In Pakistan, there prevails a popular notion among the masses, "An investment in Real Estate pays the best interest." Yet, this conception is valid to a great extent. A considerable increase is being experienced in the prime housing societies across the country, proving the Real Estate business a profitable business. However, just because the number of urban housing societies is increasing doesn't mean this business has no shortcomings. According to a report published in 2019, Pakistan's housing shortage is expected to reach up to 17.4 million by 2025. Moreover, the increasing hustle and bustle of the cities have been prompting folks to settle in the advanced housing societies being constructed on the outskirts of the main city. A major portion of Pakistan doesn't afford to buy the plot directly with a lump-sum payment, so they opt for plot files. Plot files give customers to leverage in payment plans, but in this process of purchasing plot files, many people fell prey to dishonest housing developers. Scammers are all-around; people should be intelligent enough to predict the bogus motives of fake developers.
In the blog, Apex Group tries to let the cat out of the bag by shedding light on how Real Estate developers plunder the hard-earned money of innocent people.
More Chances of Plot Files Fraud with the Growing Demand for Housing Units
Far away from the turmoil of main cities, new and advanced towns offer rosy urban lifestyles on the outskirts. Numerous catalyzing factors make one's mind leave the main city and shift to the city's peripheries for residential purposes. A rise in population, air and noise pollution fall under the category of such factors. So, housing demand is high, and scammers are active in the market to plunder the money of innocent folks. People are not aware of the procedures very well, and bogus developers exploit the people in the name of fake plot files that don't exist on the planet.
Public Selling of Plot Files without Obtaining Land & Approval
Plot file is an intangible piece of land and has no physical existence. It may or may not be present on the surface of the Earth and hasn't passed through the balloting procedures. Fake property developers usually don't have any land or legal approval, but they sell the plots for their interests. They cheat the investors by providing fallacious information, and people fall into the trap of buying a plot file that has no existence at all.
Plot Files' Scam Due To Its Zero Legal Binding
As plot files have no legal bindings, people started saying 'ok' to developers' words and become prey to fraud. The developers leave no stone unturned to develop a hope in the hearts of investors that they would be able to the plot's possession very soon in the future, but who knows what's going on in the minds of developers. If we talk about the developers, there are zero entry barriers to jump into the market. The issue is on the part of the civic body. The government of Pakistan should think out of the box to regulate the Real Estate industry. It is one of the foremost issues, because of which many of the housing schemes don't conclude successfully.
File Selling for Raising Public Money and Acquiring Land
Bogus developers usually possess evil minds. They hadn't had the government's permission and required land to develop a society for their customers. What an investor does is; spends a huge amount of capital on marketing purposes to attract customers. It is the only investment that he makes from his own pockets. People invest all their savings to buy a plot file, but it goes all in vain. A developer intends to grab money from the customers, later using their plot files' money to acquire land for its housing society so that he could be able to earn more money from them in the style of plot registration, installments, possession charges, etc.
Plot Files Scam Owing to Non-acquisition of Promised Land
The farmers understand well how the developers acquire the hard-earned money of people and commit fraud with them. The contemporary era is a time of social and electronic media; farmers are more intelligent than property developers. They come across the news of housing societies that are being advertised on various media platforms. When an investor fails to procure land from farmers and loses hope to turn his promise into a reality, he makes a scam. This is how the fake developers raise public money and scam the citizens in the name of plot files.
Overselling Plot Files to Devalue the Market
Overselling plot files is another dirty tactic on the part of the developer. The only purpose behind this barbaric action has been to ultimately plunder the maximum wealth and fill the deep pockets.
To devalue the market, the clever developers commence selling more plot files than the existing possessions. They don't appear on the front-end in this scenario but devise this dirty tactic from the backside. When someone questions them for their behavior, they reply in fake distress to pass the time. Sometimes, the developers fail to manage the land and market competition as well. Owing to this, they play such dirty moves to protect their money without caring about customers' deposits.
So, scammers are everywhere in Pakistan. Talking about the scammers of Lahore, there are several fraudulent Real Estate developers and realtors present on the main Raiwand road and Canal road. They possess wonderful offices but dirty minds. Many housing societies of Lahore have paused construction works due to overselling; the local folks knew which societies these are. Many such cases have been registered in the National Accountability Bureau (NAB) by the investors who are busy dealing with the people subject to the accusation. In many cases, defendants have gone for a plea bargain, an effective negotiating tool, following the court's decision. The locals should be very careful while purchasing or selling plot files. Finally, the loophole is on the part of the government of Pakistan; it should crack down on dishonest property developers, recover the plundered money from them, and return it to the right people.
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