RERA and Real Estate Laws and Compliance
Understanding RERA and Real Estate Laws in Bengaluru
The real estate sector in Bengaluru, much like the rest of India, has undergone significant regulatory transformation. At the forefront of these changes is the Real Estate (Regulation and Development) Act, 2016 (RERA), which has been instrumental in bringing transparency, accountability, and consumer protection into the industry. Coupled with other state and national laws, the real estate sector now offers more security to both homebuyers and developers. Let’s explore how RERA and other key real estate-related laws function in Bengaluru.
What is RERA?
The Real Estate Regulatory Authority (RERA) was established under the RERA Act, 2016, with the aim of regulating and promoting the real estate sector. It seeks to protect the interests of homebuyers, ensuring timely delivery of projects, quality construction, and transparency in transactions.
In Bengaluru, RERA Karnataka ensures that developers adhere to strict guidelines. Some of its key mandates include:
Project Registration: Every real estate project must be registered with RERA, providing complete details of the project, such as timelines, approvals, and the status of land ownership.
Buyer Protection: RERA empowers buyers to access project details, including timelines, layout plans, and phases, which reduces the chances of being misled.
Grievance Redressal: Buyers can file complaints against builders in case of non-compliance, delayed possession, or any contractual violations.
Key Provisions for Homebuyers in Bengaluru under RERA
1- Timely Delivery: Builders are now legally bound to deliver projects within the stipulated time, failing which they are liable to pay penalties.
2- No False Advertising: Developers are required to advertise only those projects that have the necessary approvals. False claims can lead to penalties or even cancellation of the project.
3- Advance Payment Limit: Builders can only ask for up to 10% of the property cost as an advance before signing the sales agreement.
4- Standardized Sale Agreement: The terms of the sale agreement are now standardized, leaving no room for ambiguous clauses that favor developers.
Other Key Real Estate Laws in Bengaluru
Besides RERA, several other laws govern real estate compliance in Bengaluru:
1- Bangalore Development Authority (BDA) Regulations: The BDA oversees urban planning and infrastructure development in Bengaluru. It ensures that the city’s development is structured and that land is used in accordance with zoning regulations. The BDA also grants approvals for layouts and construction permits.
2- Karnataka Ownership Flats Act (KOFA), 1972: This Act aims to regulate the promotion, construction, and sale of apartments. It mandates the developer to disclose all critical details about the building and ensures that the buyer has a clear title to the property. KOFA complements RERA by safeguarding buyers’ interests in apartment sales.
3- Karnataka Land Revenue Act, 1964: For any real estate project, clear land titles are crucial. The Karnataka Land Revenue Act deals with land records and ownership disputes. It also regulates the conversion of agricultural land for non-agricultural purposes, a common requirement in urban real estate development.
4- Stamp Duty and Registration Act: Property transactions in Bengaluru are subject to Stamp Duty, which is paid during the sale or transfer of a property. The rate of stamp duty varies based on the value of the property, and registration is mandatory to legally transfer ownership.
5- Building Bye-Laws: Bengaluru’s real estate development is guided by Building Bye-Laws that lay down rules for floor area ratio (FAR), setbacks, building height, parking spaces, and environmental regulations. These laws ensure that the city’s infrastructure is sustainable and organized.
Compliance for Developers
For developers in Bengaluru, adhering to both RERA and state laws is crucial. This includes:
Clear Title Deeds: Ensuring that the land is free from encumbrances and disputes.
Approval of Layouts: Getting BDA or BBMP approval for project layouts.
Environment Clearances: Projects above a certain size may need to seek environmental clearances from the State Pollution Control Board.
Regular RERA Updates: Developers must regularly update the RERA portal with project progress, ensuring transparency with homebuyers.
Conclusion
With laws like RERA and state-specific regulations, real estate transactions in Bengaluru have become more streamlined and secure. Homebuyers now have the legal backing to ensure that their investments are protected, while developers are held accountable for timely delivery and project transparency. This regulatory framework is instrumental in boosting trust and growth in Bengaluru’s ever-expanding real estate market.
If you’re considering buying or investing in real estate in Bengaluru, staying updated on RERA compliance and local laws can go a long way in ensuring a smooth and secure property purchase.
