Status as on 10/10/2019
Introduction
The Real Estate Regulation and Development Act (RERA) to improve the responsibility and accountability towards consumers RERA has mandated real estate promoters developers (promoters) to register the project and to obtain a valid registration number before proceeding the work. The promoter will not be permitted to market, advertise or sell the units before the RERA Project registration. In case the project is to be developed in phases, the promoter has to obtain registration for each phase separately.
Who needs to Register under the Act?
The specified persons are required to register the real estate project with authority are as follows:
- Any person who constructs or who wants to builds an independent building or a building consisting of apartments or modification of existing structure into apartments to sell apartments to the persons.
- Any person who develops the land into a project, to sell projects to other persons.
- Any development authority or another public body in respect of allottees.
- Buildings or plots constructed by such authority or public body on who owns land or placed at their disposal by the government.
- Plots owned by development authority or which is placed at their disposal by the government to sell the apartments.
- A state-level cooperative housing finance society and a primitive cooperative housing society that constructs the apartments or buildings for its members or to the allottees.
- Any person who acts himself as a builder, colonizer, contractor, developer, estate developer or by any different name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale.
Real Estate Projects Registration
All residential and commercial real estate projects will have to be registered with RERA. The key essentials are:
- Area of the land proposed to be developed is more than five hundred square meters
- More than eight apartments including of all phases
- The promoter has not received a completion certificate for a real estate project/phase of the project before the initiation of this act.
- Any alternation or deed in the real estate project which involves advertising, marketing, selling or new allotment of an apartment, and plot or building.
Penalty for Non-Registration of Projects
In case of non-registration of the Karnataka real estate project, under Section 59 imposes a penalty of up to 10% of the estimated project cost and in case of continued default, an additional fine up to 10% of the expected project cost or imprisonment up to three years or both.
Conclusion
Thus, it is clear that in case any developer wishes to do any sort of development the same has to be governed by the provisions of the RERA Act and the same is mandatory in nature. Therefore, seeking RERA Registration for the project is compulsory and in case the same has not complied with the RERA Authorities can impose penalties as listed above. Also, as a homebuyer in case, the project isn’t RERA Registered you can approach the concerned RERA Authority for initiating a complaint against the concerned developer for non-registration.
Disclaimer – The above article is based on the personal interpretation of related laws and judicial pronouncements, which may differ from person to person. The readers are expected to take expert opinion before placing reliance on it. For any clarification, please write back at support@centrik.in or call at 8383011629
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