Discovering India’s Pre-launch Real Estate Dilemma!
Now that the real estate market in India has seen a return, investors should be wary of pre-launch operations. There are a lot of questions about the legitimacy, transparency, and risks that these tactics can bring to unsuspecting investors. One of the biggest issues is that developers often ask for pre-financed checks without giving out important info about the project, like rates, sizes, land, floors, FAR, location, and specs. This makes it hard for investors to make smart decisions because they don’t know what’s going on. Plus, some developers say they’ll give out priority numbers to people who give out pre-financed cheques, which can make investors feel rushed and like they’re missing out.
Some developers are even selling projects that haven’t yet been approved by the authorities. Not only is this a violation of RERA regulations, but it also puts investors at risk. India’s real estate market has undergone a massive transformation since the passage of the RERA Act in 2016. This law aims to protect investors by Securing investors’ funds: Under RERA, investors’ and purchasers’ funds must be kept in separate accounts for a minimum of 70% of the project’s value. This money must only be used to cover land-related costs and not for any other purpose. Ensuring transparency in project execution: The law requires builders to produce the initial project documents and customers to sign off on any changes to project plans.
The Real Estate Regulation Agency (RERA) wants to make sure that builders are selling houses based on the carpet area, not the built-up area. This is to make sure that justice is being done. If a project takes too long, customers can get a full refund or keep their money and still make money each month. Builders have to fix any issues that come up within five years of buying the house, and they have to do it within 30 days of getting a complaint. Developers can’t sell, sell, or build projects without registering with RERA, so they need to include a special registration number in all their marketing.
Even though the real estate market in India is starting to take off, it’s important to be careful and make sure any investments you make are in line with the RERA law. We can make sure the market stays healthy and grows while protecting everyone’s interests by being vigilant and being open.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
