Karnataka RERA: Registration, complaints, latest news

Bengaluru being one of the most active real estate markets of India, the need for a real estate regulatory authority was imminent. Therefore, the state cabinet notified Karnataka Real Estate Rules-2017 and the Karnataka Real Estate Regulatory Authority (KRERA) was formed. While the motive of this institution is to promote transparency, financial discipline and accountability, the Authority is also responsible for protecting home buyers’ rights and preventing wrongdoings in the real estate sector, by eliminating miscreants and fly-by-night operators. The Karnataka state government comes up with various schemes for the welfare of those in the economically weaker society.

According to the Karnataka RERA rules, every promoter, ongoing project and real estate agent has to register with the Karnataka RERA before it can reach out to the common public. In a recent announcement, the Karnataka RERA has directed all the property developers to mention the RERA registration number in all print advertisements and register the name of the land owners, as well. Apart from this, the authority has asked builders to submit a self-declaration affidavit specifying all details on project completion, which will then be verified on-site by authorities.

According to the Karnataka RERA website, around 7,175 projects have applied for registration and 4,257 real estate agents have applied for registration. Around 8,896 complaints have been registered so far and there are 23 conciliation registered.

Mandatory deposit of unused project money back to K RERA project account

July 26,2023: As per a notification issued by Karnataka RERA, it is mandatory to deposit money into the RERA project designated bank account borrowed by the promoter by mortgage of the project land and utilise the money only for the same project development purposes.

The lenders/bankers/financial institutions shall also ensure to disburse such loans only to the designated RERA bank account of the project. Such designated RERA account details are published and available in K RERA website for each registered RERA project.

In case of the existing projects wherein promoters have borrowed money for a project and have not utilised any portion of such money to the respective project shall deposit the unutilised portion of money into designated K RERA account within three months from the date of the notification that was issued on July 19, 2023.

Projects will be considered complete only  after CC from competent authority: K Rera

The Karnataka real estate regulator (K Rera) has stated that only after a project is issued a completion certificate (CC) from a competent authority, will it considered complete.  This is true for all projects that has been completed even before the implementation of Karnataka Rera. This was made clear while terming Ozone Urbana Infra Developers’ project Serene Urbana as an ongoing project and directly it to get itself registered under Karnataka Rera as its  completion certificate was issued by an architect.

Karnataka RERA: Guidelines for developers

• The sale of a property must be based on the carpet area rather than the super-built area.
• Builders are required to keep 70% of the payment received from homebuyers in a separate account solely for construction purposes.
• Developers are also obligated to regularly upload project updates and details on their website.
• Any changes or alterations made to the project must be mentioned in the plans submitted to RERA (Karnataka Real Estate Regulatory Authority).
• In case of any delays, developers and buyers must pay an interest rate of 2% over SBI’s Marginal Cost of Leading Rate.
• It’s important to note that any violation of the RERA Act in Karnataka can result in one year of imprisonment for agents and buyers, while developers may face up to three years in jail.
• If any damage occurs to the property within the first five years, a solution must be reached within 30 days.
• Developers may only ask for a maximum of 10% of the project cost as an advanced payment before signing the registered sale contract.
• Furthermore, buyers are entitled to report any shortcomings in writing within one year after taking possession of the property.

 

Karnataka RERA: Benefits for homebuyers

• Homebuyers have the ability to monitor the construction progress through the developer’s website.
• Buyers will not be charged for the super built-up area, which excludes elevators, staircases, etc.
• Projects are less likely to be delayed as 70% of the payment is reserved for construction fees.
• The developer is liable for any building defects for up to 5 years.
• Any conflicts between the buyers and the developer must be resolved within 120 days.
• In case of delays, both the developers and buyers will have to pay an interest rate of 2% over SBI’s Marginal Cost of Leading Rate.

 

Karnataka RERA: How to register a project?

Step 1

Visit rera.karnataka.gov.in and click on ‘Project Registration’ option.

 

Step 2

Ensure you have all the key documents required for making the process hassle-free.

Here is the list of the key information required for project registration:

1. Balance sheet of the past three years.
2. Audited profit and loss statement of the past three years.
3. Directors’ report of the past three years.
4. Cash flow statement of the past three years.
5. Auditor’s report.
6. Income tax returns.
7. PAN card.
8. Encumbrance certificate.
9. Commencement certificate.
10. Approved building plan.
11. Approved layout plan
12. Proforma of agreement for sale.
13. Sale deed and RTC.
14. Approved section of building.
15. Area development plan of project area.
16. Proforma of allotment letter.
17. Brochure of current project.
18. Project specification.
19. Joint development agreement.
20. Declaration (FORM B).
21. Khatha.
22. Approval/NOC under Section 109 of KLR Act 1961.
23. Conversion certificate under Section 95 of KLR Act 1961.
24. Approval /NOC under Section 14 of KTCP Act.
25. Fire department NOC
26. Airport Authority of India NOC.
27. BESCOM NOC.
28. BWSSB NOC.
29. KSPCB NOC.
30. SEIAA NOC.
31. BSNL NOC.
32. Lift authorities’ permission.
33. Existing layout plan.
34. Existing section plan and specification.
35. Change of land use.
36. BMRCL NOC.
37. Urban land ceiling NOC.
38. Sectional drawing of the apartments.
39. Bangalore Urban Arts Commission.
40. Inspector of Factories controller of explosives, Railways.
41. District magistrate.
42. Coastal Regulation Zone Authority.
43. Certificate from a registered engineer, indicating structural safety of the building.
44. NOC, in case of building proposals abutting to neighbouring properties.
45. Advocate search report.
46. Utilisation certificate.
47. Transfer of development rights certificate.
48. Relinquishment deed.
49. Project photo.

 

Step 3

There are two types of registration – Individual and Society. Choose the category and mention your email ID.

 

Step 4

There are five steps that have to be followed, which include filling up promoter details, project details, document uploads, payment and receiving confirmation.

 

Karnataka RERA: Documents to be submitted on project completion

On December 23, 2020, the K-RERA announced the introduction of a new system that would require a developer to submit a self-declaration affidavit with the following documents:

• No-objection certificate issued by the fire services department.
• Consent for operation from the pollution control board.
• Sanction letter issued by the concerned Escoms for power connection.
• Details of the installed transformer.
• Certificate issued by the BWSSB on the working status of a treatment plant.
• Details of external infrastructure such as driveway, play area, garden and water availability.

All the details furnished by the developer at the time of project completion will be then verified on-site by the authority. Earlier, the developer was required to upload only four documents on completion of the project on the K-Rera website.

Also read all about Karnataka stamp duty

 

Karnataka RERA: Registration fee

Type of project	Applicable fees
Group housing project with developable land of less than 1,000 sq metres.	Rs 5 per sq metre
Group housing project with developable land of more than 1,000 sq metres.	Rs 10 per sq metre (maximum Rs 5 lakhs)
Mixed development project with developable land of less than 1,000 sq metres.	Rs 10 per sq metre
Mixed development project with developable land of more than 1,000 sq metres.	Rs 15 per sq metre (maximum Rs 7 lakhs)
Commercial project with developable land of less than 1,000 sq metres.	Rs 20 per sq metre
Commercial project with developable land of more than 1,000 sq metres	Rs 25 per sq metre (maximum Rs 10 lakhs)

See also: All you need to know about Karnataka’s Basava Vasati Yojana housing scheme

 

Karnataka RERA: How to register as an agent?

Every real estate agent operating in Karnataka has to register his/her business with the the RERA. It could be at an individual level or entity level. Here is the process:

Step 1

Visit rera.karnataka.gov.in and click on ‘’Agent Registration’’ option.

 

Step 2

Choose between individual or business entity and mention your email.

 

Step 3

Fill the details such as personal information and area of operation. Upload documents, which includes an affidavit and pay the registration fee.

 

Step 4

Wait for a RERA registration number to be allotted by the authority.

The registration fee for individual real estate agents is Rs 25,000 and Rs 2 lakhs, if it is a business entity.

 

Karnataka RERA: How to file a complaint?

Home buyers and investors can file a complaint with Karnataka RERA online in three simple steps:

Step 1

Visit rera.karnataka.gov.in and click on ‘’Register Complaint’’. Login with your details. If you are a first-time user, you have to create an account.

 

Step 2

Once logged in, feed in information such as complainant details, respondent details and relief sought from the RERA. The user has to also mention details of complaints and supporting documents to make their case strong. To register the complaint, the user has to pay Rs 1,000 through the online payment and publish the acknowledgement slip here.

 

Step 3

User will receive the acknowledgement number/complaint number shortly after submitting the complaint.

 

Karnataka RERA: How to report unregistered projects?

Home buyers and investors can also report unregistered projects to the RERA through this online portal. The complainant has to mention the name of the project, promoter, project address and any relevant documents.

 

You can read more about RERA Karnataka Rules here.

 

Karnataka RERA: How to check RERA status?

RERA encourages home buyers to check the status of registered projects, before buying a home in a particular housing project.

How to check RERA status for registered projects in Karnataka?

Step 1: Visit the RERA Karnataka portal. On the home page, click on ‘Project Status’ under ‘Services’ tab.

 

 

Step 2: On the next page, there will be multiple options for various applications. For registered projects, enter details like project name or application number, etc. Click on ‘Search’.

 

 

The details of the project, including the status, will be displayed on the screen.

 

 

How to check RERA status for agents in Karnataka?

One can also see the status of RERA-registered agents on the RERA Karnataka portal by clicking on ‘Agent Status’ under ‘Services’.

 

 

Click on ‘Applications Approved’ from the multiple options given on the page. Enter one of the search criteria, such as agent name or company name, etc. Click on ‘Search’ to check the status.

 

 

Karnataka RERA: Contact details

Karnataka RERA office address: Silver Jubilee Block, 3rd Cross Rd, Sampangi Rama Nagara, Bengaluru, Karnataka 560002

Phone No: 080-22249798

 

Karnataka RERA: Latest news

Covid 19: Karnataka RERA extends deadline for project registration

Following the footsteps of Maharashtra Real Estate Regulatory Authority (MahaRERA), the Karnataka Real Estate Regulatory Authority (K-RERA) has also given a three-month deadline extension to all real estate projects in the city. The extension is valid for those projects which are registered with K-RERA and whose completion date expires on March 15. This also includes statutory compliances under RERA Act, 2016 which were due in March, April and May. Now, the last date is June 30, 2020. Additionally, the K-RERA has also adjourned all the complaints listed before adjudicating officer to avoid gathering of vistors and lawyers. The new date will be updated on the authority’s website on case to case basis.

 

FAQs

Is RERA applicable in Karnataka?

Yes, Karnataka state cabinet has already approved and notified Karnataka Real Estate Rules-2017 and the Karnataka Real Estate Regulatory Authority (KRERA) has been formed.

What is Karnataka RERA?

Karnataka RERA is the Real Estate Regulatory Authority, responsible for protecting home buyers' rights and preventing wrongdoings in the real estate sector, by eliminating miscreants and fly-by-night operators.

How to check registered project in Karnataka?

You can visit rera.karnataka.gov.in and select ‘Projects’ from the top menu. You need to login with your personal details to view RERA registered projects.

How do I get RERA approval?

You need to register yourself with RERA authority as an agent/developer by submitting all the necessary documents listed on the official website.

When did Karnataka approve its RERA rules?

The Karnataka state cabinet approved the Karnataka Real Estate (Regulation and Development) Rules, on July 5, 2017.

Are the Karnataka RERA rules applicable on Bangalore Development Authority projects?

Yes, the Karnataka RERA rules are applicable on Bangalore Development Authority projects, as well as Karnataka Housing Board Projects.

Which entities are required to register themselves under the Karnataka RERA?

The Karnataka RERA rules state that every ongoing project, promoter and real estate agent has to register with the RERA.

What is the status of registrations on the Karnataka RERA website?

So far, 3,803 projects and 2,101 real estate agents have been registered on the Karnataka RERA website. 3,775 complaints have also been registered.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com