Introduction

CeylonProperty.lk continues its podcast conversation with Mr. Sameera Silva, exploring an important issue that every property buyer in Sri Lanka should understand — property fraud.

Buying land, a house, or any other property is a major financial decision. A property may look genuine, the seller may provide documents, and everything may appear normal. However, buyers should never rely on appearances alone.

Property fraud can involve fake ownership, forged deeds, fake signatures, identity fraud, misuse of Power of Attorney, or someone attempting to sell a property without the actual owner's knowledge.

This can become even more complicated when the real owner lives overseas and has left the property with a relative, friend, or representative.

Proper verification before buying can help reduce these risks and protect a buyer from making a costly mistake.

Key Checks Before Buying

1. Verify Who Is Selling the Property

The first question a buyer should ask is:

Who is actually selling the property?

Someone may claim to be the owner, but that does not automatically mean they have the legal right to sell it.

For example, a person named Mr. Silva may approach you and say, "I am the owner." The property may exist and the documents may look genuine, but the buyer should still verify that the person is actually the person named in the ownership records.

Always verify the seller's identity and connection to the property.

2. Confirm the Actual Owner

A person may be looking after a property without actually owning it.

This can happen when a property owner leaves Sri Lanka and asks a relative or friend to look after the property.

Years later, that person may attempt to sell it.

Remember:

The person looking after the property is not necessarily the owner.

Buyers should confirm who legally owns the property, whether there are other owners, and who has the authority to sell.

3. Check Any Power of Attorney

Power of Attorney is often relevant when a property owner lives overseas.

For example, the actual owner may be living in Melbourne while someone in Sri Lanka handles the property.

If a Power of Attorney is being used, buyers should check who gave it, who received it, whether it is valid, and whether it actually allows that person to sell the property.

Do not assume that simply holding a Power of Attorney gives someone unlimited authority.

4. Make Sure the Owner Knows About the Sale

If the owner is overseas or another person is handling the sale, buyers should take reasonable steps to confirm that the actual owner knows about and has authorized the transaction.

If someone says:

"The owner is in Australia, and I am selling the property for them."

That claim should be properly verified before proceeding.

Where appropriate, communication with the actual owner can provide an additional level of confidence.

5. Verify the Deed and Ownership History

A seller having a deed does not automatically mean that everything is clear.

The relevant deeds and ownership records should be properly checked for issues such as previous transfers, co-owners, mortgages, disputes, or other interests affecting the property.

A seller may say:

"The title is clear."

However, buyers should still have the title independently reviewed by a qualified professional.

6. Watch Out for Fake Documents and Signatures

Property fraud can also involve forged signatures, fake deeds, altered documents, false identification, or impersonation.

With modern technology, fraudulent documents can sometimes look convincing.

This is why buyers should not rely only on what a document looks like.

Proper professional verification is essential.

7. Check Where Your Money Is Going

Before paying a deposit or making a large payment, understand exactly who is receiving the money.

If a representative or Power of Attorney holder is handling the sale, the payment arrangement should be clearly documented and professionally checked.

Buyers should be especially careful when they are asked to transfer large amounts to an account belonging to someone other than the actual owner.

8. Cross-Check Everything Before You Commit

Before completing the purchase, cross-check the most important details:

The Person — Who is selling?

The Owner — Who actually owns the property?

The Authority — Does the seller have the legal right to sell?

The Documents — Have the deeds and other documents been properly verified?

The Payment — Who is entitled to receive the money?

If something does not make sense, do not ignore it.

Stop and investigate before proceeding.

The Bottom Line

Property fraud is not always easy to identify. A person may not be the real owner. A document may not be genuine. A signature may be forged. A Power of Attorney may be misused.

There is no way to eliminate every risk from a property transaction. However, proper due diligence can significantly reduce the risk.

As highlighted in the conversation with Mr. Sameera Silva, buyers should take the time to verify the person, the ownership, the documents, the authority to sell, and the payment process before committing their money.