The decision to buy your assets is an extremely relevant issue in your life, which is why we want to share valuable information with you so that you can play it safe.

Before making the decision to acquire a real estate, the first step you must take is to analyze under what means you will do it, for example, if it is through a mortgage loan. And, therefore, this involves the intervention of a finance company or bank.

In this article we will tell you how you can be 100% sure that the company you chose to acquire the credit you need for your property is governed by the legal framework and how you can avoid falling into so-called real estate fraud.

What is a real estate fraud?

We can define a real estate fraud as an economic deception with the intention of obtaining monetary advantage, while another person is harmed.

The figure is not low, in fact, the rate of fraud in the real estate sector is among the top 10 causes of complaints to the Federal Attorney for the Consumer (PROFECO).

Most common real estate fraud

Currently there are many ways in which people can commit real estate fraud, but below we list the most common, so that you can avoid falling into any of them when buying your home in Lahore smart city .

  1. Shell companies

Among the most common scams we can mention the so-called ghost companies, these are those that carry out simulated operations, but do not have real assets or even facilities.

These types of companies have the sole purpose of defrauding people and evading the margin of the law; the real estate field is not exempt from bogus lenders.

Many of these companies and bogus lenders operate over the internet, creating ghost websites with fake addresses.

However, in the case of lenders, there are also cases of people posing as real estate agents and operating in the same way, scamming to obtain a percentage of money and then disappearing.

How to avoid fraud?

To avoid falling into a shell company fraud, the ideal is to investigate 100% the company or the lender through which you will apply for a mortgage loan or buy a property.

Make sure that the company in question is certified and regulated by PROFECO, by the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) or another official regulatory body.

In order to be sure that the company has these certifications and regulations, you can consult the official sites of said instances, which have sections in which they inform by whom they are regulated.

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You also have the opportunity to consult sites such as CONDUSEF, where there are lists of different financial institutions and even their ratings.

Make sure, in the case of online publications, that the website really exists and has the necessary certificates.

Investigate that the company has established offices and a telephone where you can communicate constantly without any inconvenience.

  1. Dispossession of property

One of the modalities of real estate fraud that is gaining strength in Mexico is the dispossession of property.

Only in the capital there are more than 300 investigation files for the crime of property dispossession.

In most cases, a group of people, outside the property, present themselves with threats and violence, arguing that the house is on trial.

After intimidation, burglary, and even cases in which the group of people take the property of the owners to the streets, the scammers pressure the legitimate owners of the property to hand over the deeds and in desperation, the headquarters majority before it.

According to investigations of this crime, there are three patterns that scammers use to commit the act:

  1. Houses located in high value areas.
  2. Owners who do not have their papers up to date.

Another form of property dispossession is when false owners take over an abandoned property, begin to pay bills for basic services such as electricity, property or water, which are found on the property and with this they accredit and falsify documents to impersonate the owners of the property.

After doing this, they use the property either for sale or rent to obtain money from a fraudulent operation.

However, the impact falls on those who buy the property, since, when it is discovered that the owner who sold it was not legitimate, they lose the property they “bought”.

Many times, these people operate through false documentation or corruption with lawyers and subjects disguised as police officers to make the entire process pass as a legal action.

How to avoid fraud?

Due to how common this crime has been done in recent years, one of the proposals is to create an institution that focuses on preventing it, through the regulation of housing legal processes.

That is, to evaluate if they have all the papers in order, if they are in court, if they do not present debts and that it is not only done through notaries.

Another recommendation is that, in this type of case, the deeds are not delivered under any circumstances or in the absence of a corresponding notary.

It is important not to give in to the apparent pressure and to communicate with the appropriate authorities. In cases like this, you can request the intervention of the police, since it involves threats and breaking and entering.

While buying or selling properties in park view city Lahore , make sure that the notary performs all the operations under the strict framework of the law.

A notary must be governed by the Law of Notaries, in accordance with each federal entity and must have the notarial patent, that is, the authorization granted by the executive power of each place for a Lawyer to act as a notary public.

Another recommendation is to carry out this type of action through serious financial institutions and verify that, at all times, your process is clear and safe.

  1. Owners who sell the properties 2 times

According to the Penal Code, the double sale of the same property, be it, house, land, or commercial premises is considered a fraud; many times it happens when the first sale is made in private and is not documented before the Public Property Registry.

In general, scammers ignore this action so that the transfer of the property is not documented and make a “token” delivery so that they can sell the same property a second time.

In accordance with article 1473 of the Civil Code, it is established that:

” If the same property is sold to different buyers, the legitimate owner will be the one who first registered the property with the Public Property Registry.

When there is no registration, the property will belong to whoever in good faith is first in possession; and, lacking this, whoever presents the title of the oldest date, provided there is good faith”.

Another modus operandi is when scammers pose as owners of properties that no longer belong to them (since they have already sold them) to celebrate a second sale. That is, they pretend to own something that is no longer theirs.

How to avoid fraud?

The first way to avoid this kind of crime is to purchase a property through a serious financial institution, in case you do it through a mortgage loan.

In the event that you have bought the property and it has previously been sold to another person, you must initiate a legal process so that the pertinent investigations can be initiated and that they accredit you as the legitimate owner, in accordance with the provisions of the Civil Code.

The criminal offense must also be evaluated so that the scammer is duly punished and you can recover your money plus what the law dictates.

  1. Non-existent or unwritten properties

Another common case of real estate fraud falls on false properties, that is, when they sell you a property that does not really exist.

Most users also fall for this type of fraud through the Internet, when they fall into property advertisements that are offered on unofficial sites and in reality the property was never for sale and you already paid an advance for it.

There are also cases in which people have reported that they carry out the entire process, they give them the keys, but at the decisive moment they never give them the deeds.

How to avoid fraud?

The best way to avoid this fraud is:

One: appearing at the property of your interest in the company of the real estate advisor with whom you had communication; and, two, requesting all the necessary documentation such as deeds, property, appraisal request, among other documents that prove that the house is for sale and under the legal framework.

Make sure with a notary that the house has the corresponding deeds and is not intestate, in this way you can obtain them at the same time as your property.

  1. Advance payments

Typically, in these types of cases, scammers ask for advance payments so that you can “set aside” the property. A serious, professional and certified company will never ask you for advance payments without a contract.

There are real estate presales, but they work with a contract in between where the amount of money you are delivering is established.

You can also investigate who are the developers who are carrying out the presale and check the status of complaints in PROFECO.

How to avoid fraud?

Do not deposit or transfer money to someone you have not met in person, and do not do so without first reading the contract.

Look for properties or mortgages through reliable agencies that are regulated and have current certificates that validate the security of the website.

Now that you know which are the most common real estate frauds and the best practices to protect yourself when buying a home, it is time for you to know which is the best option on the market.

ION Financiera is governed under the strict legal framework required by the real estate world, we are the first SOFOM regulated by its own will before the National Banking and Securities Commission and the CONDUSEF.

We have the experience, strength and professionalism you need for.


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