[ Buyer Education ]
Understanding RERA Karnataka: what every buyer should know
The Real Estate (Regulation and Development) Act, commonly known as RERA, was enacted to protect homebuyers and bring transparency to the real estate sector. Karnataka has its own RERA authority (K-RERA) that oversees project registration and dispute resolution in the state.
What RERA requires from developers
- Registration of all residential projects exceeding 500 sq metres or 8 units before advertising or selling.
- Disclosure of project details including layout plan, approved sanctioned plan, and timeline.
- Deposit of 70% of project funds in a separate escrow account to prevent fund diversion.
- Adherence to the committed possession date, with penalties for delays.
How to verify a project on K-RERA
Visit the K-RERA website (rera.karnataka.gov.in) and search by the RERA number, project name, or developer name. Verify that the project phase you are buying matches the registered phase, and check the registered possession date.
Buyer protections under RERA
RERA gives buyers the right to receive the property as per the sanctioned plan, on time, and with the specifications promised. If the developer defaults, buyers can file a complaint with the RERA authority for compensation or a refund. The carpet area calculation methodology is also standardized under RERA.
Filing a complaint
- Complaints can be filed online through the K-RERA portal.
- You will need to provide your sale agreement, payment receipts, and details of the grievance.
- The authority typically gives the developer a chance to respond before passing an order.
- Appeals against RERA orders go to the RERA Appellate Tribunal, and then to the High Court.
Limitations to be aware of
RERA does not cover plotted developments in some states (Karnataka does cover them), and projects with completion certificates issued before RERA may not be registered. The enforcement of RERA orders can be slow in practice, so prevention through proper due diligence is always better than relying solely on the complaint mechanism.
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