Are you buying a flat in Casagrand?

Recently, the Casagrand company from Chennai has been creating a lot of buzz with its big announcements. In the first week itself, they released newspaper ads claiming to have sold over a hundred flats. After that, they grandly launched another new project in Rajendra Nagar. The entry of a construction company from a neighbouring state into Hyderabad and making waves in our real estate market is certainly an interesting development.

Do you remember? About ten years ago, the G Square company from Chennai similarly created a huge buzz in Hyderabad by launching two projects. Their promotions attracted a long queue of buyers for those ventures. However, after some time, it was discovered that there were issues with those ventures, and the buyers eventually backed out. Fortunately, since those were ventures, the buyers didn’t suffer significant losses. But now, Casagrand is constructing multi-story projects, and they have received TG RERA approval for them. The question is, what will happen if any issues arise with the project after the construction is completed?

Whether you’re buying a flat from a Chennai company, a villa from a Bengaluru company, or a property from a Hyderabad builder, when you are in the process of purchasing a property, it’s important to check if the sale agreement is within the scope of RERA (Real Estate Regulation and Development Act). You need to confirm this before signing any documents. Make sure to ask the builder about it directly. Only if the sale agreement is compliant with RERA regulations should you sign it.

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A large number of builders are engaging in a practice where they first sell flats under the guise of a pre-launch sale or expression of interest. They collect money from buyers in the form of cheques and then proceed with the sale agreement only after receiving the RERA number. In such cases, most builders tend to draft the sale agreement unilaterally. Many buyers don’t even bother to check what’s included in the agreement and sometimes treat it as a business unrelated to them. As a result, they end up signing the sale agreement without understanding it properly.

However, it’s crucial for every buyer to understand that the builder must provide a sale agreement that complies with RERA regulations. This is something you should ask the builder directly. Make sure you insist that the sale agreement be prepared in line with RERA guidelines.

Since the implementation of the RERA Act, builders can no longer unilaterally draft sale agreements. If any issues arise and the buyers approach RERA, the one-sided agreements made by the builder will not hold up. Even if the terms in the agreement are changed, the courts will not accept it.

If a builder fails to draft an agreement according to RERA regulations and, due to an issue, a dispute arises, the builder could be penalized. Therefore, it’s essential that construction companies always comply with the RERA Act when drafting sale agreements. This ensures that both parties are protected and that the agreement stands legally valid.