Hyderabad: Housing Requirements Customised Solution (HRCS) India has cautioned homebuyers and investors about hidden legal risks in Hyderabad’s booming real estate market. Speaking at an online webinar titled “Buying a Home Soon? Don’t Take the Risk Blindly”, CEO D. Harshavardhan Reddy stressed that bank loan approval does not guarantee the legal safety of a property.

Reddy highlighted a common misconception: “People assume that if a bank is willing to give a loan, the property must be legal. That assumption is dangerous.” He explained that banks and NBFCs often approve loans based on buyer indemnity, leaving buyers fully responsible for disputes over land title, approvals, or regulatory violations.

The webinar warned about pre-launch offers and ‘too-good-to-be-true’ deals, noting that unapproved projects often suffer from missing layout permissions, unclear land titles, and absence of guarantees. 

Citing Hyderabad’s recent demolition drive, Reddy emphasized the financial and legal risks buyers face when investing in unverified properties.

Reddy underlined the importance of RERA registration for all projects with more than eight units. He explained that RERA safeguards 70% of customer funds in escrow accounts, ensures builder accountability, and provides legal protection in case of delays, fraud, or quality issues.