Buying a home is a complicated process. Not only does it involve researching available properties, finding the perfect home loan, and completing the eons and eons of paperwork, but It is also paramount for homebuyers to have knowledge about the legal system that governs the real estate realm to ensure transparency, accountability, and fairness are maintained.

To make matters a lot easier for homebuyers, The Real Estate (Regulation and Development) Act (RERA) was put into effect in 2016, which has indeed brought a revolutionary change in the sector.

Be it buying a home in Mumbai, Delhi, or Karnataka, The RERA Act governs all the cities, however, each city has adopted its own version of the act. Karnataka, known for its vibrant culture and economic prowess, has embraced RERA with open arms, empowering both builders and buyers alike with a robust framework that guarantees transparency and efficiency.

In this article, we will take a deeper look at the salient features of Karnataka RERA, benefits for homebuyers, and access to grievance redressal, thereby ensuring a level playing field for all.

What is 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.

How Does Karnataka RERA help Home buyers?

Mandatory Registration of ProjectsOne of the fundamental features of Karnataka RERA is the mandatory registration of all real estate projects with a land area exceeding 500 square meters or those containing more than eight apartments. This stringent requirement ensures that every real estate project within the state falls under the regulatory purview, reducing the chances of unscrupulous activities.

Builder AccountabilityKarnataka RERA places the onus of transparency and accountability squarely on builders. They are required to provide detailed project information, including project plans, approvals, and financial statements, on the Karnataka RERA website. This empowers buyers to make informed decisions.

Advance DepositsBuilders are now required to deposit 70 percent; of the project's funds into a separate bank account, which can only be used for that specific project. This feature ensures that builders allocate resources correctly and do not divert funds to other ventures, thereby safeguarding the interests of homebuyers.

Timely Project DeliveryKarnataka RERA enforces strict timelines for project completion. Delays come with financial penalties, promoting timely handovers and reducing the anxiety associated with project delays.

Defect LiabilityBuilders are now held accountable for structural defects and poor workmanship for five years after the project's completion. This provision ensures that homebuyers can enjoy a hassle-free living experience without worrying about immediate post-purchase repairs.

Complaint RedressalThe Karnataka RERA authority has a well-structured grievance redressal mechanism in place. Homebuyers can file complaints online, and the authority must resolve them within a specific timeframe. This feature offers a quick and efficient resolution process for disputes.

Transparency in AdvertisingBuilders must advertise their projects accurately, reflecting the project's actual status, approvals, and timelines. This prevents misleading marketing tactics that often lead to buyer dissatisfaction.

Real Estate Agents' AccountabilityKarnataka RERA also covers real estate agents, mandating their registration. This ensures that even the intermediaries in the real estate transactions adhere to ethical standards and maintain transparency.

Education and AwarenessThe Karnataka RERA authority actively engages in educating both builders and homebuyers about their rights and responsibilities under the law. This promotes a culture of informed decision-making.

Karnataka RERA- Features

1) Every Real Estate Project has to be registered under the Real Estate Regulatory Authority before marketing, booking, selling, or offering for sale

2) The RERA guidelines say that every real estate agent has to get their registrations and without it are prohibited from running their business.

3) Under the Karnataka RERA Act, homebuyers and developers can register complaints which will be taken up for resolution by the Appellate Tribunal of RERA Karnataka

4) Under the RERA Act, it is the builder's responsibility to make buyers aware of the carpet area and quote prices based only on this and not on the super built-up area.

5) Promoters and Builders need to keep 70% of the payment from Homebuyers in the RERA Bank account opened in the local branch where the project is going. In case a project has higher than the estimated value of sales revenue then 100 percent of the payment needs to be kept in the account.

6) In case the promoter fails to register the project with the authority, he shall be liable to a penalty up to 10 percent of the estimated cost of the real estate project. However, if the promoter constantly defaults or does not comply with the directions or orders of the in authority regarding the registration of the project, he shall be liable to pay additional fine of 10 percent of the estimated cost of the real estate project or imprisonment up to 3 years or an both.

7) Section 13 provides that the promoter cannot accept a sum of more than 10 percent of the apartment/plot cost as an advance payment/application fee. For any further collection towards the apartment/plot cost, the promoter is required to enter into an 'Agreement for Sale' with the allottee.

8) Buyers in Karnataka can obtain information and choose suitable apartments/houses/plots without having to worry about the project execution and with recourse to complaints against defaulting developers/agents.

9) Buyers will have a real-time view/update on the project status and litigations against any promoters.

10) One can check any of the updates at the official Karnataka RERA website- https://rera.karnataka.gov.in/

11) Buyers within the state have a platform to voice their grievances and lodge complaints against a promoter/agent.

12) The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of Karnataka RERA wherein all details of the registered project have been entered and include the registration number obtained from the Authority

The Process to Check Registration of Project

The Karnataka RERA Act also known as K-RERA provides homebuyers with easy access to checking the compliance of real estate projects online. If you are a potential homebuyer exploring properties, Dwello provides a step-by-step guide to verify whether the project or the Real Estate Agent has been approved under RERA.

Step 1: Go to Karnataka RERA official website: https://rera.karnataka.gov.in/

Note: The chosen language of the website is Kannada, but you can translate the website into English for convenience.

Step 2: Under the Services tab, click on PROJECT STATUS

Step 3: Here you can check various categories such as

• Applications Applied for Registration
• Applications Approved
• Applications Rejected
• Applications Withdrawal/Revoked
• Applications under Process
• Applications Under Query
• Applications Third Party Transfer

Now, the best thing about the search option is that you don't need to have all of the information available for the project. Any one of the following like Project Name, Application No, District, Promoter/Company Name/ Firm Name, Registration No, or Taluk to fetch the required information.

Considering you are a homebuyer looking for properties, you can put in the name of the project to fetch the details of registration. You also get the option to download RERA certificates.

Using the Karnataka RERA website, you can report fraudulent developers and agents if you are aware of a project that has not been registered with the regulatory authority.

If you want to register a complaint follow the below steps

Go to the RERA Complaint registration portal on the RERA Karnataka official website.

Step 1: Give in all your details on the official RERA Karnataka website

Step 2: Give the details of the respondent

Step 3: Put down that you want to upload documents that support your complaint

Step 4: Pay Rs. 1000 and make sure to upload the challan and submit your complaint on the RERA official website

The Process to Check Registration Of Real Estate Agents

The Karnataka RERA website also gives the provision to homebuyers to check wether Real Estate Agents are registered with the authority. It is important to remember that the Law prohibits unregistered real estate agents from selling.

Step 1: Go to Karnataka RERA official website: https://rera.karnataka.gov.in/

Under the Services tab, go to Agent Status

Under Agent Status you can check

• Application Applied for Registration
• Applications Approved
• Applications Under Process
• Applications Rejected
• Applications Withdrawn/ Revoked

You have to put any one of the following information - Agent Name or Company/Firm Name or Application Number or Registration Number to fetch the required details.

If you want to call up the RERA Karnataka, the contact number is 080 – 22249798, 22249799.

In conclusion, Karnataka RERA stands as a testament to the state's commitment to fostering a thriving and transparent real estate sector. With its salient features, it not only safeguards the interests of homebuyers but also encourages responsible and ethical practices within the industry.

As Karnataka continues to grow, the real estate sector, under the vigilant eye of Karnataka RERA, is set to flourish while ensuring that every stakeholder reaps the benefits of a well-regulated environment.

For more information on Karnataka RERA, Visit Dwello.in.