Developers often use attention-grabbing tactics to lure customers and promise more than they can deliver. Before the implementation of RERA, this resulted in a rise of misleading advertisements which led to homebuyers losing faith in the real estate market. To bring this into check and keep dubious developers from defrauding innocent homebuyers, Karnataka RERA put into practice a set of rules and guidelines governing advertising and marketing. These guidelines are aimed at ensuring transparency, fairness, and accountability in the sector while safeguarding the interests of homebuyers and investors.

In this article, we will take a deep dive into the rules and regulations regarding advertising and marketing to help homebuyers make an informed decision.

Before we understand the rules and regulations regarding advertising, let us take a brief look at what K-RERA is

What is Karnataka RERA?

The Karnataka Real Estate Regulatory Authority (K-RERA) was established in 2017 to oversee the state's real estate sector's operations. It operates following the provisions of the RERA Act.

The Real Estate Regulatory Authority (RERA) Act 2016, is a set of legal rules in India that aims to protect homebuyers' interests and regulate the real estate sector. The framework has laid down guidelines for real estate developers, and promoters and ensures homebuyers have transparency during property transactions. The RERA Act also empowers homebuyers with a mechanism for resolving disputes thus ensuring fair practices and accountability.

Also Read:Enhancing Transparency: Additional Disclosures for Ongoing Real Estate Projects under Karnataka RERA

Key RERA Guidelines on Advertising and Marketing

Adherence To Truthful Advertisement

K-RERA mandates that all advertisements and marketing material related to real estate projects must be truthful, accurate, and not misleading. This includes providing precise details about the project, such as its location, amenities, specifications, approvals, and completion timelines.

Registration of Projects Mandatory Before Advertising

Before advertising or marketing any real estate project, developers are required to register their projects with K-RERA. No developer can advertise without obtaining the necessary approvals. Only after obtaining the necessary approvals and registration can developers promote their projects through various mediums.

Display of RERA Registration Number

Karnataka RERA mandates that every advertisement or communication related to a registered project should display the RERA registration number of the project. This is done to help potential homebuyers and investors to verify the project's authenticity on the K-RERA website. Every advertisement or communication related to a registered project must prominently display the project's RERA registration number. This is crucial for potential buyers or investors to verify the project's authenticity on the K-RERA website.

No Misleading Information

Developers and agents are prohibited from providing misleading information or using false statements in their advertisements or promotional materials. Any claims regarding the project's amenities, approvals, or completion timelines must be backed by concrete evidence and accurate documentation.

Transparent Pricing and Disclosures

Advertisements must mention the project's total price, including additional charges such as maintenance fees, taxes, and other expenses. Any discounts or offers should be transparently presented without ambiguity.

Approval of Advertisements

All advertisements and promotional content related to real estate projects must be approved by the developer or the advertising agency before publishing or broadcasting. This is to ensure compliance with K-RERA guidelines.

Online Advertisements and Social Media

In the digital age, online advertising and social media have become integral to marketing strategies. K-RERA states that digital portals that act as real estate agents are also required to comply with Authority regulations.

How Does RERA's Advertising and Marketing Guidelines Help Homebuyers?

Karnataka RERA's guidelines on advertising and marketing in the real estate sector play a pivotal role in promoting transparency, protecting consumers' interests, and fostering a fair marketplace for both developers and buyers.

The goal of these regulations is to ensure that homebuyers have access to accurate information and can make informed decisions while investing in real estate projects. Adhering to these guidelines not only benefits consumers but also contributes to the overall credibility and stability of the real estate industry in Karnataka.

Ensures Accuracy and Transparency

The RERA guidelines make it compulsory to only advertise accurate information which helps homebuyers to be sure that they are going to get reliable data about the property they are looking for. Along with this, displaying the RERA registration number prominently in advertisements enables buyers to verify project details, ensuring the project is legitimate and registered with the regulatory authority.

Gives Protection from Misinformation

The guidelines prohibit developers and agents from providing false or misleading information. This protects buyers from falling prey to exaggerated claims or deceptive practices. Further, as mentioned by RERA, advertisements must include comprehensive details about the property's total cost, including additional charges. This transparency helps buyers understand the complete financial implications of their purchase.

Improves Accountability

Mandatory project registration ensures that developers adhere to specified timelines and project details disclosed during advertising. This holds them accountable for delivering what was promised. Advertisements approved under these guidelines provide legal backing. In case of disputes or discrepancies, buyers can refer to these advertisements as official representations of the project details.

Empowers Informed Decision-Making

By adhering to the guidelines, developers, and agents provide comprehensive information about the project's amenities, location, legal status, and completion timelines. This empowers buyers to compare and make informed choices. The guidelines extend to digital platforms, ensuring that information about projects available online is accurate. Buyers can cross-check details on RERA websites, adding another layer of verification.

Overall Consumer Confidence:

Strict adherence to advertising guidelines fosters a sense of trust and confidence among homebuyers. They feel assured that the information presented in advertisements is reliable and regulated by the state authority thereby reducing risks associated with real estate investments.

In essence, Karnataka RERA's advertising guidelines act as a safeguard for homebuyers, providing them with accurate, transparent, and trustworthy information, thereby empowering them to make well-informed decisions while purchasing property.