Real estate in India is today’s most significant area for investment and development. The great cities of Bombay, Delhi, Calcutta, Madras, Bangalore, with high economic growth and speedy urbanisation, have provided a setting for greatly more frequent and also more complex transactions in property. Yet alongside the property boom, disputes and court cases are also on the increase.
A Point shared by both buyers and sellers in property sales is real estate fraud. Real estate fraud, along with misrepresentation in a transaction, can cause financial loss, lawsuits and even the abolition of contracts agreed to. It is necessary at such times to seek advice from lawyers when considering the transaction that you are thinking about carrying out.
This blog will discuss the details of the role of a lawyer for misrepresentation in Real Estate Transactions in India and the legal help available for both parties.
Misrepresentation in Real Estate Transactions
We all know that lies and deception in any one-sided real estate transaction are very common. In other words, it is always essential to eliminate all nonsense; a seller, developer or builder might present untrue information which causes the buyer to purchase.
A case in point would be if a developer said that a residential project was fully authorised, but in fact, the relevant approvals are still in process. Or a vendor may misuse land square footage and simply withhold from addressing ownership disputes. These types of misrepresentation can seriously affect the buyer’s investment and legal ownership.
Types of Misrepresentation
Misrepresentation can take different forms in real estate transactions. Understanding the types helps in identifying the right course of legal action.
1. Innocent Misrepresentation
This happens when false information is provided without any intent to deceive. For example, a seller may unknowingly provide incorrect information about property boundaries.
2. Negligent Misrepresentation
In this case, the party making the statement does not take reasonable care to ensure accuracy. For example, a developer carelessly assures buyers that the property is free from encumbrances without proper verification.
3. Fraud Misrepresentation
Fraudulent Misrepresentation is where, to deceive the other party and gain an unfair advantage, a party deliberately passes off false information. Thus, for example, a seller knows their property is in litigation but fails to disclose this fact to obtain a higher price.
Each type of misrepresentation has different legal consequences, but all can lead to disputes and claims.
Common Instances of Misrepresentation in Real Estate
Misrepresentation in the Indian real estate market takes many forms. Some of these include:
- Unfulfilled Promises in Approval and Clearance: While they are still pending, developers may claim to have obtained all necessary government approvals.
- Misrepresentation of the size and dimensions: The actual built-up area may differ from what is offered in brochures.
- Unrevealed liabilities: Sellers may fail to mention that the property is mortgaged or involved in lawsuits.
- Disguised quarrels of law: Monetary disputes from previous sales are frequently not brought into the open when someone buys a property with its freehold title and pays no attention to what happened before that time
- Extra facilities and features: Developers often publicise facilities such as gyms, parks, or swimming pools that may never be built.
If Misrepresentation is Suspected of You, You Should Take These Actions
When a buyer or seller suspects misrepresentation, the following steps should be taken:
- Evidence Gathering: Save all papers, brochures, and ads related to selling and buying property in a file for later use as evidence.
- Discuss it with a Legal Professional: Engage a lawyer to help explain remedies.
- Use a Lawyer’s Letter of Claim: The other party will be clarifying their stance or taking action through a letter from a lawyer (usually).
- Take Legal Action: You can also complain to RERA, Consumer Protection Act or, as appropriate, make an application to the local court for redress.
- Consider Criminal Prosecution: In the event of fraudulent misrepresentation, report to the police.
Conclusion
We are the best lawyers in Delhi, and we have the best team to handle these cases easily without taking extra time for consultation. So allow us to handle these cases with care and contact us as soon as possible.