The present situation
Look at any hoarding of a real estate advertisement and it’s unlikely you will find details that do not have a “conditions apply” star affixed to it. Most of these hoardings are attractive, but the actual site or deal may not necessarily be so. Examples of advertisements promising huge discounts, when the project hasn’t even taken off abound. Then there are attractions such as assured returns, zero instalments till possession, early possession and proximity to central areas. But most of these give no information on the authenticity of the developer or the land acquired for the project. All that is set to change.
The welcome change
In a path-breaking move that could put an end to misleading advertisements and fraudulent property deals in times to come, the Haryana government has made it mandatory for developers and builders to mention project details in advertisements. The details should include the project’s licence number, layout plans and the total number of apartments to be built in the project, the government has said. Haryana is the first state to introduce such a regulation but has paved a way for other states to follow.
The new rules for real estate advertisements have already come into effect and all new advertisements need to be in keeping with the rule. Those not complying with the order may have to serve a three-year prison term.
What it means for you
You will no longer be misled into a project by attractive advertisements since they will give a more transparent and clear picture of what’s in store. Simply put, it will enable you to make an informed choice.
How to use the information
Based on the information given by the developer, you can compare the projects and scale of development within the project. For instance, a residential project having 500 small-sized apartments on a 10-acre plot will be more densely populated than a project having 100 spacious low-rise apartment complexes in the same area.
Also, once you will have the licence number of the developer, you can check its authenticity with the authority by filing an application under the Right to Information Act about the land that is with the developer. A project that has all the clearances and approvals will be a safe investment.