The RERA Act of 2016 is one of the prominent legislation passed by the Government. It intends to reform and refine the real estate sector, encouraging transparency, citizen centricity, accountability, and financial discipline. It aligns with India’s vast and booming economy, as in the coming years, many people would be investing in the real estate sector. The Government of Karnataka notified the RERA Karnataka Rules, 2017, on 10 July 2017 and launched the website on 24 July 2017.
RERA for Real Estate Agents
Under this Act, the Real Estate Agent has to furnish the following documents for registration along with the necessary forms filed with the Regulatory Authority.
Those are as follows:-
- Full details of the organization, including its name, registered address, type of organization such as proprietorship, societies, co-operative society, partnership, companies, etc.
- Particulars regarding registration including the bye-laws, articles of association, memorandum of association, etc.
- Name, registered address, contact details, and photographs of the real estate agent in case of an individual and the organization’s full details of the partners, directors, etc.,
- Self-attested copy of PAN card
- Self-attested copy of address proof of the place of business.
What is there for buyers?
Any aggrieved person can file a complaint with the Regulatory Authority regarding any violation of the Act or the rules and regulations mentioned thereunder. The aggrieved Consumer can file the complaint with the Regulatory Authority or Adjudicating Officer. A fee of Rs.1,000 is required to be paid as a complainant.
Project Registration Fees in RERA Karnataka
RERA Karnataka revises charges for various services rendered by RERA.
Under Section 37 of the RERA Act, 2016, the RERA Karnataka has vested power to issue directions to the promoters, allottees, or real estate agents from time to time, as it considers necessary from time to time. However, Under Section 34(e) of the Real Estate (Regulation and Development) Act 2016, the RERA Karnataka is vested with the power to fix the standard fees to be levied on the allottees or promoter or real estate agents for various services carried out by the Authority, pertaining to operationalize a web-based online system.
It provides services on a transactional basis for updating registration of the project, technical clearance, and permission, etc., rendered by the Authority. It has also been decided to levy the charges, which was over and above the charges of the Authority as specified in the Rules, which also includes updating a website, database management and maintenance of a website, etc.
The bank charges and taxes must be charged extra on the actual basis to be paid by the user. Hence, it felt necessary to issue further directions on the fees for the specific services. Hence, the charges for the following services rendered by RERA Karnataka are as bellow:
|S.No||Type of Transaction||Fees Excluding Taxes|
|1||Correction of the Project Name||Rs 10,000|
|2||Correction of the Project Address||Rs 10,000|
|3||Correction of Promoter Name||Rs 10,000|
|4||Correction of Promoter Address||Rs 10,000|
|5||Correction of the Email Address or Mobile Number||Rs 10,000|
|6||Change of RERA Bank Account Details||Rs 10,000|
|7||Third-Party Transfer||50% of the cost paid of Registration of Project|
Charges for inspection of documents and certified copies of the documents must be applicable as under RTI Act and Rules as amended from time to time. It is to be also noted that the levy of the above-prescribed charges will be effective commencing from this 15-02-2020 irrespective of the date of submitting of application and approval thereof, till further revision.
Read our article:RERA Complaint or Consumer forum (NCDRC): Which is better?
Guidelines for Project Registration in Karnataka
RERA Karnataka has become operational since 24 July 2017, and currently, many projects and agents are enrolled with RERA Karnataka. According to section 3, every promoter must register its project before selling or marketing it. On must ensure speedy registration and requires to comply as per the requirements of the Act. The RERA Karnataka has issued the following guidelines in respect of project registration.
- All the documents provided must be legible and clear. Blurred documents are not considered and accepted.
- Declaration in Form B, the Affidavit must be provided as per the prescribed format. Promoters are not allowed to add or remove any clause in the declaration afterward.
- Some of the fields in an application form are mandatory, against which documents have to be submitted. Even if the rest of the fields are not mandatory, then also promoter requires providing as much information as possible. Promoter requires to furnish one local address and bank details in the state of Karnataka (as per section 4(2)(1) (D)). If any data field is kept blank, it can be assumed that the concerned area is not applicable for a respective project, and the value becomes nil or not applicable.
- In the case of document upload, if a field is not given, then a self-declaration to the same effect must be uploaded.
- The promoter must ensure the integrity and completeness of all data and documents provided. The promoter must also ensure strict adherence to RERA Act, Rules, and Circulars issued thereunder by the Authority while submitting the documents and information. Mere Grant of Registration by an Authority does not conform to the compliance with the Act, Rules, and Circulars issued by the Authority. Even after registration, if any misleading or incorrect information has been provided or documents do not adhere to Act, Rules or Circulars issued by the Authority, then necessary action can be taken by the Authority.
Guidelines for Releasing any Advertisement in Print and Electronic Media
RERA Karnataka issued a circular in respect to “Guidelines for releasing any advertisement in print and Electronic media.” Advertisement, as defined in section 2(b), any document described or issued as advertisement through any medium, which includes any notice, circular or other documents or publicity in any form. It informs people about a real estate project, or offering for sale of an apartment, plot, or building or inviting persons to purchase in any manner such building, plot, or apartment and make deposits for such purposes.
This circular states that verified Real Estate projects are promoted in the digital portals, which works as online intermediaries for promoting the project across the state of Karnataka. It was further found that most of the advertisements were advertised without indicating RERA Karnataka Registration details as prescribed under the provision of the RERA Act, 2016. Hence, it is construed as digital portals are providing incorrect information about real estate projects.
RERA Karnataka issued following guidelines for promoters and agents of the state
- The digital portals must maintain self-imposed discipline for fair practice so that wrong information of non-registered properties nor without indicating RERA registration details are not disseminated by them, which can ultimately result in prejudicing the interest of both the buyers and the promoters.
- Digital portals carry the function of the real estate agent, and the same requires registration with the Authority. Such digital portals are directed to register themselves with the Authority within the next two months if their activities are spread within Karnataka’s state. Furthermore, the Digital portals are obligated to discharge the functions provided under section 10 of Act, namely to maintain preserve books of account facilitate the possession and the documents.
- Those portals which do not want to discharge these functions provided under law, then it is up to them to confine their activities as an advertising agency, namely to give information about the real estate project for offering it for sale or inviting persons for purchasing it and not more than that.
- The activities in the digital portal are only confined to an advertisement defined as per section 2(b) of the RERA Act. It need not register themselves as real estate agents, provided in a disclaimer, declare that they are merely advertising agencies and advise the viewers to cross-check the information from other sources, including RERA websites.
- If the completion certificate for the said project was applied has been obtained before 11 July 2017, the same must be mentioned in the advertisement
- RERA Karnataka Registration number should be mentioned in the display board at the project site
- While releasing an advertisement in print media, hoarding or via electronic media, the following points need to be kept in mind:
- Advertisement of projects in the print media, hoarding, or any other visual medium must contain the registration number issued by the Authority on the top right corner of the advertisement. The site of the numbering used for this must not be less than the font used for the name of the real estate project in the said advertisement
- Karnataka RERA website must be mentioned in the advertisement for more details about the project
- No disclaimer clause must be mentioned stating the information is subject to change.
- The length and breadth of “RERA REGISTERED” information must not be less than 10% of a length and width (whichever is higher) of the advertisement issued in print media
- In an advertisement on FM radio or via electronic media and SMS, the registration number issued by the Authority must be prominently mentioned.
Promoters and agents must keep the above points in mind while releasing advertisements. If promoter/agents fail to comply, action will be initiated under the provision of the RERA Act 2016. Hence all the digital portals have to ensure the compliance of for advertisement to be carried out and listed publications too, from the advertiser in accordance guidelines.
The Authority has been designed to keep the above factors in mind that reflects the values of the basic Authority’s functioning of RERA Karnataka. It portrays the Authority’s commitment to have a caring, nurturing environment for promoting the real estate sector. The design & choice of the emblem embodies a spirit that underpins the Authority’s work – representing tranquillity, prosperity, and transparency.
Read our article:Comprehensive Guide on RERA Registration for Promoters