The world of real estate in India has seen a significant transformation thanks to the Real Estate Regulatory Act of 2016. In Karnataka, the Act was implemented in 2017 to bring regulation and transparency to the state's real estate sector. Gone are the days, when you a homebuyer would have to constantly worry about whether you are going to receive all that has been promised by the developer.

Since then, the regulatory body has emerged as a pivotal body safeguarding the interests of homebuyers. For allottees, individuals who purchase properties or enter into agreements with developers, RERA has put in place a set of rights and duties to facilitate fair dealings and protect their investments.

As a homebuyer, it is important to know about all the rights and responsibilities that RERA has made extensively available. In this article, we will delve deeper into the intricacies of each right and how it empowers you in your property-buying journey.

Before we begin, it is important to note that RERA is not just a buyers' law but also protects the sellers. Therefore, certain responsibilities lie with homebuyers as well to maintain transparency and sanctity of the entire transaction. In this article, we will also look at the duties that homebuyers need to follow to be compliant with the RERA law in Karnataka.

What is RERA?

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.

One of the most important rules of the RERA Act is the mandatory registration of projects, promoters, and real estate agents. This means homebuyers should only buy homes or plots or other real estate that have been approved by RERA.

Also Read: Unlocking Karnataka RERA: Features and Easy Registration Check

Rights of Homebuyers Under RERA in Karnataka:

Access to Information

As a homebuyer, you possess the right to access vital information regarding sanctioned plans, layout specifics, and other details approved by the competent authority or mentioned in the sales agreement. This transparency empowers informed decision-making.

Completion Schedule Insights

RERA entitles homebuyers to be updated with a stage-wise completion schedule of the project, including the provisions for water, electricity, etc., as mentioned in the sales agreement. This ensures accountability and keeps you informed about project timelines.

Claiming Possession

Upon project completion, you have the right to claim possession of your property, while the association of buyers can claim common areas, aligning with the declaration made by the promoter.

Refunds and Compensation

In instances where the developer fails to fulfill the agreed-upon terms or discontinues the project, RERA safeguards your interests. You reserve the right to claim a refund of the amount paid along with interest and compensation as mandated by RERA guidelines. If the developer fails to fulfill the agreed-upon terms and conditions as stated in the agreement, the developer can be penalized.

Access to Documentation

Post-possession, you should have unfettered access to crucial documents and plans related to your property, facilitating a deeper understanding of your investment.

Responsibilities of Homebuyers Under RERA in Karnataka:

RERA isn't solely a law benefiting buyers; it also safeguards the interests of sellers. Hence, homebuyers carry specific responsibilities to uphold transparency and integrity throughout the transaction process.

Below are the responsibilities of a Homebuyer to be compliant with RERA. If a homebuyer fails to comply, there may be a penalty or imprisonment, or both. Read our guide to find out the penalties that you as a homebuyer might face under RERA

Timely Financial Commitments:

Ensuring timely payments as per the agreement terms is imperative. Adherence to payment schedules, including registration fees, taxes, and maintenance charges, showcases compliance and sustains the integrity of the agreement.

Addressing Payment Delays

Any delays in payments might attract interest charges, necessitating responsible and timely financial management.

Active Participation in Associations

Contributing to the formation of associations or societies of buyers, as mandated by RERA, promotes collective interests and strengthens the community of homeowners.

Property Possession and Registration

Once the occupancy certificate is obtained, securing possession within the stipulated period and participating in the registration process are key responsibilities.

Also Read : How to File a RERA Complaint Against Builder, Broker in Bengaluru

How has RERA helped Homebuyers and the Real Estate sector?

The impact of RERA on the real estate sector has been remarkably positive, bringing about several crucial changes:

Firstly, it has rejuvenated the confidence of homebuyers and investors. Reports indicate a significant rise in housing demand during the initial quarter of 2018 following the implementation of RERA.

1) Under RERA, it's mandatory for all projects to register, providing comprehensive details such as the developer's information, approved plans, unit numbers, and carpet area. This ensures accountability and prevents premature launches or advertisements before property registration. Developers are also required to update their corporate websites with project progress, keeping buyers informed.

2) Builders are now obligated to accurately quote the carpet area in agreements, excluding any superficial built-up areas. This transparency gives buyers a precise understanding of space and associated costs.

3) The indiscriminate launch of projects has ceased as RERA mandates that all approvals must be in place before a project is introduced. This regulation favors established builders, enhancing industry organization and improving the turnover rate of available inventory.

4) Previously, developers could shift funds between projects. Now, 70% of the raised funds must be deposited in a dedicated bank account, accessible only after certification by professionals like engineers, CAs, and architects.

5) Moreover, RERA has capped the advance or application fees a builder can take from a buyer to 10% of the project cost. This eases the burden on buyers, eliminating the need for arranging substantial funds within a short period.

6) Another significant change is that both parties - buyer and promoter - are now liable to pay the same amount of interest in case of delay, unlike the prior scenario where the buyer faced higher penalties for delayed payments than the promoter for delayed possession.

As of 2023, Karnataka RERA has a total complaint of 9260 on 1843 projects, while, a total of 1019 cases have been sold with a total realisation amount of Rs 41,173,1623. You can check the number of cases along with the complaints registered on projects and Promoters on the official Karnataka RERA website.

In conclusion, navigating the property landscape in Karnataka under RERA necessitates a comprehensive understanding of your rights and responsibilities. By exercising your rights judiciously and fulfilling your duties conscientiously, you not only safeguard your investment but also contribute to a more transparent and accountable real estate ecosystem. The synergy between informed homebuyers and a regulated real estate environment heralds a promising future for property transactions in Karnataka. Overall, RERA has brought about transparency, accountability, and fairness in the real estate sector, safeguarding the interests of buyers while fostering a more responsible and regulated industry landscape.

If you're looking for a home that is already RERA Karnataka approved, why not start your search on Dwello.in. You can find ready-to-move properties, and even under-construction properties here. You can even save money by getting deals DIRECTLY from the best builders in Karnataka! Visit Dwello.in today to explore a wide range of RERA-approved properties.