Hyderabad, Dec 24:  Housing Requirements Customised Solution (HRCS) India has issued a strong advisory for homebuyers, investors, and stakeholders in Hyderabad’s real estate market, highlighting the hidden legal and financial risks associated with pre-launch and non-RERA property projects.

The warnings came during an online awareness webinar titled “Buying a Home Soon? Don’t Take the Risk Blindly”, attended by over 100 participants, including property buyers, investors, industry professionals, and legal experts. The session was led by D. Harshavardhan Reddy, CEO, HRCS India, who shared critical insights on common legal pitfalls in Hyderabad and Bengaluru’s property markets.

Reddy emphasised that loan approval does not equate to legal approval, and relying solely on bank loan sanctions can be a costly misconception. “Banks and NBFCs often approve loans based on buyer indemnity, which leaves the buyer fully responsible for any disputes related to land titles, regulatory violations, or missing approvals,” he warned.

The webinar highlighted risks associated with pre-launch offers and discounted deals, which often lack statutory approvals, clear land titles, or builder guarantees. Recent real estate incidents, including the Hyderabad demolition drive, underscore the consequences of investing in unverified projects, leaving buyers exposed to financial losses and legal uncertainty.

Reddy stressed that RERA registration is non-negotiable for projects with more than eight units, as it ensures:

• 70% of customer funds are secured in an escrow account

• Builder and landowner accountability

• Legal protection for buyers in cases of delay, fraud, or construction quality issues

He also noted that RBI guidelines clearly state that non-RERA projects are ineligible for home loans, even though some lenders may proceed based on buyer indemnity.

HRCS India called on buyers, builders, and bankers to support verified, legally compliant properties, thereby reducing financial risk and mitigating the growing burden of Non-Performing Assets (NPAs) on the banking system.

“Buying property without legal verification is like driving a car without brakes. You might move fast, but you can’t stop safely,” Reddy concluded, urging all stakeholders to prioritise legal due diligence.

HRCS India reaffirmed its commitment to empowering buyers and stakeholders through continuous education, hosting awareness sessions to prevent legal distress and protect property investments.