RERA Karnataka: RERA Registration Process, Eligibility & Fees

Do you know that Karnataka is one of the first few states which introduced the Real Estate Regulatory Authority Act? 

You might be wondering why are we asking you this question. Well, believe it or not, the official authorities of Karnataka quickly adapted to this system. Interestingly, they even launched an online portal for the same in 2017. The Karnataka RERA online portal was created per the 2016 RERA Act. They made it mandatory for every commercial and residential property to be registered with RERA. This implies that all the unregistered properties are deemed illegal. With this implementation, the state has been able to regulate the real estate industry and simultaneously promote real estate investments.

What is the RERA Act In Karnataka?

The official online portal for the Karnataka Real Estate Regulatory Authority (Karnataka RERA) was established in 2017 in accordance with the RERA act of 2016. The RERA Act Karnataka was implemented in the state with the vision to regulate the vast real estate market and to eradicate fraudulent realty sector activities. This act aims to improve transparency in the industry as well as incorporating accountability, financial discipline, and a citizen-centric approach. With the infusion of the RERA Karnataka portal, you can access everything at a sole point. Just explore the RERA Karnataka website

and you will get everything you might be looking for from RERA login Karnataka to the RERA Karnataka project list. 

Objectives of Karnataka RERA

The Karnataka RERA came into existence with the following objectives: 

• To regulate the real estate sector and to boost the promotion mechanism across Karnataka
• For bringing transparency in the overall sale of residential and commercial properties 
• To promote real estate investments, at the same time protecting homebuyer’s interest
• Establishment of an Appellate Tribunal that will be responsible for receiving and resolving complaints
• To put forward a solitary mechanism for quick dispute settlement 

As per the Karnataka real estate regulatory authority, every commercial or residential project must be registered with RERA. Additionally, homebuyers need to make sure that they only purchase RERA-registered projects. It is made mandatory because of the following reasons: 

• Unregistered projects are considered illegal for investments. Additionally, buyers purchasing such properties might have to face future consequences. 
• If you are thinking to go for redressal for an unregistered project in which you have you have recently invested then you are questionable too. 
• Promoters associated with an unregistered property might have to pay an applicable penalty. However, in extreme cases, authorities consider imprisonment or both.

RERA Karnataka Rules and Critical Provisions

Ahead of investing in commercial or residential projects in Karnataka, get familiar with RERA Karnataka rules. Here is the list of notable rules and regulations that an individual must follow to avoid last-minute hassles: 

1. It is mandatory for the developers to sell the property as per a centric parameter that is the carpet area. Selling property based upon a super-built area is not permissible. 
2. As per the RERA officials, the builder has to keep the 70% amount of the received payment in a separate account. Additionally, the developers cannot use this amount in other projects. This amount can be used only for the construction purpose of the same project. 
3. Developers have to submit project-related details on the Karnataka RERA portal on a quarterly basis.  
4. The project plan must comprise of every minute change, made in the ongoing project submitted to the K-RERA officials i.e. Karnataka Real Estate Regulatory Authority.
5. The developer cannot make any change in the project plan without the homebuyer’s consent. 
6. In case if there is any delay in the delivery of the project then the developers are liable to pay 2 percent of the interest rate of the project cost.
7. When any involved party violates the rules mentioned in the RERA Act Karnataka then it might result in imprisonment of one year (agents & buyers). Whereas for developers there are 3 years of imprisonment.
8. In case, if any property damage is recorded within the initial five years, then the builder needs to fix the same within 30 days.
9. At max, developers can only ask for 10 percent of the cost of the project from the homebuyer in terms of advance payment to move forward with the registration process. 
10. Buyers are liable to point out shortcomings if the developer doesn’t offer the promised amenities. This has to be done within 1 year of possession.  

Steps For Project Registration with RERA Karnataka?

With the infusion of the RERA Act 2016, registering upcoming projects with state RERA has become a mandate. Thus, as a builder or developer, before initiating any real estate project you need to register the project with RERA Karnataka. Without exploring further go through the step by step process of project registration with the Karnataka real estate regulatory authority:

• Visit the RERA website Karnataka and refer to the sections mentioned in the top tab including K-REAT, Registration, Services, Complaints, etc. 
• Click on the ‘Project Registration’ tab. A dropdown list will appear encompassing “Project Registration” on the top. 
• Now click on the Project Registration section and you will be redirected to the requisite page.
• A dialog box appears on the screen encompassing checklists of online procedures and necessary documents. Refer to it before moving further with the registration process. 
• After going through the inescapable guidelines, start filling out the application. Select the type of promoter, then enter the email address.
• Click on the “Next” button and fill in relevant promoter details and submit it. 
• Next to this enter the project details and move forward to the document upload. 
• Upload scanned copy of PAN card along with the address proof. Then click on the ‘Next’ tab. 
• After uploading the scanned copies of essential documents click on payment. Choose your mode of payment and pay the applicable registration fee. 
• On the registered number, you will receive the registration confirmation. 

Login to the portal to get the RERA Karnataka project list and determine the projects’ Karnataka RERA status in addition to other details such as project registration number, promoter, certification, and much more. 

Process of RERA Karnataka Login

The process of RERA Karnataka login is quite easy, you just need to explore the RERA Karnataka official website. 

1. From the topmost tab click on the “Login” section. 
2. A drop-down will appear. It further comprises three sections named as 

• Authority Login
• TEMP Login
• Public Login

1. Choose your category and enter the requisite details such as RERA registration number and login credentials. 

If you are a registered user, log in with the credentials else go for new registration. 

In the case of Authority Login the following dialog box appears: 

In the case of TEMP Login the following dialog box appears: 

In the case of Public Login the following dialog box appears: 

How to Register for Karnataka RERA?

To register under RERA Karnataka follow the below-depicted steps in a systematic manner. Start by exploring the official RERA website Karnataka:

Step 1: You will need to go to the RERA login Karnataka website.

Step 2: Go to the Registration tab and click on it, a dropdown menu will appear.

Step 3: Here you will need to select from the following options: Quarterly update, project registration, Apply for extension, Project registration, and change request.

Step 4: It is advised that you carefully go through the checklist and make sure that you have all the documents required.

Step 5: On the resulting page, you need to choose from the following options: Company/trust agents/societies/individual/partnership firm/development authority.

Step 6: You are then required to enter your email address and proceed to register for the project.

Steps To Register As An Agent with RERA Karnataka?

It is inescapable for an agent to work on a real estate project without getting registered with it. Even the promoters need to provide information about the authorized agents for specific projects. Thus, to perform tasks associated with an agent you need to register yourself. Here is a rundown of steps that you will have to follow to become a RERA registered agent with RERA Karnataka. 

1. Visit the Karnataka RERA portal.
2. From the top tab click on “Registration”, followed by a dropdown. 
3. From the dropdown click on the second section named “Agent Registration”
4. Click on it to go further with the agent registration procedure. 
5. You will be redirected to the page encompassing the Agent Registration Form. 
6. Fill in the required details including agent type and email address and then click on next.
7. Next to this, a form shown below appears.
8. Enter the required details and click next.
9. Now, upload the requested documents, and preview your filled form.
10. If everything appears correct, move forward with the payment. Pay the registration fee and wait for confirmation. 

Documents Required for Karnataka RERA Registration

The following are some of the documents that you will be required to furnish during the registration process:

• Basic details about the agency like name, partnership information, business type, address of the business, etc
• Registration details of the firm, including MOA, AOA, etc
• In case the agent is an individual, further details like name, address, and contact details will be required. If an agency is involved, then information and photograph of the Board of Directors is required
• Self-attested copy of PAN card
• Copy of address proof

Karnataka RERA Fees & Charges

The following are some of the fees and charges in accordance with RERA Karnataka rules, depending on the type of project:

Group Housing Projects

Mixed Development Projects

Commercial Projects

Impact of Karnataka RERA on Real Estate Market

The establishment of the Karnataka Real Estate Regulatory Authority has helped clear the sectors of prevailing problems like lack of transparency. One effect it has had on the market is that it has forced developers to deliver on-hold projects, before embarking on new projects. Gradually, the market became more favorable to buyers owing to easier payment models, an increase in accountability for developers, and better credibility. As a testament to the effectiveness of the RERA act, it has to be noted that Bangalore has become one of the most active residential markets over the last 2 years. 

Karnataka RERA Complaints Procedure

In order to file a complaint with the Karnataka Real Estate Regulatory Authority, you will need to fill out form ‘N’. The important thing to be noted is that you will need to pay a fee to register your complaint. If you file a complaint on the RERA Karnataka website, you will need to pay a fee of INR 1000. If you decide to file an appeal with the Appellate Tribunal, then you will have to pay a fee of INR 5000. Given below is the step-by-step process for filing a complaint:

Step 1: You need to go to the RERA complaint Karnataka portal.

Step 2: You need to key in all the required information on the website.

Step 3: Enter the details of the developer/agent that you are filing a complaint against.

Step 4: Upload all the necessary documents that are required to support the complaint that you are filing.

Step 5: Now you need to pay the associated fees and upload the payment challan.

Step 6: Now you can successfully submit your complaint. You will receive a complaint reference number, which will come in handy in the future.

Documents Required for Karnataka RERA Complaint

You will require the following documents for filing a complaint on the Karnataka RERA website:

• Agreement between buyer and builder
• Allotment letter
• Payment receipts
• Building layout
• Cheque details

Impact of RERA on Property Prices in Karnataka

Owing to the flurry of changes from 2016 to 2019(RERA, GST, and demonetization), some localities in Bangalore saw a rise in prices of property, increasing by an average of 11%. This can be attributed to the vast and rapid development of the city. In recent times, the city has attracted investment from various multinational companies and large organizations. This has led to an increase in footfall in the form of a large number of young working professionals. 

Due to the strong demand of the customer base, Karnataka real estate was able to handle the uncertain times with little to no difficulty. Consistency in demand helped in maintaining the developer’s confidence, who abided by ‘ask’ rates in order to keep up with pressurized sales. Even though the developers went to great lengths to hide details regarding upcoming projects, they were inclined to offer huge discounts in order to finish off existing units. As a result of which, a significant change in property prices was not observed due to the establishment of the Karnataka RERA.

Impact of Karnataka RERA on New Launches

Post the implementation of demonetisation, the new real estate launches reported a massive slump, which in turn meant a dip in the supply of new projects. In addition to this, the establishment of RERA meant a drop of 23% in new launches. The new launches were affected for a short period of time, while developers got compliant with the new Karnataka RERA rules and regulations. The developers soon returned with RERA Karnataka registered projects on the city outskirts, in order to meet the growing housing needs. 

The market trend indicated a preference for more affordable and mid-segment homes, as developers adapted in accordance with the new demand from the market. As a result, the majority of new launches in the resulting years have been affordable and mid-segment homes.

Future Challenges

One of the biggest problems of the implementation of Karnataka RERA is the slow registration of projects under the new rules of RERA. Further, there have been many challenges in the execution of orders as released by the Appellate Tribunal. Even though several provisions were set up for the imposition of penalties, registration cancellation, and confiscation of properties, they have failed to be strongly enforced. Further, the authority also faces a massive problem in the form of a shortage of staff. This means that the authority does not have enough manpower to deal with cases or inspect projects.

Benefits for Home Buyers Under Karnataka RERA

The following are some of the benefits that homebuyers enjoy owing to the establishment of the Karnataka Real Estate Regulatory Authority:

• Homebuyers now have access to all the information that they did not have before. They can now use the RERA Karnataka website to look up information like true carpet area of the project, price of the project, number of units in the project, etc
• The price of the property now depends on the carpet area of the project. Unlike like earlier times, the developers cannot now charge the buyers for the total built-up area
• Since the developers now have to keep 70% amount in a separate bank account, the possibility of delay in the project due to lack of funds is drastically reduced
• The developer is now required to make amends in case any defect is found within 5 years of possession
• Any conflict between the buyer and developer now has to be resolved within 120 days
• In the event of delay in delivering the project, then both the buyer and developer have to pay an interest of 2%

Registration Under Karnataka RERA

Karnataka RERA Contact Information

The following are the contact details for Karnataka Real Estate Regulatory Authority:

Address: Silver Jubilee Block, 3rd Cross Rd, Sampangi Rama Nagara, Bengaluru, Karnataka 560002

Phone Numbers: (080) 22249798, 22249799

Email ID: info[dot]rera@karnataka[dot]gov[dot]in

You can look for other details by searching RERA office Bangalore. It will provide you other helpdesk numbers too along with the contact details of the designated persons.

Latest Updates of RERA Karnataka

Real Estate Regulatory Authority of Karnataka Warns Developers of Unfinished Apartment Projects

As per the previous update, 424 projects were offered an extended deadline for project completion considering the COVID-19 outbreak. However, only 51 projects were completed till June 30, 2020. As a result, RERA Karnataka has planned to take a call of action against 373 uncompleted projects and defaulter developers. As per the officials, the homebuyers will no longer have to wait as the authority will be taking strict action to get them completed. If still not delivered the developers will have to compensate the amount to the home buyers. 

RERA Karnataka Extends the Project Deadline for the RERA Registered Projects

Following the steps taken by RERA Maharashtra to deal with the COVID-19 outbreak, the Karnataka Real Estate Regulatory Authority (K-RERA) finally came up with a deadline extension of six months. This extension will be applicable only for the RERA Registered Projects. This step was put forward considering the project delays that took place due to the COVID-19 crisis. The projects, which were supposed to be completed by the first quarter of 2021, have now got extended tenure of 6 months to complete the projects. Although, the new date is yet to be updated on the official RERA website.

Conclusion 

The implementation of the RERA Act in Karnataka has brought transparency during the process of buying and selling properties. Additionally, it has become easier to receive and resolve complaints related to property disputes. Since the developers have to submit the project-related details in RERA, it reduces the chances of potential fraud. Failure to comply with the rules and regulations of RERA also results in potential imprisonment. Hence, it is important to adhere to the guidelines of the RERA Act 2016.

You may also like!

RERA Karnataka FAQs – Frequently Asked Questions

A) The following is how you can check registration status on Karnataka RERA:

• Visit the homepage of the official Karnataka RERA website and click on the ‘Approved Projects’ tab
• Here you will see four tabs namely, ‘Applications under Process’, ‘Applications under Query’, ‘Applications Approved’, and ‘Applications Rejected’
• When you select the ‘Applications Approved’ tab, you will find the details along with the certificate