Expression of Interest:

Things that need to be pondered are the following few before a buyer gets involved in the ‘Expression of Interest.’

• Should buyers engage in the ‘Expression of Interest (EOI)?’
• Is there any risk involved in the Expression of Interest?
• Is it legal under RERA to sell homes using ‘Expression of Interest?’

In the past, ‘Pre-launches’ were the most occurred event in real estate. However, after the implementation of RERA in 2016, the authority totally banned any such practices. The developers are not allowed to involve in advertising or selling a project without RERA registration.

Previously developers used to lure customers with attractions like discounted prices etc. & a unit of their choice. But if any delay in a project occurs, the home buyers are responsible for bearing the costs that would arise.

Today, projects should have RERA registration that is inclusive of  construction plans, its approvals &  all the required approvals.

‘Expression of Interest’ is a new disguised form of ‘Prelaunch’ and is an IPO type.

To explain a little more, in IPO or financial market, the developer gives you all the project details, and/or product, etc., to the prospective buyer in the pre-booking stage itself. It is said to be the latest sales & marketing strategy where developers sell an apartment in the IPO format. This strategy proved successful at one point in the form of prelaunch, but any repercussions would eventually fall on the buyers.

Once the information is disseminated, the builders next invite the prospective buyers to express interest in their product, for example, a home or any other property with or without a price band. In order to be at the top of the queue, a prospective buyer needs to put an Expression of Interest by putting in a small amount of money as per the value of the property.

The entire process ends with the first preference to the person who has put an Expression of Interest.

However, what is advisable to the prospective buyers is not to prefer the ‘Expression of Interest.’ And any form of advertising, whether directly or indirectly to the buyers without RERA registration, is strictly unacceptable – as per RERA, any such act is illegal. So, clearly it isn’t something a buyer should needs to invest through.

The bottom line is the buyers shouldn’t opt for it; instead, wait and invest only on the RERA registered projects.

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