How to file complaints against fake online real estate listings?

The real estate sector, particularly online, has become a common target for scammers who post fake listings to deceive potential buyers or renters. These fraudulent listings can involve misrepresentation of property details, fake photos, or demands for advance payments without delivering any real property. Fortunately, there are several legal and regulatory mechanisms in place for consumers to file complaints and take action against such deceptive practices.

How to File Complaints Against Fake Online Real Estate Listings

• If you come across a fake real estate listing, here’s how you can proceed to file a complaint and take action:

Report to the Platform Hosting the Listing

• Step 1: Contact the Website or App: If you’ve found a fake listing on an online platform (like MagicBricks, 99acres, or OLX), the first step is to report the fraudulent listing directly to the platform. Most real estate websites and apps have an in-built Report a Problem or Flag Listing feature.
• Step 2: Provide Evidence: When reporting the listing, provide any evidence you have such as screenshots, communication with the seller, or details about the listing that seem suspicious (e.g., unrealistic prices, poor-quality photos, unresponsive agents). This can help the platform take immediate action, such as removing the listing or blocking the seller.

File a Complaint with Consumer Forum or Consumer Court

• Step 1: File with Consumer Forum: If the fraudulent listing is causing harm, such as financial loss or emotional distress, consumers have the right to file a complaint with their District Consumer Forum. Under the Consumer Protection Act, 2019, misrepresentation or deceptive advertising falls under unfair trade practices.
• How to File: Prepare a complaint detailing the fraudulent listing, the amount of money lost (if any), and the steps you have taken to resolve the issue (e.g., contacting the seller, platform). Attach evidence such as screenshots and communication records.
• Step 2: Seek Redressal: The Consumer Forum may issue a ruling that could include compensation, an order for the website to take down the fake listing, or other appropriate action.

Report to the Real Estate Regulatory Authority (RERA)

• In India, RERA (Real Estate Regulatory Authority) is responsible for ensuring transparency and accountability in the real estate sector. If the fake listing is related to a real estate project that falls under RERA’s jurisdiction, the consumer can file a complaint with RERA.
• How to File: Visit the official RERA website for your state and submit a complaint online. RERA can take action against builders, developers, or agents who are found to be misrepresenting properties or engaging in fraudulent activities.

File a Cyber Crime Complaint

• Step 1: Report to Cyber Crime Cell: If the fraudulent real estate listing involves financial fraud, such as requesting advance payments for non-existent properties, you can report it to the Cyber Crime Cell of your local police. Online fraud that involves financial transactions falls under cybercrimes, and law enforcement can investigate the matter further.
• How to File: File a complaint on the National Cyber Crime Reporting Portal or with your local police. Provide detailed information, such as the fake listing, payment details, bank account numbers, and any correspondence with the scammer.
• Step 2: Investigate the Fraud: Once the complaint is filed, the authorities will investigate the issue, track the scammer, and may take legal action, including arresting the fraudster or pursuing financial restitution.

Notify the Advertising Regulatory Authorities

• In some cases, fake real estate listings can be considered an advertising violation. If the fraudulent listing involves misleading advertisements, consumers can file a complaint with Advertising Standards Council of India (ASCI), which oversees false or misleading claims in advertisements.
• How to File: Visit the ASCI website and submit a complaint with supporting evidence. ASCI can issue guidelines to remove misleading ads and protect consumer interests.

Compensation and Legal Redressal

• Consumers who fall victim to fake online real estate listings may be entitled to compensation under the Consumer Protection Act for the inconvenience, distress, or financial loss caused by fraudulent activities. Here’s how the legal system addresses compensation:

Compensation for Financial Losses

• If the consumer has paid money to the fraudster (e.g., through a booking amount or advance payment) for a property that does not exist, they are entitled to a refund and compensation for damages under the Consumer Protection Act, 2019.

Compensation for Distress

• Fraudulent listings can cause significant mental and emotional distress. If the consumer can prove that the scam has caused significant harm, the court may award compensation for emotional distress in addition to any financial loss.

Refund of Payments Made

• If the fraudulent listing involved payment for a non-existent property, the consumer can file for a refund of the amount paid to the fraudster. If the seller or platform fails to resolve the issue, the matter can be taken up in consumer court for legal redressal.

Action Against the Platform

• If a platform fails to remove a fraudulent listing or takes no action after being notified, consumers can seek legal redressal against the platform under the Intermediary Liability Rules of the Information Technology Act, 2000.

Example

• Scenario: A consumer comes across an online real estate listing for an apartment in a well-known city, with attractive pricing and photos. After making an advance payment to the seller, they realize the property doesn’t exist, and the contact number provided is unresponsive. The consumer feels deceived and wishes to seek redressal.

Steps the Consumer Should Take:

• Report the Fraud to the Platform: The consumer reports the fake listing to the platform where it was listed, providing evidence such as screenshots and payment details.
• File a Complaint with RERA: The consumer also files a complaint with the state RERA authority if the listing was related to a real estate project under RERA.
• File a Complaint with Cyber Crime Cell: The consumer reports the fraud to the local Cyber Crime Cell and provides evidence of the payment made to the fraudulent seller.
• Seek Legal Redressal: If the issue isn’t resolved, the consumer files a complaint in the Consumer Court for a refund, compensation, and removal of the fraudulent listing.

Consumer Safety Tips

• Verify Listings: Always verify the authenticity of real estate listings by visiting the property and confirming details with the listed owner or agent.
• Avoid Paying Advances Upfront: Avoid making large payments or deposits before thoroughly verifying the property and seller.
• Check for RERA Registration: Ensure the property is registered with RERA to confirm its legitimacy.
• Use Trusted Platforms: Use well-known, trusted online platforms that have stringent verification processes for listings.

By following these steps and knowing your rights, you can effectively tackle fake real estate listings and hold the responsible parties accountable.