Introduction
Bengaluru, the bustling metropolitan city in India, offers numerous real estate market development opportunities. As one of the most important destinations for developers across the country, Bengaluru’s real estate market is regulated and managed by RERA Karnataka. RERA, short for Real Estate Regulatory Authority, was established to execute the Real Estate Regulatory Authority Act 2016. Since July 5, 2017, the state government has been following the RERA Karnataka rules to bring financial discipline, transparency, and accountability to the sector while protecting buyers from unlawful practices.
Important Points under Karnataka RERA Rules
Under the RERA act, there are several key points that developers and buyers need to be aware of. These include:
1. Limitations on Advances: Developers cannot ask for more than 10% of the property’s cost as an advance before the sale agreement is signed.
2. Separate Bank Account: A minimum of 70% of the amount realized for the real estate project must be kept in a separate bank account within 15 days. This amount should be used exclusively for construction costs.
3. Submission of Original Documents: Builders are required to submit all the original documents for their projects. No changes can be made to the original plan without the consent of the buyer.
4. Selling Based on Carpet Area: Developers must sell the property based on the carpet area and not the built-up area.
5. Compensation for Project Delays: In case of project delays, buyers are entitled to either a refund of their invested money or returns on the invested money from the developer.
6. Responsibility of the Developer: The builder is responsible for addressing any issues related to the project up to five years after the purchase. Furthermore, any issues must be rectified within 30 days of the complaint.
7. Mandatory Registration: Developers cannot advertise, sell, or build without registering with RERA Karnataka. The unique project-wise registration number provided by RERA Karnataka must be displayed in all advertisements.
The Registration Process for Project Registration in Karnataka RERA
The registration process for project registration in RERA Karnataka is as follows:
1. Visit the RERA Karnataka website.
2. Click on the “Project Registration” tab and proceed.
3. Read all the documents before proceeding with the registration.
4. Provide all the required information and upload the necessary documents.
5. Make the payment through the online payment gateway.
6. Download the acknowledgment and note down the reference number.
7. Complete the registration process and generate the acknowledgment number.
List of Documents to be Submitted to RERA Karnataka after Project Completion
After completing a project, developers must submit the following documents to RERA Karnataka:
1. NOC from the Fire Services Department.
2. Consent of the pollution control board for operation.
3. Escom’s sanction letter for electrical connection.
4. BWSSB certificate for the treatment plant’s working status.
5. Detailed information about external infrastructures such as gardens, water supply, playing areas, and driveways.
6. Details of the transformers installed.
RERA Karnataka Charges & Fees for Project Registration
The charges and fees for project registration in RERA Karnataka are as follows:
Group Housing Projects:
– Proposed land area for development is less than 1,000 square meters: Rs 5/sq. m.
– Proposed land area for development is more than 1,000 square meters: Rs 10/sq. m (maximum Rs 5 lakhs).
Commercial Projects:
– Proposed land area for development is less than 1,000 square meters: Rs 20/sq. m.
– Proposed land area for development is more than 1,000 square meters: Rs 25/sq. m (maximum Rs 10 lakhs).
Mixed Development (Commercial & Residential) Projects:
– Proposed land area for development is less than 1,000 square meters: Rs 10/sq. m.
– Proposed land area for development is more than 1,000 square meters: Rs 15/sq. m (maximum Rs 7 lakhs).
Plot Development Projects:
– Rs 5/sq. m of the complete project area. The maximum fee is Rs 5 lakhs.
The Registration Process for Agent Registration in Karnataka RERA
Real estate agents in Karnataka are also required to register their businesses with RERA Karnataka. The registration process for agent registration is as follows:
1. Visit the RERA Karnataka website.
2. Click on the “Agent Registration” tab and proceed.
3. Select the agent type (individual or company) and enter the email ID.
4. Fill in all the details of the applicants and upload the necessary documents.
5. Preview the filled details and proceed to the payment gateway.
6. Make the payment through the online payment gateway.
7. After successful payment, note down the reference number and generate the acknowledgment number.
RERA Karnataka Fees & Charges for Agent Registration
The fees and charges for agent registration in RERA Karnataka are as follows:
– Individual Agent: Rs. 25,000
– Business Entity: Rs. 2 lakhs
Complaint Filing on RERA Karnataka Website
Buyers and investors can file complaints against developers or real estate agents on the RERA Karnataka website by following these steps:
1. Visit the RERA Karnataka website.
2. Click on the “Complaint Registration” tab and proceed.
3. Log in using the provided credentials or register as a new user.
4. Fill in all the necessary details in the complaint registration form.
5. Preview the filled form and make the online payment for complaint registration.
6. RERA Karnataka accepts payment only through e-payment.
7. After successful payment, a complaint number will be generated for tracking the status of the complaint.
Reporting of Unregistered Projects to RERA Karnataka
Buyers and investors can report unregistered projects to RERA Karnataka by following these steps:
1. Visit the RERA Karnataka website.
2. Click on the “Unregistered Projects” section.
3. Choose the option to report an unregistered project.
4. Fill in the required details, such as the project name, promoter’s name, project address, and any other relevant information.
5. Upload any related documents if available.
6. The reported unregistered projects will be investigated by RERA Karnataka authorities.
The Latest News on Karnataka RERA
Some of the latest news on Karnataka RERA includes:
1. Judicial Powers for RERA: A proposal is being drafted to grant judicial powers to RERA Karnataka, allowing it to execute its orders and resolve buyer-builder disputes internally.
2. Investigation of Delayed Projects: RERA Karnataka is investigating developers of 512 delayed projects who have not applied for extensions as per the RERA rules. Non-compliance with the rules may result in penalties of up to 10% of the project cost.
Conclusion
With the establishment of RERA Karnataka, the real estate sector is experiencing positive changes in terms of transparency and accountability. Buyers can now feel safer and more assured of timely project deliveries. RERA Karnataka provides a platform for resolving buyer-developer disputes efficiently. With the digitization of processes and a dedicated portal, there is higher transparency and better project tracking, eliminating many of the hassles faced by buyers in the past.
Frequently Asked Questions (FAQs)
Q: What will happen if a developer or an estate agent violates RERA Karnataka rules?
A: Developers can face a prison sentence of up to 3 years, while real estate agents can face a prison sentence of up to 1 year if found guilty of violating RERA Karnataka rules.
Q: What is the minimum size of the plot for projects to be registered with RERA Karnataka?
A: As per the RERA Act 2016, projects with a plot size of a minimum of 500 sq. m or a building with 8 apartments must be registered with RERA Karnataka.
Q: If a builder plans a project in multiple phases, is it okay to register the project once?
A: Each phase of a project is considered a stand-alone project, so the builder must register each phase separately with RERA Karnataka.
Q: Can the project registration be revoked after approval from RERA Karnataka?
A: If the developer violates RERA rules or if there are complaints from buyers during the project, RERA Karnataka has the authority to revoke the project registration.
Note: The information and fees mentioned in this blog may be subject to change. For the most accurate and up-to-date information, please refer to the official RERA Karnataka website.
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