A startling revelation has emerged from within India's real estate regulatory framework, exposing critical gaps that could leave homebuyers vulnerable to hidden financial liabilities. A member of the Central Advisory Council (CAC) has raised serious concerns about the current implementation of RERA (Real Estate Regulatory Authority).
The Hidden Danger for Homebuyers
The core issue identified is that builders and developers are not mandated to provide formal declarations about pending dues and liabilities on their projects. This means homebuyers could unknowingly purchase properties burdened with undisclosed financial obligations that might surface after possession.
Official Demand for Stronger Safeguards
The CAC member has formally urged authorities to make such declarations mandatory for all real estate projects. This crucial reform would force builders to transparently disclose any outstanding payments, dues, or financial liabilities associated with their projects before selling units to consumers.
Why This Matters to Every Homebuyer
- Hidden Liabilities: Current homebuyers might inherit unexpected financial burdens
- Transparency Gap: Lack of mandatory disclosure puts consumers at disadvantage
- Legal Protection: Proper declarations would strengthen buyer rights under RERA
- Investment Security: Complete financial transparency crucial for property investments
The Path Forward for Real Estate Regulation
This development highlights the ongoing evolution of India's real estate regulatory environment. While RERA has significantly improved industry standards since its implementation, such gaps indicate the need for continuous refinement of the framework to ensure comprehensive consumer protection.
The proposed mandatory declaration system would represent a significant step forward in creating a more transparent and accountable real estate sector, ultimately building greater trust between developers and homebuyers across the country.
