Karnataka RERA is one of the most active real estate regulatory bodies in India. K-RERA gives you, the citizen, the liberty to check real estate projects’ compliance online. The Real Estate (Regulation and Development) Act, 2016 (RERA) makes it easy for agents, buyers, and developers to register real estate online.
This article will deal with everything you need to know about RERA full form Karnataka – the complaint project of real estate, how to check the lists of the compliance and registered brokers of RERA, provisions, benefits, etc.
First Things First; What Is RERA Karnataka Of Real Estate Sector?
The RERA Karnataka is one of the active bodies in India that came into force on 1st May 2017. The RERA projects give an individual the liberty to file a complaint or even check for compliance of RERA registered projects, virtually.
To be specific, Karnataka.RERA is the second most active RERA body after Maharashtra that was successful in implementing the Real Estate Regulation (RERA) Act. The body made further implementations for the ease of all agents and homebuyers by launching the online portal, useful for registering and filing complaints.
In March 2016, with the consent of houses of the parliament, the Real estate (regulation and development) act took action in approximately 19 states and union territories of the country. These include:
- Andhra Pradesh
- Uttar Pradesh
- Madhya Pradesh
- Andaman & Nicobar Islands
- Daman and Diu
What are The Benefits of RERA?
RERA holds certain benefits for the buyers in the market. Here are the 5 benefits of RERA:
1. Transparency in The Dealings
Under the RERA Act, builders need to maintain total transparency while selling a property about every minor and major aspect. They also need to provide a pamphlet with these details and update the same on their real estate website. The buyers need to be informed about the stage-wise completion of the project, the plan layout and its execution.
2. Builder Cannot Charge for Excess Area
Buyers are exempted from paying excess for super built-up area and built-up area. They only need to pay for the carpet area of the property which includes, the balcony, the stairs, the lobby, the elevator, and other such common areas. The developers need to have the consent of the buyers while making any changes to the project design.
3. Project Delays are Prohibited
Under the RERA Act, the project needs to be completed within the deadline and defaulting builders will have to pay an interest rate of 2% above the lending rate. The lending rate is offered by the State Bank of India, India’s largest nationalised bank. On defaulting, builders could also face a jail time of 3 years.
4. The Building Should be Devoid of Defects
RERA lays importance on the quality of construction. It states that a building should be free of defects for a minimum period of 5 years after the buyer has taken possession of the house. In case of defects, the builder must fix them with no charges involved within a 30 day period of intimation.
5. Builders Cannot Use Your Money for Projects Other Than Yours
Under the RERA Act, the builders need to deposit 70% of the sum from the buyers into a separate account. This money can be withdrawn from the account after being approved by the builders’ chartered accountants as well as engineers. Also, the builders can ask for an advance of less than 10% of the total cost of the property before the sale agreement is drafted.
RERA Karnataka - RERA Compliant Projects in Karnataka
RERA has been successfully implemented by the Karnataka Government Department of Housing with the help of the regulatory body of the state. They made an effort to ease the registration process via the online portal that is now used actively to report any violation, leading to immediate strict action by the regulatory body.
As per the updated data that was published online, it has received more than 2771 RERA registration projects with 2193 RERA-approved projects. On the other hand, more than 1472 property agents have been able to send their applications with 1159 already approved by the regulatory body. Adding on, there are more than 163 upcoming developmental project applications, which, unfortunately, got dismissed by the regulatory authority.
RERA Karnataka Website: Steps to Check The Compliance of a Project
Now, you can check the compliance of any Karnataka project in the RERA website with the click of a few keys. Listed below are the ways that would help an individual check the compliance of a project via the RERA Karnataka website:
- Log into the official website of Karnataka.RERA
- Once you log in, click on the projects and select the “Processed Application”
- Now, click on “Application Approved.”
- Once done, a list of RERA registered projects will appear on your screen
- Now, type the name of the project on the search tab in question
- When you get the report, download the report and get the RERA project details, such as the locality, possession completion date, etc.
RERA Karnataka: Steps to Check If An Agent/Broker is Registered
- Visit the RERA Karnataka website
- Now, select the “Agent” option from the main menu
- Next, you’ll be redirected to the “List of All Agents” and “List of Approved Agents”
- In the search tab, type in the “Agent Name”
- Once you get the required name, download the file and get the RERA project details.
RERA Karnataka: Cost of Registering a Project
The registration fee of a project depends on the type of development of the project. For instance,
- You will need a fee of ₹5 per square metre for a group housing project with a developed area of not more than 1000 square metres.
- You will need a fee of ₹10 per square metre for a group housing project with a developed area of more than 1000 square metres, subject to a maximum of ₹5 lakh.
- For plotted development projects, the fee will be ₹5 per square metre which is subject to a maximum of ₹2 lakh.
Can We File A Complaint On Karnataka RERA Portal? If Yes, How?
Yes, you can. The purpose of the RERA Karnataka website is to help the homebuyer and agents to either register or complain about any RERA registered project.
In case a homebuyer and a builder are delaying your project that isn’t in compliance with RERA Act, you can choose to file a complaint on the Karnataka RERA portal. Here’s how:
- Log in to the official website
- Click on “Registration”
- Select “Complaint Registration”
- Enter your personal information – complaint details, respondent details, supporting documents, etc
- Once done, in order to complete and register the complaint, you would be required to pay Rs 1,000 using the online payment method
- Once done, you’ll receive an acknowledgment number/complaint number, in case you must log in and check in the future
Note: Any RERA registered project complaint will take up to 60 days to get resolved, that is from the date of filing by K-RERA.
Can The Regulatory Authority Revoke The Project Registration?
The real estate regulatory body can receive complaints against the developers on the RERA Karnataka website. Once the complaint is verified that the builders or promoters have not complied with the provision of the RERA Act, these authorities can revoke the registration. The promoters or builders have to follow the regulations and rules stated in the act otherwise they are found guilty of unfair trade practices.
What Are The Provisions Of The RERA Karnataka Act:
- The Real estate regulation and development Act covers all the upcoming and under-construction developmental projects
- About 70 % of the total amount paid by the home buyer is pledged by the developer into separate project accounts. The withdrawals of which would be monitored by the authority.
- The residential developer or the developmental project must be registered with the authority before selling or advertising the project in question
- Carpet area is the basic criteria to regulate the sale of apartments
- It is mandatory to receive a majority vote from the home buyers or residents for a change in the project
- When selling the RERA registered project, discernment or differentiation will not be tolerated
- The developers and the customers are entitled to pay any penalty if there is any delay caused
- In case of any fraud or violation of the RERA Karnataka Act, rigid penalties and punishments will be propounded
What Are The Punishments And Penance On Violation of The RERA Act In The Real Estate?
- In case a developer doesn’t get their project registered with the RERA Karnataka, there would be imprisonment of 3 years or a penalty of 10% of the amount of the developmental cost. This is to be fulfilled under the Real estate development authority within a span of three months
- If any false data is registered, the developer shall be penalized and will be asked to deposit 5% of the total project amount
- If a developer leaves the registration at an unsuccessful stage, then the property agent would lead to a fine of Rs.10000 per day or with 5% equity of the total project cost
- In case of any violation of a RERA guideline, the developer or the property agent is liable to pay about 5% of the total cost of the project as a penalty
- If there is any denial to the orders of the RERA, a developer and the agent will result in paying a penalty of 5% of the project cost
To Conclude: Why Should An Individual Register With The RERA Karnataka?
- Any fund that is deposited by the developers in the “seperate project account,” safeguards the interests of the home buyers and ensures the right use of the money
- Due to the RERA Karnataka Act, it has become rather mandatory for the developers to submit only correct and authentic information about the project. This prevents any case of false representations and real estate frauds
- The RERA Karnataka website helps protect the home buyers from being victims of paying an extra developmental cost to the construction companies
- The regulatory mechanism of the RERA Act helps the developers from any delay in payments and also ensures no delay in the construction process by the developers too