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Writer's pictureThota Devaraju

RERA Karnataka: Transparency, Accountability, and Empowerment in Real Estate

Updated: Sep 28

Introduction

The Real Estate Regulatory Authority (RERA) Karnataka portal, developed under Section 4(3) of the RERA Act, 2016, stands as a beacon of transparency and accountability in the real estate sector. Spearheaded by the Department of Housing, Government of Karnataka, this initiative aims to streamline real estate transactions and protect the interests of homebuyers.

The Genesis of RERA Karnataka

With all sections of the RERA Act coming into force on May 1, 2017, Karnataka quickly adopted the Karnataka Real Estate Regulation and Development Rules, 2017, notified on July 10, 2017. This move underscored the state's commitment to fostering a transparent, efficient, and trustworthy real estate market.

Understanding the RERA Act

The Real Estate Regulation and Development (RERA) Act, 2016, is a landmark legislation aimed at reforming India's real estate sector. It emphasizes transparency, citizen-centricity, accountability, and financial discipline, aligning with the country's economic growth and the increasing real estate investments.

Salient Features of the RERA Act, 2016

Establishment of Regulatory Authorities

  • Creation of Real Estate Regulatory Authorities in each State/UT for oversight of real estate transactions.

  • Appointment of adjudicating officers to settle disputes and impose penalties.

Registration of Projects and Agents

  • Mandatory registration of real estate projects and agents with the Regulatory Authority.

  • Public disclosure of project details, including promoter information, layout plans, development works, and statutory approvals.

Duties and Obligations of Promoters

  • Comprehensive disclosure of project-related information.

  • Adherence to approved plans and project specifications.

  • Obligation to rectify structural defects within two years of possession.

  • Provision for refunds in case of defaults.

Financial Discipline

  • Compulsory deposit of 70% of the amounts realized from allottees in a separate bank account to cover construction costs.

Role of Real Estate Agents

  • Sale of properties registered with the Authority.

  • Maintenance of books of accounts and records.

  • Prohibition of unfair trade practices.

Rights and Duties of Allottees

  • Right to obtain stage-wise time schedules of project completion.

  • Claim possession as per promoter declarations.

  • Right to refunds with interest for promoter defaults.

Functions of the Regulatory Authority

  • Enforcement of the Act’s provisions.

  • Coordination of development efforts in the real estate sector.

  • Providing advice to the government to promote transparency and efficiency.

Fast Track Dispute Settlement and Appellate Tribunal

  • Establishment of a fast track dispute resolution mechanism through adjudicating officers.

  • Formation of a Real Estate Appellate Tribunal to hear appeals from the Authority and adjudicating officers.

Punitive Provisions

  • Penalties and de-registration of projects in case of contravention of the Act’s provisions or orders.

Key Components for Promoters, Agents, and Buyers

For Promoters

Promoters must submit detailed project information for registration, including financial statements, legal title deeds, and development agreements. Ongoing projects without a completion certificate must register with the Regulatory Authority and deposit 70% of the amounts realized from allottees in a separate account.

For Real Estate Agents

Agents must provide enterprise details, registration particulars, and personal identification documents for registration. This ensures that only credible agents operate in the market.

For Buyers

Buyers can now access real-time updates on project statuses and litigations, ensuring informed decision-making. The Act empowers consumers to voice grievances and lodge complaints against defaulting promoters or agents, with a nominal fee for filing complaints.

Establishment of RERA and Appellate Tribunal in Karnataka

The Interim Real Estate Regulatory Authority was established on July 14, 2017, functioning until March 6, 2019. The regular Karnataka Real Estate Regulatory Authority commenced operations on March 7, 2019. Similarly, the Karnataka Real Estate Appellate Tribunal was established to address appeals, ensuring a robust framework for dispute resolution.

Conclusion

RERA Karnataka embodies a transformative step towards a transparent and accountable real estate sector. By fostering a regulated environment, it ensures that homebuyers, promoters, and agents operate within a framework of trust and efficiency. For more information and to access services, visit the official RERA Karnataka portal and join us in building a transparent real estate market. More Details 👉 https://rera.karnataka.gov.in/

RERA Karnataka

Best Regards,

Eco Space Realtors Team

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Disclaimer:

The information provided in this blog post is for general informational purposes only. It should not be taken as professional advice. Before making any decisions based on the information provided, please consult with a professional or specialist. We strive to provide accurate and up-to-date information, but we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog post or the information contained in it. Any reliance you place on such information is therefore strictly at your own risk.

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