Are pre-launch offer scams common in the Indian real estate market?

Yes, pre-launch offer scams are common in the Indian real estate market, where developers or agents promise attractive discounts or low prices to lure buyers before the project is launched. This can lead to:

1. Price rise: Artificially inflated prices due to false demand created by pre-launch offers.

2. RERA violations: Pre-launch offers often violate Section 3 and Section 4 of the RERA Act, which mandate registration and disclosure of projects.

3. Agent liability: Real estate agents may also be violators of the RERA Act if they participate in or promote pre-launch offers without ensuring compliance.

4. Risk to buyers: Token advances or money spent may be at risk if the project is not registered or if the developer fails to deliver.

5. RERA resolution: RERA can resolve pre-launch related issues by:

- Ensuring project registration and disclosure.

- Investigating complaints and taking action against violators.

- Providing a platform for buyers to file complaints and seek redressal.

To avoid falling prey to pre-launch scams:

1. Verify project registration and RERA compliance.

2. Check for clear documentation and transparent pricing.

3. Be cautious of unusually low prices or discounts.

4. Research the developer's reputation and past projects.

5. Seek legal advice before making any payments.

Remember, RERA is in place to protect buyers' interests, and awareness is key to avoiding pre-launch offer scams.

Best Wishes

Rajeev Kumar Jha, Advocate

RERA Legal Services in Bangalore | Technical & Environmental due diligence || Sarve Permits