Common Malpractices in real estate
CategoriesReal Estate

40 percent of real estate capital is stuck due to malpractices. Well, no more! In this article we talk about common Malpractices in Pakistan Real Estate Business

Pakistan’s real estate sector is very competitive. The real estate sector has a lot of potential to improve the economy. Real estate in Pakistan is one of the safest sectors to invest in due to the recent rise in prices.

The real estate sector is considered to be one of Pakistan’s most lucrative business and investment opportunities due to its high returns and security.

There are many real estate challenges in Pakistan. The real estate sector of Pakistan has malpractices. There isn’t proper attention to this sector. There are no regulatory authorities in Pakistan.

The real estate market of Pakistan has many common malpractices.

List of common Malpractices in Pakistan Real Estate Business

1. Poor Communication

2. Ineffective Marketing

3. Not Having a Clear Vision

4. Not Setting Realistic Expectations

5. Not Being Transparent

6. Failing to Build a Network

7. Ignoring the Client

8. Poor Documentation

9. Lack of Experience

10. Poor Negotiation Skills

11. Not Taking Care of the Client’s Interests

12. Not Monitoring the Business

13. Not Being Responsive

14. Not Paying Attention to the Client’s Needs

15. Not Communicating with the Client

16. Not Using Technology

17. Not Keeping Clients Updated

18. Not Following Up

19. Not Sending Thank You Notes

20. Not Making Sure that the Client is Happy

21. Not Ensuring That the Client Is Satisfied

22. Not Following Up With Potential Clients

23. Not Knowing the Laws

24. Not Being Professional

25. Not Being Accountable

26. Not Being Honest

27. Not Being Transparent

28. Not Being Open to Feedback

29. Not Being Consistent

30. Not Taking Responsibility for Mistakes

31. Not Being Responsible

32. Not Having a Clear Vision

33. Not Having a Clear Marketing Strategy

34. Not Setting Realistic Expectations

35. Not Having a Clear Marketing Plan

36. Not Having a Clear Business Strategy

37. Not Having a Clear Sales Process

38. Not Having a Clear Sales Strategy

39. Not Using Technology

40. Not Building Relationships

41. Not Having a Clear Business Plan

42. Not Being Transparent

43. Not Having a Clear Vision

44. Not Having a Clear Marketing

Few Malpractices are very common in Pakistan Real Estate Business

  1. Honey potting
  2. In-direct Selling
  3. Lack of verification
  4. House Flipping

Honey potting

Images of properties that have been sold or are not available are used to lure people. When a buyer contacts an agent for a property, they say it’s sold out, but the agent has a lead.

They hope to strike a deal by bombarding this lead with other options.

In-direct Selling

This is known as indirect selling and is the process of selling plot files in the name of getting approvals on your own.

This is the largest real estate fraud in Pakistan. When people are shown the dream of making huge profits by investing their money, many people are taken advantage of when they see the dream, but then

A scam where someone will tell you that they are building your dream house, but you will find out that the lots have not yet been sold or even started.

In reality, no such work is done and it’s just a sales trick.


Lack of verification

The lack of regulatory agencies in developing residential, commercial, and/or mixed projects often forces developers to construct them without NOCs.

The Nasla Tower Karachi was demolished due to the result of this.

House Flipping

There are many kinds of real estate scams, but this one is really growing.

In this scam, people who are owners of houses decide to exchange houses or plots of equal value, instead of money or cash involved. It’s a major risk but not many are willing to take.

When the rightful owner of the home claims ownership of the home, it is likely that the owner will try to claim that the house was not properly exchanged.


There are several ways to avoid being cheated by the seller or the agent. First, verify the details of the property before buying it. Be sure about the title, number of rooms, parking space, etc. You should make sure that the information provided is authentic. You should check the previous transactions of the property.

The previous history of the property can tell you a lot about the quality of the real estate. You should look at the location of the property. You should also check the proximity to schools and hospitals.

Make sure that the property you buy is in a safe neighborhood. You should check whether the seller has proper documentation. Check the condition of the property.

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