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Karnataka Real Estate Regulatory Authority(K-RERA): What it is and Why it is Important

All new homes and properties in Karnataka have to be registered with RERA before they can be sold as per law.

The Karnataka Real Estate Regulatory Authority (K-RERA) is a government agency that makes sure that developers and builders of Real Estate follow a well defined set of rules when building homes and other properties in the state of Karnataka. The main goal of RERA is to protect people who are buying homes and make sure that the homes are built on time and are of good quality. This government body was established in 2016 and is in charge of making sure that developers and builders don't make false claims and don't use unfair or dishonest practices with regards to anything Real-Estate.

All new homes and properties in Karnataka have to be registered with RERA before they can be sold as per law. This registration process, which is fairly rigid, makes sure that buyers have all the information they need about the home or property, like where it is located, how much it costs and when it will be finished. Apart from this, RERA also has considerable influence on how people can market construction projects - with recent rules being amended by the K-RERA to always include the RERA registration numbers when property developers advertise about them. This blog will go through important information regarding things like registration, checking project status and filing complaints with regards to Real estate through this agency.

How to register a project to RERA through the internet

The government of karnataka has made it easy to  register a property development project on RERA by constructing a portal for the same. At present, there are already more than 3800 projects registered. Follow the below steps to register a project on K-RERA.

1. visit the official K-RERA portal(rera.karnataka.gov.in) here, and click on the “project registration” option.

1. Have the following documents at the ready. They will be important in the future stages of the registration.

• Financial statements including the balance sheet, profit and loss statement, and cash flow statement for the past three years, along with the director's report and auditor's report.
• Tax returns and PAN card of the developer or builder.
• Encumbrance certificate and commencement certificate for the project.
• Approved building and layout plans, as well as proforma of the agreement for sale and sale deed.
• Area development plan, proforma of allotment letter, and brochure of the current project.
• Joint development agreement and declaration form.
• Khatha, conversion certificate and NOC from various authorities such as KLR, KTCP, Fire department, Airport Authority of India, BESCOM, BWSSB, KSPCB, SEIAA, BSNL, and lift authorities.
• Existing layout plan, section plan and specification, change of land use, BMRCL, and Urban land ceiling NOC.
• Sectional drawing of the apartments, NOC from Bangalore Urban Arts Commission, Inspector of Factories, controller of explosives, Railways, District magistrate, Coastal Regulation Zone Authority, and certificates from registered engineers indicating structural safety of the building.
• NOC from neighboring properties, advocate search report, Utilization certificate, transfer of development rights certificate, and relinquishment deed.
• Project photo.

It's worth noting that this list may not be exhaustive and the requirements may change over time, please verify with the RERA authority to get the most updated information.

1. choose the right category of registration. Individual registration option applies to a single building or unit, while society registration applies to a group of buildings or units that are being developed by a society/association of co-owners.

1. This step is the actual registration process. One has to fill in the promoter details, project details, submit the documents mentioned above and pay the registration fees to complete the registration successfully.

Registration Fee details

The government of karnataka reserves the right to change the following fees, so it is best to look up the fee on the official website to be sure of them. As per our knowledge, the registration fee details are given below.

• Group housing projects with developable land less than 1,000 sq meters: ₹5 per sq meter
• Group housing projects with developable land more than 1,000 sq meters: ₹10 per sq meter, with a maximum fee of ₹5 lakhs
• Mixed development projects with developable land less than 1,000 sq meters: ₹10 per sq meter
• Mixed development projects with developable land more than 1,000 sq meters: ₹15 per sq meter, with a maximum fee of ₹7 lakhs
• Commercial projects with developable land less than 1,000 sq meters: ₹20 per sq meter
• Commercial projects with developable land more than 1,000 sq meters: ₹25 per sq meter, with a maximum fee of ₹10 lakhs.

What one should do after project completion

On December 23rd, 2020, the K-RERA introduced a new system which mandates the submission of a self-declaration affidavit alongside certain documents for developers to move forward with their projects. These documents include:

• A clearance certificate from the fire department
• Approval from the pollution control board
• Permission from the electricity supplier for power connection
• Details about transformer capacity
• Certification from the BWSSB on the functioning of treatment plants
• Information on external infrastructure such as driveways, playgrounds, gardens, and water availability.

Before this system was introduced, there were only 4 documents which was required to be submitted by the developer of a construction project which would then be verified on site, by authorities. However, now all of the above are verified by such authorities on-site.

Agent Registration Procedure through RERA

In order to become a registered real estate agent in the state of Karnataka, it is necessary to register with the Real Estate Regulatory Authority (RERA). This can be done either at an individual level or as a business entity. Here is the process for registration:

• Go to the RERA website and select the option for "Agent Registration."

• Choose whether you are registering as an individual or a business entity, and provide your email address. Note that the registration fee for individuals is ₹25,000 and for a business entity is ₹2 lakhs

• Fill in all required information, including personal details and areas of operation. Additionally, you will need to upload certain documents, such as an affidavit, and pay a registration fee.

• Once all the above steps have been completed, wait for the RERA to allocate a registration number.

How to file a complaint regarding a property/project to RERA?

If there's a problem with a property or if a developer or builder doesn't follow the rules, RERA can take action against them. People who have a dispute with a developer or builder can file a complaint with RERA in the following manner.

• Visit the RERA website and select the option for "Register Complaint." If you are a first-time user, you will need to create an account by providing your login details.

• Once logged in, enter all the required information such as complainant details, respondent details and relief sought from the RERA. Additionally, you will need to mention details of the complaints and upload supporting documents to strengthen your case. To register the complaint, you will need to pay a fee of ₹1,000 through online payment and upload the acknowledgement slip.

• After submitting the complaint, you will receive an acknowledgement number/complaint number shortly.

Conclusion

As you can see, the K-RERA is an important regulatory body for all the real estate projects that looks over all real estate projects in the state. Any project that isn’t registered to it effectively becomes illegal, and it is almost impossible to go forward with such unregistered projects in metro cities like Bengaluru. However, with the government creating official portals on the internet, it has become easier for real estate projects, agents or even complaints to be officially filed pretty easily. All of the above listed procedures can be done without anyone’s help, it is best to work with a real estate agency like real estates worldwide so that your work gets completed fast and without hassle with regards to K-RERA.