If you have ever tried to buy a home in Karnataka or are trying to buy a home in Karnataka, you have or will come across the RERA Karnataka, which is the Real Estate Regulatory Authority Karnataka. If you don’t understand what RERA Karnataka is, we are going to explain it in this article. Let’s see what the RERA Act is all about.
What is the RERA Act?
The RERA (Real Estate Regulatory Authority) Act was introduced to reform India’s real-estate segment with the goal of increasing transparency in the real-estate space, making it more citizen-focused, boosting financial discipline, and reinforcing accountability.
The Act was enforced in 14 states with its 92 sections. RERA Karnataka was modelled under section 4.3 of the RERA Act in 2016, including commercial and residential projects.
Key Functions Provided by RERA Karnataka
- A property has to be sold on the basis of carpet area and not the super-built area.
70 percent of the money received by the builder from the home buyer must be kept in a different account for construction purposes only. - The project updates must be regularly uploaded on the developer’s website.
The updates must contain the alterations and changes done to the project and submitted to RERA Karnataka. - The buyers and developers have to pay a 2 percent interest rate over SBI’s maximum rate Marginal Cost.
- If the buyers and agents are found in any violation of the RERA Act, it will result in 1-year imprisonment.
- If the property is damaged during the first five years, it needs to be solved within 30 days.
- Before the developers sign the registered sale contract, they can only ask for 10 percent of advanced payment for the project cost.
- Buyers can complain about any flaws in writing after one year of possession.
Benefits of RERA for Homebuyers in Karnataka
Source: Housing
Home buyers get to see the progress of their homes on the website.
Buyers are only charged for the carpet area and not for the super-built area, which means they don’t have to pay for staircases, lifts, and more.
Since 70 percent of the payment will be used for construction fees, there are fewer chances of the project being delayed.
The developer will be responsible for any flaws in the construction for up to 5 years.
If there’s any conflict with the buyer, it has to be solved within 120 days.
In case the project gets delayed, the buyers and developers have to pay a 2 percent interest rate over the SBI’s maximum rate Marginal Cost.
The Process of RERA Registration for Agents in Karnataka
According to this act, the registration fee for real estate agents is Rs. 2 lakhs for Karnataka’s RERA registration. However, if you are an individual, you have to pay Rs. 25,000. These are the documents and the information, that all real estate agents must provide while registering:
- Information about the agency such as its name, address, type of business, partnerships, and societies.
- They have to provide the agency’s registration information such as MUA, MOA, and other by-laws.
- If the agent works alone and is not associated with any agency, they must provide
- information such as name, address, and contact information.
- Information about the agency’s partners is needed
- Pan Card photocopies with signature
- Address proof of business with signature
Online Registration Process for RERA Karnataka
- Visit RERA Karnataka’s Portal at rera.karnataka.gov.in/home
- Click on “Register” from the drop-down menu on the homepage
- You’ll see five options: Complaint Registration/Project Registration/Change
- Request/Apply for Extension/Post Registration and Quarterly Update.
- There’s going to be a checklist so make sure you have all your documents with you.
- The next page will have options for you to choose the promoter type: Societies or
- Individual or Partnerships Firm Company or Development Authority or Trust Agents.
- Next, you will be asked to enter your email address.
- Continue the registration process
If you want to check on the progress of your project, here are the steps:
- Under the project list, you’ll see the option of processing applications
- Next, you’ll see six options.
- Choose “Applications Approved”
- In the search bar, enter the name of your project. After it appears, download the file, and you’ll be able to see the updates.
Note: If you want to contact RERA Karnataka, the number is 080-22249798, 22249799.
If you want to file a complaint to RERA Karnataka, the application fee is Rs. 1,000 and if you want to file a complaint to Appellate Tribunal, the price is Rs. 5,000. Also, keep in mind that you have to fill out form “N” and pay a Demand Draft of Rs. 1,000. Here are the steps for filing a complaint:
- Go to the RERA Karnataka official website
- Next, go to the RERA Complaint registration portal
- Provide all of your details on the website
- Provide the respondent’s details
- Upload the document that supports your complaint
- Pay the amount and upload the challan
- Lastly, submit the complaint
After you submit your complaint, you get an acknowledgment number. Keep it in a safe place for future reference.
Final Thoughts
The RERA Act is an excellent initiative to promote transparency in the real-estate sector. It is more customer-focused and the home-buyers are going to benefit from it. Moreover, it alleviates a lot of pressure on the home buyer’s shoulders about fixing any flaws or damages to the property.
FAQs
1. Is RERA applicable in Karnataka?
Yes, RERA is applicable in Karnataka. It is applicable for Karnataka Housing Board Projects as well as the Bangalore Development Authority projects. The RERA Act was enforced in 14 states and Karnataka is one of them.
2. What if a project is not registered in RERA?
If an agent is unregistered and sells a property, they will be fined Rs. 10,000 every day until they comply with the law.
3. Is RERA approval mandatory for flats in Bangalore?
Yes, it is mandatory for flats in Bangalore. In fact, all commercial and residential real estate projects have to be registered under RERA in Karnataka. Also, consumers should only purchase RERA-registered properties.
