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The RERA Act – Everything Homebuyers Should Know

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The RERA (Real Estate Regulation and Development) Act was brought into force with much fanfare but 2 years later, has it really changed the real estate sector in Karnataka. Read on to find out how to file your complaint in Karnataka RERA as well as the documents and fee required.

RERA Act, Purva Whitehall Apartments, Bangalore
An Apartment Cluster

What Is The RERA Act?

The Real Estate Regulation and Development (RERA) Act was legislated to reform the real estate sector and bring about transparency, accountability and make the sector more citizen-centric.

The Act had 92 sections and came into force in 14 states including Karnataka in 2017.

Both residential and commercial projects are covered by RERA. As of May last year, 2800 projects were registered with the RERA office but only 1259 of these have been approved.

The Key Provisions In RERA

  • Property sale must be based on carper area and not super built-up area
  • Builders must deposit 70% of the payment received from home buyers in a separate account for the construction
  • Developers must disclose project details and update the same regularly on their website
  • The original plans for the project and any alterations made must be submitted to RERA
  • In the case of any delays, the developer and buyer must pay an interest rate of 2% over the SBI’s Marginal cost of leading rate (MCLR)
  • Violation of the RERA act can lead to imprisonment for up to 1 year for agents and buyers and 3 years for developers
  • Workmanship or structural defects in the building that appear within the first 5 years must be rectified within 30 days.
  • No more than 10% of the project cost can be demanded by developers as an advance payment before signing the registered sale agreement
  • Buyers may contact the developer in writing within 1 year of taking possession to point out shortcomings in the project.

How Homebuyers Can Benefits From RERA?

RERA was intended to make the process of buying property easier and more transparent for buyers. The Act gave homeowners a number of benefits including:

  • Homeowners would be able to view progress on construction at the developer’s website
  • Buyers would no longer be charged for the super built-up area. This includes lifts, staircases, and lobbies.
  • Projects would be less likely to be delayed as 70% of the payment made by buyers can be used only for construction purposes
  • The developer is responsible for defects in the building for up to 5 years
  • In the case of a delay in handing over the property, the developer would have to pay an interest of 2% more than the SBI’s MCLR to the buyer
  • All disputes with buyers must be resolved within 120 days

Filing A Complaint In Karnataka RERA – Quick Facts

  • Application fee – INR 1,000
  • To file an appeal at an Appellate Tribunal fee will be INR 5,000
  • Any person who faces any violation under RERA laws can file the complaint
  • Form ‘N’ needs to be filed along with INRs 1,000 paid in the form of a demand draft.
  • Website – http://rera.karnataka.gov.in

How To File A Complaint In Karnataka RERA Via Online

Here is a guide to file RERA complaint online in Karnataka:

  1. Visit the Karnataka RERA Complaint Registration Portal – http://rera.karnataka.gov.in/complaintForm
  2. Fill in the form with your personal information such as name, contact number, email id, etc.
  3. Provide the details of the respondent
  4. Fill in the facts you want to disclose and also upload the documents which can be proof of your complaint.
  5. Pay INR 1,000 as a fee. Upload the Challan as proof of payment.
  6. Click on the declaration and submit your complaint

Once you submit, you will get an acknowledgement number. Keep this number for future reference.

Documents Required To File A Complaint In Karnataka RERA

  • Allotment letter
  • Cheque details
  • Receipts received against payment
  • Builder-buyer agreement
  • Building layout or any other form of communication with the builder

Effects Of RERA on Ground

RERA has lofty aspirations but the on-ground reality does not yet match its ideals. SOPs are still being brought in and though many builders have been penalized till date, others are still evading the system.

Buyers who have complained to RERA against developers claim that they have received no help or compensation for their complaints.

There are 840 such cases in Bangalore alone. With frustration and hopelessness taking root, over 2000 buyers are set to stage a protest on May 18th against the government inactivity and RERA partiality to builders.

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