Property fraud is not rare in Bangalore , it is a well-documented, recurring problem that has cost thousands of buyers their savings. Understanding the most common fraud types and how they are executed can help you avoid becoming the next victim.
Type 1: Double-Sale Fraud
The seller signs separate Sale Agreements with two different buyers, collects advances from both, and then registers the property with one of them (or neither). The victim who does not get the registration has to fight a legal battle for refund or specific performance. This is especially common with plots and resale apartments.
How to protect yourself: Register your Sale Agreement immediately. Always check the Encumbrance Certificate just before registration. Never pay large advances without a registered agreement.
Type 2: Forged Title Deeds
Fraudsters create fabricated title documents for properties they do not own , sometimes targeting properties of deceased owners, NRIs, or properties that have been in the same family for decades (with no recent registrations to verify against). Buyers discover the fraud only after registration when the real owner or their heirs appear.
How to protect yourself: Always verify the Mother Deed and the complete chain of title with the Sub-Registrar records, not just the documents the seller provides.
Type 3: Selling Encumbered Property
The property has an active mortgage (home loan) that the seller has not disclosed. After the sale, the bank that holds the mortgage comes forward to enforce its charge, and the buyer , who now "owns" the property , is stuck with a debt they did not take.
How to protect yourself: An EC showing a mortgage entry without a corresponding release deed is a red flag. Never proceed without a lawyer's confirmation that all loans have been discharged.
Type 4: Agricultural Land Sold as Residential Plots
This is one of the most prevalent frauds in Bangalore's periphery. Agricultural land without DC Conversion is carved into small plots, given survey number hissas, and sold with a story that "conversion is pending." Buyers pay residential prices for land they legally cannot build on.
How to protect yourself: Always verify the RTC Pahani. If Column 7 shows the land as agricultural, do not pay unless the DC Conversion Order is in hand.
Type 5: Fraudulent Power of Attorney
A person presents a Power of Attorney (PoA) claiming to act on behalf of the owner. The PoA is either forged, revoked, or a general PoA that does not specifically authorise the sale of property. After the transaction, the real owner surfaces and challenges the sale.
How to protect yourself: Any property sold through a PoA requires extra scrutiny. Verify that the PoA is registered, currently valid, and specifically authorises the sale. If possible, speak directly with the principal (the PoA grantor).
Type 6: Gram Panchayat Khata B Sold as Fully Legal
Properties with Khata B are frequently sold as "fully legal" or "Khata A" by brokers who either do not know the difference or are deliberately misleading. The buyer discovers post-purchase that they cannot get a home loan, building plan approval, or Khata A conversion.
Your Best Protection
The single most effective protection against property fraud is engaging an independent property lawyer to conduct due diligence before paying any advance. Do not rely on the seller's lawyer , they represent the seller's interest. Our team at Clawrity provides independent property due diligence specifically designed to catch the frauds listed above. Review our complete property documents verification checklist before your next property transaction.