The real estate sector in Karnataka has witnessed a transformative shift with the implementation of the Karnataka Real Estate (Regulation and Development) Act, commonly known as Karnataka RERA. This legislation aims not only to regulate the sector but also to safeguard the interests of homebuyers and sellers to ensure transparency and accountability in the real estate market.

One of the primary objectives of RERA is to ensure that all promoters get their real estate projects registered under the Act. A lot of information is widely available about the information and documents required to get new projects registered under Karnataka RERA, but what about those projects that are already undergoing construction?

In this aspect, Karnataka RERA has a mandate where promoters also have to get under-construction or ongoing projects registered with the regulatory body. These disclosures go beyond the basic project information and serve as a significant step towards enhancing transparency and empowering both homebuyers and Promoters with comprehensive insights.

In this article, we look into the additional disclosures set forth by Karnataka RERA for ongoing real estate projects, so that you as a homebuyer are armed with all the information required to make an informed decision.

Now, before we dive deeper into the disclosures, let us have a clear understanding of

How RERA defines an 'ongoing project'.

According to RERA law, an 'Ongoing project' means a project where development is going on and for which a completion certificate has not been issued. However, it excludes those projects that have any of the below-mentioned criteria

1) In respect of project layouts where the streets Civic Amenities sites and other services have been handed over to the Local Authority and Planning Authority

2) Apartments, where common areas and facilities have been handed over to the registered association consisting of the majority of allottees

3) Projects, where all development works have been completed as per the Act and certified by the competent agency and sale/lease deeds of 60% of the apartments/houses/plots, have been registered and executed.

4) Projects, where all development work has been completed as directed by the act and certified by the competent authority and application, has been filed for occupation/completion certificate

5) If a project has received a partial occupancy certificate

Now that we know what exactly RERA defines by an Ongoing Project, let us see the disclosures that promoters are required to put forth for registration of an ongoing project.

Details of the Project Required During Project Registration:

• Name, location, and address of the project.
• Type of project (residential, commercial, mixed-use, etc.).
• Proposed timeline and completion date of the project.
• Proposed land usage and area calculations.

Details of the Promoter Required During Project Registration:

• Personal details of the promoter(s) including name, address, contact information, and any relevant identification (such as PAN card, Aadhaar card, etc.).
• Background information, including past project experiences if applicable.
• Any affiliations or partnerships related to the project.

Financial Information Required During Project Registration:

• Project cost estimation.
• Sources of funding and financial viability of the project.
• Financial statements and details of bank accounts associated with the project.
• Legal and Compliance Information Required During Project Registration:
• Title deed and ownership documents of the land where the project will be developed.
• Environmental clearance certificates.
• Any other permissions or clearances required from local authorities.

Architectural and Technical Details Required During Project Registration:

• Building plans and blueprints approved by relevant authorities.
• Details of the architect, contractor, and other key personnel involved in the project.
• Specifications regarding construction materials and techniques.

Sales and Marketing Information Required During Project Registration::

• Proposed sales strategy for the project.
• Details of marketing plans, including advertisements and promotional materials.
• Other Relevant Information:
• Any additional information required by regulatory bodies or local authorities.

Documents Required To Be Submitted During Project Registration

• Title Deeds and Ownership Documents:
• Sale deed or lease agreement for the land.
• Encumbrance certificate ensuring there are no pending liabilities on the property.

Approvals and Clearances:

• Environmental clearance documents.
• Approval from local development authorities or municipal corporations.
• No Objection Certificates (NOCs) from relevant departments.

Financial Documents:

• Project cost estimation and financial feasibility report.
• Bank statements and proof of funds.
• Architectural and Technical Documents:
• Approved building plans and blueprints.
• Details of architects, engineers, and contractors involved.
• Specifications of construction materials and methods.

Promoter's Personal Documents:

• Identification documents (PAN card, Aadhaar card, etc.).
• Personal financial statements if required by regulatory bodies.

Sales and Marketing Documents:

• Proposed sales agreements or contracts.
• Marketing plans and promotional materials.
• Additional documents specific to regulatory requirements or local laws.

Additional Disclosures That Are Required For Ongoing Project

The disclosures required for ongoing projects under Karnataka RERA encompass various crucial aspects. From the project status and financial details to changes in plans and consent from existing allottees, each disclosure serves a specific purpose.

1) Project Status: Offers clarity on the current stage of the project, allowing buyers to gauge progress accurately.

2) Financial Disclosures: Provides insights into the project's financial health and potential risks, aiding buyers in assessing the project's viability.

3) Changes in Plans or Amenities: Ensures buyers are aware of any alterations from the original offerings, preventing misunderstandings or disputes.

4) Consent of Existing Allottees: Upholds the rights of existing buyers by involving them in decisions related to project alterations.

5) Total Money Collected From Allottees: This is to ensure that the money collected from the allottees is used in the right way. Not only does the promoter have to disclose the total amount collected from the allottees but also the total money used for the development as well as the balance money the promoter has.

6) Disclose Size of Carpet Area: The promoter has to disclose the true size of the carpet area even if the promoter has sold flats to allottees based on super area, super built-up area, built-up area etc.

7) Disclose Plot Size: If the land sold is a plotted development, then the promoter has to disclose the area of the plot being sold to the allottees as per the layout plan.

The additional disclosures mandated by Karnataka RERA for ongoing real estate projects serve as a cornerstone for transparency and accountability in the industry. These disclosures empower homebuyers to make well-informed decisions, safeguarding their interests, while also encouraging Promoters to maintain compliance, accountability, and credibility in the real estate market.

How do these disclosures help Homebuyers?

For homebuyers, these additional disclosures act as a beacon of transparency in what can often be a confusing and daunting process. The detailed information and documents that Promoters have to furnish to get registration under Karnataka RERA offer potential buyers a clearer understanding of ongoing projects. This includes the current status of construction, any modifications in plans or amenities, financial details, and crucially, any delays and the reasons behind them.

Having access to such comprehensive information empowers homebuyers to make informed decisions. It allows them to assess the progress of the project, understand potential timelines, and be aware of any deviations from the initial promises made at the time of booking. This transparency mitigates risks and uncertainties, enabling trust between buyers and Promoters.

How do these disclosures help Promoters?

As mentioned earlier, RERA is not just a law to safeguard the rights of homebuyers but also looks after sellers. For Promoters, these additional disclosures serve as a platform to reaffirm their commitment to transparency and accountability. By providing detailed information about ongoing projects, promoters demonstrate their willingness to comply with the regulatory framework, maintaining trust with existing buyers and attracting potential ones.

Moreover, these disclosures enable Promoters to showcase their adherence to the guidelines set by Karnataka RERA. It highlights their efforts to rectify any delays, financial considerations, or alterations in plans, thereby ensuring compliance and avoiding penalties or legal implications.

Armed with this set of information, we believe you as a homebuyer will easily be able to navigate the often confusing landscape of the real estate market.