If you are afraid of home pre-construction scams, read this article! Because the pre-construction of a house has advantages, disadvantages and risks, one of which is scams. Considering that you may regret the pre-construction of a house due to the risk of scams, the GTA Home Networks has provided valuable experience and methods in this article so that you can make a less risky purchase. So, if you sign a pre-construction agreement for a house soon, take advantage of this article.
The Most Common Scams In Pre-Construction of A House
Why do we always insist that you check everything before buying a house? Because in case of any problem, you may try for months or years to get your main right, but to no avail. To avoid falling into the trap of scammers, you should increase your awareness or negotiate before buying a house. Unfortunately, the most common scam methods of these people are:
Incomplete delivery of the building
Sometimes a person pre-sells a house and leaves the work half-finished after receiving the money or needs to deliver the apartment to the buyer.
Selling a house to several people
We all have heard the sad story of selling a house to several people, and unfortunately, this happens more often in the pre-sale of the house because the buyer has to trust the commitments made by the seller. To avoid problems, we emphasize that before signing the contract and paying the fee, check all aspects and ensure that each unit will have only one owner.
How To Decrease Pre-Construction Home Scams In GTA?
Undoubtedly, these days, many people fall into the trap of scams and suffer irreparable losses when buying pre-purchased houses. Most of these problems are due to insufficient information about the rules.
As we said, unfortunately, scams can be done in several ways. You must have seen or heard that someone sells a property or apartment to several people or abandons it completely after selling the property. For this bitter event not to happen, you must observe the following factors:
Be fully aware of the rules
Unfortunately, not knowing the rules always causes harm. Many people think that overnight they can pocket a huge profit by buying a property with less than the normal amount. But the truth is that most of the time, they may fail to reach their goal and fall into the trap of scams. Therefore, it is necessary to pre-construction a house, which is very risky, to know the rules and includes them in the parties’ commitment.
Ask real estate agents for help
Most people prefer to buy and sell property independently due to the cost of real estate consulting. But getting a little advice from a real estate agent will cost you much less than losing a multi-billion dollar property because of your greed. You can ask GTA Home Network consulting services for help; we are always ready to answer.
Register the pre-construction agreement for the house
One of the disadvantages of the pre-construction home is that it needs to be legally registered, and only a contract is written between the parties. Therefore, the seller can sell the property to several other people. To avoid such a risk, you must see the official document of the property when setting up the contract and make sure it is correct.
Points You Have To Know Before Buying a Pre-Construction Home
If your credibility and money are important, please be careful not to regret them. Carry out all the steps of the pre-construction house without rushing and obsessively.
To set up a pre-construction agreement for the house, the details of the parties, including the name and date of birth, birth certificate number, address, contact number, etc., must be mentioned entirely in the commitment paper.
Many scams happen when the seller’s documents, such as the property document, construction contract or partnership and how to divide the property between the owners, must be carefully studied and checked. As a result, they need help in the next steps.
The second point:
Specifications such as the property’s area, floor, and unit must be recorded in the house pre-construction agreement. Mentioning these specifications is necessary to specify the owner’s rights; the seller cannot sell the unit to another person.
The third point:
Determining the full value of the house and how to pay it should also be announced in detail in the pre-construction contract. Usually, the best practice is for the buyer to pay a portion of the total cost and then make other installments based on the progress of the work.
Remember that one of the important conditions of the house pre-construction contract is to determine the delivery date, which must be in place for the implementation of the contract so that in case of delay, the buyer can compensate for all his losses. Unfortunately, sellers usually do not adhere to their commitment when delivering the house and may even deliver with a delay of several months, which causes loss to the buyer who plans to live in his property, and each day of delay causes him hardship and financial loss. In case of such a problem, the buyer can claim damages.
In order not to fall into the trap of home pre-construction scams, pay attention to these essential points:
- Make sure of the validity and legality of the house pre-construction project.
- Set up a formal contract to pre-construction the property.
- In the contract, the property’s license plate and registration details, address, number of rooms, floor number, unit, parking lot, type of use and the total area of the property and the facilities used in it should be accurately stated.
- The contract amount, number of installments and delivery time should be mentioned in the contract.
As beautiful as the dream of buying a home is, the fear of foreclosure scams can haunt us. Unfortunately, fraud is more likely to occur in the pre-construction of a house. So that you avoid falling into the trap of home pre-construction scams, we have mentioned the most common scam methods of these people so that you can gather your senses.
In addition to this, we have mentioned the necessary and important points that must be followed in the implementation of the pre-construction agreement. If you still have questions, you can contact the GTA Home Network consultants; we are by your side so that you have the best and sweetest home pre-construction experience.