Identify Risky Projects On Rera’s Website

We all know that real estate involves high-value transactions and also has the highest returns and lower risks compared to other assets. However, real estate also has several risks that an investor takes to extract returns.

But not everyone is an investor and millionaire, and they are worried about their hard-earned money. We all know if you are from a middle-class family, you are worried about even a hundred rupees if invested. Then real estate, where crores will be involved, how can we just blindly trust everything?

To make everyone aware of the real estate market, Commercial Noida regularly educates people about essential things regarding real estate. Today we will talk about how one can assess the risk associated with a real estate project and invest with optimum safety.

RERA Registered Project

The first step to invest in a green flag project is that it should be RERA Registered. If a project is not RERA registered and someone tells you to invest there because it is cheaper than the other projects, don’t get fooled; you are certainly going to be cheated.

A project without RERA registration is not legally valid, and if a developer sells it without authority and you lose your money, there will be no help given by the legal authority of the concerned state. So, always invest in RERA-registered projects to get legally authorized about your property.

However, it is not 100% certain that a RERA-registered project will not have any flaws. Developers can still default, projects can still be delayed, and disputes can still occur. 

But because the projects are RERA-registered, you will have your projects delivered and appropriate compensation for the delays. But still, to be on the safer side, how can one assess risk-free projects and invest there on RERA’s Website?

Check Project Details In RERA

To check the credibility of any project, you can check these things on RERA’s website:

       •  Proposed start and completion date
       •  Project extension date
       •  Quarterly progress report
       •  Customer complaints
       •  Number of promoters
       •  Other projects of the developer
       •  Legal cases

Proposed Start And Completion Date

The start and completion dates on RERA’s website for your state show when the project is started and when it is supposed to be completed. Slight delays of up to 6 months are quite normal.

But if a project is delayed for more than six months, there are some issues, and you need to look for what is causing the hurdle. If you find the issue serious, then hold your back and think again before investing.

Project Extension Date

It is always advised to keep a close eye on your desired project’s extension. An extension can help you assess the potential risk of the project. As I told you earlier, it is pretty standard for projects to get delayed up to 6 months, but beyond that, it is suspicious. Also, look for extension certificates on the RERA website.

Quarterly Progress Report

As per RERA’s law, every developer must submit a quarterly progress report (QPR) on RERA’s website. The QPR shows whether the project is being completed as per the plans. It is essential for every investor and buyer to check quarterly progress reports so that they can confirm and tally whether everything is right or not. The developer does not update the QPR unless the project has received the occupancy certificate or there is some serious issue with the project.

Customer Complaints

It is also essential to check how many complaints have been registered against a developer and a project. However, there are also some complaints regarding every project. If there are multiple complaints, and most of them refer to the same issue, it indicates a severe problem; you should check everything meticulously to be assured before investing.

In this image, you can see zero complaints about the project and the developer. The project I took for reference here is Splendor Onyx Blue, and the developer is Splendor Information Technology Private Limited.

Complaints show whether the project and the developer are credible, whether you should invest in them, and whether you should hold your back. Multiple complaints about a project and developer show that the project could be risky and can have disputes in the future.

Number Of Promoters

If a project has many promoters, it also indicates risk in the future. If one of the project's promoters is not satisfied with something and raises a dispute, there will be legal proceedings that can affect the completion of the project. If the dispute is severe, the project can be delayed for a long time until the conflict gets resolved. So, always check the promoters and how many promoters a project has.

Legal Cases

Always look for the number of legal cases regarding the project or developer. A high number of cases against a developer shows that the developer has no credibility and is cheating people. If the developer has few cases, the developer is good and can be trusted.

On UP RERA’s website, you can also find the hearing date of a particular case and see the number of hearings scheduled on that date.

Other Projects Of The Developer

Always look at the concerned developer's other projects and their history. Look for how many projects the developer has delayed, how many cases are on him, how many complaints a developer has against him, and how many projects he has accomplished. If you are satisfied with all these aspects, you can proceed with the investment; otherwise, think before proceeding.

Conclusion 

Investing in real estate can be safer if you carefully check a project's details on the RERA website. Make sure the project is RERA-registered, and review its proposed start and completion dates, any extensions, and quarterly progress reports. 

Pay attention to customer complaints, the number of promoters, and any legal cases against the developer. Additionally, research the developer's other projects and their track record. 

By thoroughly evaluating these aspects, you can better assess the risks and make a more informed investment decision, protecting your hard-earned money and ensuring a more secure investment.