GURGAON: The state government’s two-year-old drive to register all property agents in order to check frauds has failed to move beyond papers.
This was brought to light when the director general of town and country planning department cancelled the licence of a project in Gurgaon for pre-launch before the building plans were approved. Many brokers were aggressively advertising these offers.
The recent incident where the authorities acted against a project in Sector 112 (near Dwarka Expressway) is said to be the tip of the iceberg, according to market analysts. The practice of pre-launching a project gets the developers easy money from buyers and “visibility” in the market. In return, the brokers get higher commissions for every buyer. However, the perils for buyers are very high.
Usually, there is no formal agreement between the customer and the builder at the pre-launch stage, leaving the buyer in a vulnerable position. Similarly, in case of any legal problem like rejection of official approvals, buyers stand to lose. Buyers might also have their money forfeited by the builder on pretexts like late payments, etc.
The state government’s drive to charge a fee from brokerage firms around the city for the licence certificate has failed because even those without the certificate are able to do business, say brokers who have paid for registration.
In a city where one can find a property dealer on every street, only 1,450 brokers’ licences have been issued by the administration.
“One rarely hears of any action against property dealers despite rampant frauds in the unregulated market. Registered brokers have not gained anything except a piece of paper which displays the licence details,” said Sushant, a registered broker.
According to Sanjay Sharma, managing director, QuBREX, a real estate analysis firm, there is a difference between a pre-launch and a soft launch. “During soft launch, the builder might have all licences and NOCs in place while in case of a pre-launch, the builder does not have most of the required documents,” he said.
However, when asked, deputy commissioner P C Meena said that every complaint of pre-launch is passed on to the TCP headquarters, which has the authority to initiate disciplinary action.
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