Open Files: Details and Scams

0 Comments 18 Jan, 2023

If a property has an open file, it means that it is not yet under contract with a buyer and is still available for purchase. In other words, an open file is like a registration form, if it is filled by the customer and the dealer sends it to the society, then it is closed. A plot is only located for a closed file.

How does an Open File work?

As explained above, an open file is only like a registration form. If it is correctly filled and submitted to the authorities, a plot entry is made on that file. Property dealers or marketing agencies buy open files from housing societies in bulk. This way, they get the files cheaper than their actual price. Then these dealers and marketing companies advertise this property and look for customers to sell these files. If they find the clients and can close the deal, then the relevant open file turns into a closed file. The society marks that piece of land as sold and in the next balloting, the buyer gets to know their plot's location.

However, if the dealers or realtors are unable to sell these files in time and all the land of society is sold out. Then these files have to be returned to society within a given time to get back the initial amount paid for them.

Why an Open is Dangerous?

An open file is dangerous because if you are unable to sell it in time, it will lose its value and then you will only get the initial amount paid to buy this file. It gets worse when open dealers in the market sell the open files in bulk to normal customers and deceive them by saying that these files will offer them huge benefits in the Future. Common folks are not that much into the market so they fall prey to these deceptions and buy these open files at higher prices from dealers. In the end, when they are not able to sell these files, they have to return them to society. The society, as per its initial agreement, takes that file back on the initial amount paid by the dealer. Thus, individuals who have bought it at higher rates are left at loss. Marketing Agencies also buy open files in bulk but Societies offer discounts on installments and merging offers for them to compensate for their loss. These offers, however, are not given to open dealers.

How to Avoid Open File Scams?

To avoid open file scams, it is advised that always trust established marketing companies like EFS Marketing to buy files and plots. Most real estate scams are done by open dealers who have no permanent basis anywhere. They will scam a few individuals in one place, earn some money, and move to a different place the next moment. Thus, they are never trustworthy and one should always avoid deals with them.

Societies, mostly, do not fraud as they have to keep their customers intact for some good years. A customer is a one-time asset for dealers, but an asset for life for the societies.

As for the marketing companies, we gave established business places and we deal in multiple Societies at the same place. In this society, we have hundreds of deals and thousands of customers. Hence, we cannot fraud an individual to put our company's whole trust at stake. We have to provide the best services to our customers so we can sustain them and get them to come back to us in the future.

Conclusion

Open Files are a big source of fraud in real estate projects. We humbly advise our readers that always avoid buying open files, especially from open dealers, and only trust established marketing companies. However, if you want to make the selling and buying of files a source of bread and butter, then fully enter this field. This would require your due attention to the real estate market. If you're not constantly in touch with this field, it is not for you. The information keeps updating so quickly that those who are left behind, are left far behind. So keep visiting Our Channel for regular updates.

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