Property buyers beware of buyback bait

Realty Bytes

♦ Many projects lack improvement in amenities

♦ Some projects not even registered under TS-RERA

♦ Without approval, several small-time realtors selling open plots

Almost all reputed builders and developers have obtained the RERA registration for their projects. Only the small-timers, who want to earn a quick buck, will go by shortcuts to trap the customers. Levying penalty is the only solution to this menace. As the elections are coming closer, the government is not focusing on this issue - V Rajashekar Reddy, general secretary, Credai-Hyd tells Bizz Buzz

Hyderabad: After receiving repeated requests from the sales team of a real estate group, D Bharani, a city-based chartered accountant, went to visit their site at Nandikandi. The layout is at a very nascent stage having no basic amenities like roads and drainages. The real estate developer has showcased a pre-fabricated model house there and promised all facilities within a short span of time.

When Bharani was not convinced by his promises, the company offered a buyback guarantee of the plot after a year or two. The pre-launch price was fixed at Rs11,999 per sq yard. Within 12 months, it assured to buy back at Rs22,999 per sq yard after the project gets approved by the DTCP. Although it was an irresistible offer, he politely rejected it as he knows the consequences of buying an unapproved property.

Not every customer is as judicious as Bharani. Many people are falling prey to such real estate deals that seem lucrative but actually very risky. Those, who invested their hard-earned money in pre-launched properties during pre-Covid times, have not yet received the money back. The unscrupulous developers continue to create fake impression that the prices are going up.

Without all approvals in place, several small-time realtors have been selling open plots in areas like Maheswaram, Sadashivpet, Kandukur, Balanagar, Srisailam Highway and Yadadri. The plots, which were used to be priced at Rs8,000 per sq yard before the pandemic, are now being quoted above Rs12,000 per sq yard. However, those projects have seen neither improvement in the amenities nor they were registered under the Telangana Real Estate Regulatory Authority (TS-RERA).

Price is not the only factor to consider before purchasing any property. Apart from verifying the credibility and previous projects of the developer, the buyers shall also check the approvals from DTCP/ HMDA/ GHMC/ Urban Development Authority or local bodies and TS RERA registration. These days, unscrupulous real estate developers are luring middle-class home buyers through misleading advertisements on social media.

The real estate experts are asking the property investors and home buyers to beware of the online campaigns on social media platforms like YouTube, WhatsApp, Facebook and Instagram, and digital classifieds on Olx and Quikr. While zeroing on any layout, they suggest to mainly observe two things in the advertisement - DTCP layout LP number and RERA registration number.

V Rajashekar Reddy, General Secretary of Credai Hyderabad, said: “Almost all reputed builders and developers have obtained the RERA registration for their projects. Only the small-timers, who want to earn a quick buck, will go by shortcuts to trap the customers. Levying penalty is the only solution to this menace. As the elections are coming closer, the government is not focusing on this issue.”

He further said, “Corruption has been minimised across all government departments during the last few years. Thanks to the Telangana State Building Permissions and Self Certification System (TS-bPASS), a single-window approval system, and Dharani portal, an integrated land records management system. If not the realtors would have spent more money, and the ultimate price burden falls on the end-users. More such changes must be incorporated to streamline the realty sector.”

Many real estate projects, particularly plotted ventures in and around Hyderabad, don’t have the TS-RERA registration number. Before buying any plot, the property purchasers need to check whether it is registered under the TS-RERA or not. Every advertisement and promotional activity, on an online or offline platform, the RERA registration number must be mentioned across each publicity material.

In the last couple of months, the TS-RERA has aggressively issued show cause notices to at least 30 real estate projects in the city and ordered the developers to submit their explanations within 15 days. As per the officials, the authority has so far received responses from very few companies and expecting letters from rest of them within a short period.

When asked about further action from the authority, TS-RERA Chairman Dr N Satyanarayana said, “We are receiving the response letters from the developers who were issued show cause notices recently. We will wait for the explanation from others as well. Based on that, our team is taking and issuing show cause notices for penalising as per the RERA rules.”

He further said that the authority has also initiated virtual hearing of the complaints from property buyers against the developers. Online inquiries were being conducted to resolve the cases more quickly. The NRI complainants can also attend the online hearing from any part of the world. This facility is also helpful to senior citizens.