On consent of both the houses of the parliament in the year March 2016, the Real estate (regulation and development) act has been in action in approximately 19 states and union territories of the country, namely Andhra Pradesh, Bihar, Gujarat, Kerala, Maharashtra, Odisha, Uttar Pradesh, Chhattisgarh, Chhattisgarh, Madhya Pradesh, Uttarakhand, Rajasthan, Chandigarh, Andaman & Nicobar Islands, Daman and Diu, Lakshadweep and Delhi-NCR.
The components of the RERA act have been formulated in interest of safeguarding the home buyers. The rules and regulations of the act have been encapsulating both commercial as well as residential projects. Under the regulations of this act, it is essential for residential and commercial properties to register with the regulatory authority within a span of three months. It is mandatory for Residential developments occupying land area of more than 500 sq.metres to register with the authority.
RERA Compliant Projects in Karnataka
Karnataka is one of the states in India, where the RERA act has been successfully implemented by the Karnataka Government’s Department of Housing. The regulatory body present in the state has made an effort to ease the registration process by creating an online platform which can also be used for reporting any violations to the act which would lead to immediate strict actions by the regulatory body.
Referring to the updated data published on the online portal of the Department of Housing of Karnataka, the platform has received more than 2771 project registrations out of which 2193 have been approved.
Apart from this, more than 1472 property agents have sent their applications for approval with 1159 of them being approved by the regulatory body. More than 163 upcoming developmental project applications have been dismissed by the authority.
RERA Karnataka Approved Projects & Agents
1. RERA Karnataka Approved Projects : Click here to visit
2. RERA Karnataka Approved Agents: Click here to visit
Provisions of the RERA Act:
1. The Real estate regulation and development act will be covering all the upcoming and under construction developmental projects.
2. 70 percent of the amount paid by the home buyer is to be pledged by the developer to a separate project account whose withdrawals would be in monitoration by the authority.
3. The developer of any residential or developmental project is bound to register with the authority prior to selling or advertising about his/her project.
4. The sale of apartments would be regulated by carpet area as the criteria.
5. A majority vote of 2/3rd home buyers or residents is mandatory for any addition or change in the project.
6. Discernment or differentiation on any basis will not be tolerated in terms of property sale.
7. Both the parties involved in the transaction,namely the developer and the customer would be entitled to pay penalties in case of any delay caused.
8. Rigid penalties and punishments are to be propounded in cases of fraud or violation of the RERA Act.
Penance and Punishments On Violation of the RERA Act
1. 3 years imprisonment or penalty of (10% amount of the developmental cost) if the developer does not get his/her project registered under the Real estate development authority within a span of three months of its evolution.
2. In exhibition of false data or Information regarding the developmental project, the developer shall be penalized to deposit 5% of the total project amount.
3. Unsuccessful registration of the property agent would lead to a fine of Rs.10000 per day or 5% equity of the total project cost.
4. Violation of any guidelines laid by the RERA act would result into the developer or the property agent paying 5% of the total cost of the project.
5. Any denial to the orders of the RERA would result to a penalty of 5% of the project cost to the developer as well as the agent and the resident.
Benefits of the RERA Act
1. The funds deposited by the developers in the “seperate project account” to the authority safeguards the interests of the home buyers by ensuring the right use of the money.
2. The RERA act makes it mandatory for developers to submit correct and authentic information about a project which avoids the cases of false representations and real estate frauds.
3. Protects the home buyers from being victims of paying extra developmental cost to the construction companies.
4. The regulatory mechanism protects the developers from the delay in payments by the customers as well as ensures that there is no delay in the construction process by the developers as well.