JOIN USKarnataka RERA tightens rules for property developers
Karnataka Real Estate Regulatory Authority (KRERA), as part of its efforts to bring more transparency in the real estate development as well as protect the interests of home buyers, has directed property developers to prominently mention the RERA registration number in all print advertisements for new projects. It has also directed builders to register the names of landowners compulsorily.
The builders will have to mention the registration numbers in the top right corner of their newspaper advertisements and also on outdoor hoardings, FM Radio and through SMS or the electronic media. The size of the lettering and numbering used for this shall be not less than half of the font used for the name of the project in the said advertisement, KRERA Secretary said in a circular issued last week.
KRERA has also made it mandatory for builders to mention the KRERA website address - www.rera.karnataka.gov.in in their advertisements. It has also prevented the real estate developers from mentioning any disclaimer clause stating that the information is subject to change. The length and breadth of the "RERA Registered" information must not be less than 10% of the length and breadth (whichever is higher) of advertisement issued in print media, it said.
In advertisements on FM Radio or through electronic media and SMS, the registration number issued by the KRERA shall be prominently mentioned. Alternatively, if completion certificate was applied before July 11, 2017 has been obtained, the same has to be mentioned in the advertisement, the circular said. The builders have also been advised to mention the KRERA registration number in the display board installed at the site.
"This direction is for the information of all the concerned, and for strict compliance by all promoters and their agents, failing to which action will be initiated under the provisions of the Real Estate (Regulation and Development) Act, 2016 and the Karnataka Real Estate (Regulation and Development) Rules 2017," K S Latha Kumar, Secretary, KRERA said in the circular dated November 14, 2019.
The new directions have been issued by RERA in exercise of powers under Section 37 of the Real Estate (Regulation and Development) Act, 2016.
In another circular issued on October 31, 2019, the KRERA has directed the builders to mention the names of the land owners as developer/promoter when a real estate project is taken up jointly with the land owner at the time of online registration with the Karnataka Real Estate Regulatory Authority.
Further, the developer/promoter shall register his project including the share of the landowner/promoter and to monitor the transaction to be done by the landowner/promoter to comply Section 4 (2)(1)(D) and also Rule 15. A copy of the written agreement or arrangement between landowner/promoter which clearly specifies and details the rights and shares of each promoter should be uploaded on the KRERA website, along with other details for public viewing, the circular said.
The landowner/promoter and developer/promoters are also directed to submit a joint affidavit as prescribed by the authority and the landowner/promoter shall be answerable to the claim regarding the title over the land involved in the project as well as any claim pertaining to the real estate project, the circular said.
In addition to this, KRERA also said that the developer/promoter shall be liable to provide the details of transaction carried out by the landowner/promoter before obtaining the completion certificate/occupancy certificate for his project and the developer/promoter shall ensure by asking the landowner/promoter to deposit of 70% of the sale proceeds realised from the allottees of landowner share (in case of area sharing) to the designated account of the real estate project in case the landowner/promoter does the transaction before obtaining the Completion Certificate/Occupancy Certificate.