The emergence of the RERA Karnataka has significantly changed the landscape of the real estate sector in Karnataka. This regulatory body ensured accountability and transparency across the real estate industry.
This Act was established with the objective to offer home buyers the utmost security and enhance the overall amount of real estate investments. The RERA Act makes it mandatory for agents and developers to get registered, this eliminated the malpractices and fraud in the real estate sector. Homebuyers’ interest is secured now as they will only invest in registered projects and will access secure and unshakable investment sources.
RERA Karnataka
The government of Karnataka established the RERA official online portal in 2017 in accordance with the RERA act of 2016. The RERA Act intended to regulate the vast real estate market and eradicate fraudulent realty sector activities. This act approaches improving transparency in the industry as well as incorporating accountability, and financial discipline.
Responsibilities of RERA Karnataka
The Karnataka RERA was established with the following objectives:
To regulate the real estate sector dealings and to enhance the promotion mechanism across the state
To ensure transparency in the transaction of commercial and residential properties
To protect the homebuyer’s interest and promote real estate investments
To establish an Appellate Tribunal to provide speedy resolution to the consumers’ disputes
According to the Karnataka RERA, every residential and commercial project must be registered with RERA. Moreover, investors and homebuyers must ensure that they are investing in RERA-registered projects. The following are the reasons that make it mandatory to check the project whether is registered or not.
Projects which are not registered are considered illegal for investment. Moreover, buyers might have to face future consequences.
While filing a complaint for an unregistered project will also raise questions for you too.
Developers and promoters having unregistered property are liable to pay an applicable penalty and in extreme cases authorities consider imprisonment.
RERA Karnataka Provisions
Prior to investing in commercial and residential projects in Karnataka, you must get familiar with the RERA rules. Here is the list of critical rules that you must follow to avoid any hassle:
Developers are allowed to charge based on the carpet area instead of the super-built-up area.
Builders need to keep 70 percent amount of the received payment in a separate account. This amount is not permissible to use in other projects, as it can be used for only development and construction purposes.
Developers must disclose every detail related to the project on the Karnataka RERA Portal.
Developers are not permitted to make any changes to the project’s plan without the homebuyers’ consent.
Every small change, made in the ongoing project submitted to the K-RERA officials must include in the project plan.
Developers are liable to pay a penalty if he fails to deliver the project within the deadline.
Violation of RERA norms is subjected to imprisonment of one year for agents and buyers, while it might 3 years for developers.
The developer is responsible for five years from the date of selling the project to provide a resolution if any damage is found by the buyer in the property. The builder needs to fix the same within 30 days.
Builders can only ask for a maximum of 10 percent as advance payment from the buyers.
Buyers can make a complaint if the developer is failed to deliver the promised amenities and this has to be done within 1 year of possession.
Project registration process
As per the RERA Act, upcoming projects are required to get registered with state RERA. Here are the steps that you will need to follow in order to register for a project.
Log on to the official website of Karnataka RERA
Click on “Project registration” and you will be redirected to the next page
A dialogue box will appear encompassing a checklist of online procedures and required documents. Refer to it before moving further with the registration process
Now, fill out the application form and select the promoter type and enter your email address
Click on “Next” then fill in relevant details and submit it
Enter the project details and move forward to the document upload
Upload a scanned copy of your PAN card along with address proof and click on “Next” button
After uploading relevant documents select payment and pay applicable registration fee
Login to the portal to get the registered project list and determine their status in addition to other details such as promoter name, registration number, certification, etc.
Steps to register with RERA Karnataka
Follow the given steps to get registered with RERA by exploring the official RERA website Karnataka:
Log on to the official website of Karnataka RERA at rera.karnataka.gov.in
Click on the registration tab and a drop-down menu will appear
Now, you have to select from the following options; Quarterly update, project registration, Apply for extension, Project registration, and change request.
Refer to the checklist carefully and ensure that you have all the relevant documents handy
On the resulting page, you need to choose from the following options: Company/trust agents/societies/individual/partnership firm/development authority
Now enter your email address and proceed to register for the project
Steps for agent registration with RERA Karnataka
It is necessary for an agent to get registered with the RERA to facilitate any dealing of the real estate project. Here are the steps that you will have to follow while registering yourself as an agent under RERA.
Visit the official RERA Karnataka website
Click on the “Registration” tab
Now click on “Agent Registration” to go further with the agent registration procedure
Fill out the relevant details and email address and then click on next
In the next form enter the required details and click on “Next”
Now, upload the required documents and make registration payment after checking the filled details are correct
Required documents for registration
The following are the required documents that you will be required during the process:
Basic details about the agency like name, partnership information, business type, address of the business, etc
Registration details of the firm, including MOA, AOA, etc
In case the agent is an individual, further details like name, address, and contact details will be required. If an agency is involved, then information and a photograph of the Board of Directors are required
Self-attested copy of PAN card
Copy of address proof
Impact of Karnataka RERA
The emergence of the Karnataka RERA has helped the sector eliminate malpractice and fraudulent activities. It has forced developers to deliver on-hold projects before embarking on new projects. The market gradually becoming more favorable to buyers owing to easier payment models, an increase in accountability for developers, and better credibility. As proof of the effectiveness of the RERA act, Bangalore has become one of the most active residential markets over the last 2 years.
Benefits for homebuyers under RERA
The following are some of the benefits for the homebuyers associated with the RERA:
Homebuyers can access all the information related to the project such as the true carpet area of the project, price of the project, number of units in the project, etc by using the RERA portal
It restricts the developer to charge on the basis of super-built-up area, as they can only charge based on carpet area
RERA mandate developers to keep 70 percent of the received amount in a separate account and it can only be used for construction and development purpose.
The developers are responsible to fix any damage found within 5 years of possession
Any disputes between the developer and buyer must be resolved within 120 days
In the event of a delay in delivering the project, the developer has to pay an interest of 2% of the total cost of the project