Know All About Karnataka RERA
Being one of the most remarkable rest estate markets in India, Bengaluru has a dire need for a regulatory authority. This lead to the formation of the Karnataka Real Estate Rules-2017 and the Karnataka Real Estate Regulatory Authority (KRERA) by the state cabinet. While, the main aim of this institution is to promote transparency, financial discipline, and accountability, the authority is also responsible to protect the rights of the homebuyers to prevent wrongdoings in the real estate sector. According to RERA Karnataka rules, every ongoing project has to be registered with Karnataka RERA by the real estate agent.
This article will help you understand what RERA is, how it works, and how it could change the way you make your home-buying decisions.
What is RERA Act?
To completely understand the RERA Act in Karnataka, it’s important to understand the RERA act first. The RERA act was first brought into action to reform the country’s real estate fragment, to promote transparency by making it more citizen-focused, improving financial discipline, and increasing accountability.
The act includes 92 sections and was enforced in 14 states across India, including Karnataka. RERA Karnataka is the official portal for the Real Estate Regulatory Authority Karnataka and was designed under section 4.3 under Real Estate Regulatory Authority Act in 2016, which includes residential and commercial projects.
RERA Karnataka rules
RERA Karnataka abides by certain rules and regulations that are to be followed by the home buyers and the sellers.
- The sale of the property should be established on the carpet area and not the super-built area.
- Builders shall keep 70% of the payment they receive from the home buyers in an account used for construction purposes only.
- Project updates and details should be regularly uploaded on the websites by developers.
- All project plans should mention the changes and alterations in the project and need to be submitted to RERA (Karnataka Real Estate Regulatory Authority).
- In case of delays, the developers and buyers have to pay an interest rate of 2% over the bank’s marginal cost of leading rate.
- Keep in mind that any kind of violation in the RERA Act Karnataka will result in 1-year imprisonment for agents and buyers and 3 years in jail for developers.
- In case of damage to the property during the first 5 years, a solution needs to be met within 30 days.
- Developers can ask for only 10% of the project cost as an advanced payment before signing the registered sale contract.
- Buyers are allowed to point out any shortcomings in writing up to one year after possession.
Benefits of homebuyers in Karnataka through RERA
- Homebuyers can see the progress of the project construction on the site.
- As buyers are not charged for the built-up area like lifts, staircases, and so on, it’s beneficial for the buyers.
- Projects have a lesser chance of being delayed as 70% of the payment is used for construction fees.
- The developers are responsible for defects in the building for up to 5 years.
- In case of conflict with the buyers, it needs to be solved within 120 days.
- If there are delays, the developers and buyers must pay an interest rate of 2% over the marginal cost of the leading rate.
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Also, Read: A Complete Guide to Online Property Registration in India