Summary of this article
HRERA warns buyers against investing in unregistered real estate projects.
Buyers should verify RERA registration numbers and project details.
Developers can face legal action for marketing or selling projects without registration.
The Haryana Real Estate Regulatory Authority (HRERA) has issued a public advisory that cautions prospective homebuyers against purchasing or booking properties in unregistered real estate projects. The authority has urged buyers to be diligent and verify the project’s regulatory status before they make any transactions. The advisory covers a range of properties like plots, flats, villas and apartments.
HRERA Gurugram Chairman has cautioned that buyers should verify project details such as the RERA Registration certificate, registration number, and project credibility through the authority’s official records, as per a report by the Hindustan Times.
This warning comes at a time when concerns over project reliability are great. HRERA said that it has tackled the issue of misleading advertisements for unapproved projects and has directed the promoters to refrain from undertaking pre-launch advertising and promotional formalities before they sought their approvals and registrations.
Steps Taken To Strengthen The Homebuyers
Under the Real Estate (Regulation and Development) Act, 2016, projects that fall within the scope of the legislation are required to be registered under the RERA authority of their state before they are marketed or sold. HRERA has advised homebuyers to restrict their purchases to projects that are registered, since investing in any project that is not in compliance with RERA can expose the buyers to legal and financial risks.
The regulator has also made a point of the role of real estate agents in ensuring compliance. Under Section 9 of the RERA Act, agents who are conducting the sale or purchase of units in the registered projects are expected to obtain their registration; otherwise, they can face legal consequences.
The body highlights Section 59(2) of the RERA Act, under which advertising, marketing, booking, or sale of real estate projects that are yet to be RERA-registered are treated as a punishable offence. This provision is intended to prevent the developers from collecting money from buyers before meeting the regulatory requirements.
What Does This Mean For Homebuyers?
For homebuyers, the warning by HRERA reinforced the importance of checking the regulatory records rather than just depending on advertisements and brochures to find out the credibility of the project. Buyers should independently confirm the project’s registration number and ensure that the details are available on the portal of the regulator.
