TG-RERA urged to act against pre-launch sales

Unregistered projects and channel partners raise buyer protection concerns

Property Pulse

Pre-launch property sales are coming under renewed scrutiny in Hyderabad, with concerns that projects being promoted before TG-RERA registration could put homebuyers at risk and create an uneven playing field for registered developers. Under the Real Estate (Regulation and Development) Act, a project covered by the law cannot be advertised, marketed, booked or offered for sale before obtaining the required registration.

Real-estate agents facilitating such transactions are also required to comply with registration requirements. The concern is particularly relevant in Hyderabad, where channel partners and property intermediaries have become an important part of the residential sales process. While many operate within the regulatory framework, promotions for projects at the pre-launch stage can make it difficult for buyers to determine whether a project has reached the stage at which bookings can legally be accepted.

A recent case being discussed in the Kollur–ORR corridor involves promotion of a proposed high-rise project reportedly spread across 9.65 acres, with 41 floors and an introductory price of ₹4,699 per sq ft for early bookings. The project's registration status and the legality of any booking or collection would need to be verified from official records before drawing conclusions about a violation.

The attraction of a pre-launch offer is usually the promise of an early-bird price. Buyers may be told that prices will increase once approvals are secured or construction begins. The risk is that a buyer may pay money before being able to verify the project's regulatory status, approvals, land rights, development permissions and other statutory requirements. The issue becomes more significant when channel partners are involved.

Buyers may deal with an intermediary rather than directly with the developer and may assume that an offer being actively marketed is already cleared for sale. TG-RERA has previously cautioned against marketing and sale of projects without registration. Section 3 of RERA requires promoters to register applicable projects before advertising, marketing, booking or offering them for sale.

The industry concern is not about legitimate marketing of registered projects. It is about preventing bookings and collections for projects that are required to be registered but have not yet obtained registration. TG-RERA can examine complaints and promotional activity, verify the registration status of projects being marketed and take action where violations are established.

For buyers, the simplest safeguard is to check the project's TG-RERA registration number and status before paying a booking amount. The registration details should correspond with the project being offered, rather than relying solely on brochures, WhatsApp messages, channel-partner assurances or payment requests. The distinction between an early-stage project and a legally permissible sale is important. A low introductory price does not by itself make a pre-launch transaction safe or permissible.

 Pre-launch Checks

●        Applicable projects must obtain RERA registration first.

●        Advertising and booking before registration are restricted.

●        Real-estate agents must meet registration requirements.

●        Buyers should verify the TG-RERA registration number.

●        Channel-partner assurances should not replace verification.

●        Payment should follow regulatory and project checks.

●        Violations should be established before enforcement action.