Will You Enter Dream Home?

King Johnson Koyyada: The construction sector in Hyderabad is currently facing a critical crisis. Just as the history of the world is divided into BC (Before Christ) and AD (After Death), the situation has arisen where the construction sector in Hyderabad has to be divided into RERA and non-RERA projects. You will feel proud, if you buy flat in a project, where as don’t know whether the project will be delivered or not, if you choose Non Rera Project. Therefore, we clearly explain the difference between Rera and UDS/Prelaunch Projects. Based on this, you can come to a final decision.

Benefit of buying RERA-registered property

•  The project will be completed as per the schedule
• If the builder is not able to complete the project as per the schedule, the RERA will take suitable action against the builder acting on the complaint from the buyers
• Once the project is completed and upon occupation of the flat by the owner, if there are any defects in the construction in the first five years, the builder will be accountable alone.
• If one purchases a flat in RERA-approved projects, the buyers will be able to know the carpet area of the flat
• If the builder is not able to complete the project on time or the buyer is not able to make timely payments to the builder, interest will be charged appropriately from builders or the buyers as the case may be.

• There will be no scope for the builders to divert the money collected from buyers to other projects
• The builders should deposit the amount in escrow account. Out of the amount, only 70 per cent of the amount should be used for construction. The expenses should be certified by civil engineer, architect and chartered accountant
• If a builder fails to keep his word to the buyers, the buyers can opt out of the project
• The builder is prohibited from collection of more than 10 per cent of the total cost of the project
• A special authority should be constituted to resolve disputes between buyers and builders
• The buyers can approach builders’ tribunal if the RERA fails to resolve their problems.

What happens if you buy at UDS & Prelaunch?

•  Total flat cost is collected from the buyers in advance.
• Cannot say for sure when construction will be completed.
• If things are not done in a timely manner, there is no point in complaining to anyone.
• RERA builder is responsible for structural defects. We miss this opportunity by buying at prelaunch.
• If you buy in UDS project, you will become a co-owner along with the builder. As a result, if the builder does not build the flat in time and leaves in the middle, all the other members will come and fall on those who bought in UDS.
• UDS promoters say something before prelaunch. Later on they will change the actual plans. The Urban Rise Project in Bachupally is a good example of this.
• If the builder does not complete in a timely manner, he is in a precarious situation. Will have to rely on his benevolence.
• No one dare to ask pre launch promoters regarding the money collected from the buyers is spent.
• If UDS Promoter does not keep his word, you will not get out of it.
• There is no authority to resolve disputes between buyers and builders. If Rera complains, it is less likely to respond.
• If there are problems with the builder, Rera will not solve.