APRERA Cautions Homebuyers Against Unregistered Real Estate Projects

The Andhra Pradesh Real Estate Regulatory Authority (APRERA) has issued a strong advisory to the public, cautioning homebuyers against engaging in financial transactions related to unregistered flats, apartments, and plotted developments. The regulatory body’s Chairman, S. Suresh Kumar, has flagged increasing instances where builders and agents are allegedly marketing and collecting advance payments for projects that have not been granted registration under the Real Estate (Regulation and Development) Act, 2016.

According to the authority, there has been a recent surge in complaints and reports about developers promoting so-called “pre-launch” offers. These activities are being undertaken without the mandatory project registration, which constitutes a violation under the Act. APRERA noted that some promoters and real estate agents are actively advertising and booking units in these projects, often soliciting financial commitments from prospective buyers before completing regulatory formalities.

Section 3 of the RERA Act clearly states that no promoter shall advertise, market, book, sell, or offer for sale any part of a real estate project without registering it with the respective state RERA authority. Furthermore, Section 10 of the Act bars real estate agents from facilitating transactions for any unregistered project.

Mr. Suresh Kumar pointed out that certain developers are engaging in early-stage marketing strategies to raise funds for land acquisition or project development. These offers, usually termed “pre-launch” deals, are often publicized through unofficial channels such as social media or direct marketing. He emphasized that the absence of project registration poses serious risks to buyers, as there is no legal framework to hold the developers accountable in case of delays, construction quality issues, or deviation from approved plans.

The authority has urged developers, builders, and agents to adhere strictly to the provisions of the Act. Promoters are expected to register all real estate projects before initiating any form of public communication or financial transaction with potential customers. Real estate agents involved in marketing or sale of such projects have also been warned against continuing such practices.

To increase public awareness, APRERA is encouraging prospective buyers to verify the registration status of any project through its official portal. The authority has also advised citizens to avoid making bookings or paying advances unless the project is clearly listed and approved by APRERA. This measure, the regulator believes, will safeguard buyers from becoming victims of misinformation or unscrupulous practices.

The advisory comes at a time when real estate activity in Andhra Pradesh is gradually recovering, particularly in Tier 2 and Tier 3 urban centres. With renewed developer interest and evolving consumer demand, APRERA intends to ensure that market growth is accompanied by strict compliance. The regulator also aims to eliminate grey areas in project marketing and establish transparency across all real estate transactions.

Mr. Suresh Kumar highlighted that any promoter or agent found violating the Act’s provisions would face legal action, including monetary penalties and possible criminal proceedings. He further stated that the regulatory authority will not hesitate to initiate enforcement action against repeat offenders or firms found deliberately bypassing registration norms.

In addition to the advisory, APRERA has also reiterated the availability of its public grievance redressal mechanism. Homebuyers facing delays in possession, construction defects, or irregularities in transactions are encouraged to register complaints directly through the APRERA helpdesk or website. This facility is intended to provide a structured and timely resolution process for individual grievances and promote confidence in the regulatory ecosystem.

The authority continues to monitor the real estate market and has stated that it will be conducting random checks and audits of ongoing promotional campaigns to detect unregistered projects. Developers who have already initiated booking or marketing activities without registration are expected to halt operations immediately and apply for formal registration as mandated by law.