as your dream home (or sales profits) depends on it!