Wednesday, February 25, 2009

Unscrupulous real estate brokers will cheat you

The Hindu reports

Some go strictly by an unwritten code. They can be called honest brokers

Middlemen, or brokers as they are called, are found in almost all major business deals today. They advertise the sale, educate the client and broker the deal by functioning as a go-between.

It is in the property business that they are thriving. However, many believe that honesty does not always pay in brokering. That is, perhaps, why some real-estate middlemen become rich overnight. Their wealth often makes the buyer and the seller grow suspicious. But their capabilities in brokering and striking deals find little parallel.

They usually come as glib talkers. Their payment is fixed, often as a percentage of the sale value. In most property deals, brokers get two to four per cent of the total value as commission. Some go strictly by this unwritten code. They can be called honest brokers.

But there are others who do not care for the commission. Their aim is to strike the deal at any cost. And, often, they play an unconscionable game in achieving that end.

Desperate sellers

Their victims are usually desperate sellers. If you want to sell your property somehow, better beware. You may not enjoy the complete benefit from the deal if you fully trust the broker. Better make sure that you interact with the buyer.

Unscrupulous brokers often create situations where the buyer and the seller never see face to face. Their modus operandi is simple. They may approach you, saying that your property is not worth the price you ask.

After waiting for some time, you may be prompted to reduce the price. Then, they may approach again and make a negotiation.

For example, if you expect to get Rs. 10 lakh for your property, the broker offers Rs. 8 lakh or so. You may be somehow prompted to accept the offer.

The broker will tell you that if this opportunity is not grabbed, you will never get a better price.

Differing rates

The broker at the same time approaches a potential buyer offering him your property for Rs. 10 lakh or above.

He may be ready for a bargain. Yet, the price of sale fixed for the buyer will be more than the price of sale set for the seller.

The difference may be lakhs of rupees. But neither the seller nor the buyer gets the benefit. Only the broker makes money.


Anonymous said...

Government Bails out Builders through SBI in India

More Frauds at

Frauds of India

Anonymous said...

TCS says no salary hike next year, job cuts possible

KOLKATA: As part of cost cutting measures to tackle global economic downturn, IT major TCS on Thursday said job cuts are possible and also ruled out salary hikes next year. TCS Managing Director S Ramadorai said "there would be no hike in salaries in the forthcoming year" and added that "job cuts are possible if the situation worsens".

Adding further that TCS has frozen "lateral intake" he said the company is reviewing variable pay component on employee salaries.


shailesh said...

India News Digest: 20,000 Indians Returned Losing Jobs Abroad

Meltdown effect: 20,000 Indians returned losing jobs abroad

About 20,000 Indians have returned home after losing their jobs overseas due to the global economic crisis, the government said today.

Though the exact number of people who have returned is not available, there are reports which indicate that between 16,000 to 20,000 Indians have come back here after the economic slowdown, Overseas Indian Affairs Minister Vyalar Ravi told the Rajya Sabha during Question Hour.

shailesh said...

What to do about black money?

The National Institute of Public Finance and Policy ranged it to be between Rs. 31,584 crore and Rs. 36,786 crore during 1983-84. As recent as year 2008, Indian newspapers reported that Rs. 70,00,000 crore are in Switzerland banks — it couldn’t be all black. No one knows the accuracy of any of these statistics, but they are mind-boggling and show that black money is growing.

shailesh said...

India's Deficit Threatens 'Junk' Rating

Standard & Poor's warns India of further downgrades as the country's exports sink and extra borrowing raises its deficit to 12% of GDP.

On Feb. 24, Standard & Poor's sniffed at all the extra borrowing, which has raised India's total deficit to about 12% of its gross domestic product, and revised the country's outlook downward to negative from stable. While S&P reaffirmed its BBB- rating, Takahira Ogawa, the analyst who recommended the change, says the ratings agency would be watching India's fiscal condition closely for the next few months. "We see more possibility for a downgrade later on down the line," he says. "In a sense, this is a warning."

In Parliament last week, announcing his interim budget, Finance Minister Pranab Mukherjee said his primary concern was stimulating the economy, not holding down the deficit. Just over two years ago, Indian officials had said they would try to hold the federal deficit down to 2.5%.

Anonymous said...

scratching my head - I'm not sure how the all the comments above are related to the original post...

Anonymous said...

Agent is agent; it doesn’t matter where they act as middle man, flesh business or real estate business. As there was a bubble they started real estate dalali.