RERA Karnataka Rules and Regulations: A Complete Guide

The Real Estate (Regulation and Development) Act, or RERA, was established to bring transparency, accountability, and efficiency to the real estate sector. In Karnataka, RERA has been implemented to regulate the real estate market, protecting homebuyers and promoting fair practices among developers. In this guide, we will take a deep dive into the RERA Karnataka rules and regulations that govern the real estate landscape in the state.

What is RERA Karnataka?

RERA Karnataka is the state-specific implementation of the central Real Estate (Regulation and Development) Act, 2016. The RERA Act aims to establish a regulatory framework for residential real estate transactions, ensuring that the interests of homebuyers are safeguarded. It requires developers and builders to register their projects with the Karnataka RERA authority before advertising or selling.

The primary objectives of RERA Karnataka include:

• Transparency: All project details, including layout plans, approvals, and the timeline for possession, must be made available.
• Accountability: Developers are held accountable for timely delivery and the quality of construction.
• Dispute redressal: Homebuyers can approach RERA for resolution in case of delays, defects, or other issues.

Additional Read: Why RERA approved projects are a smart investment option

Key features of RERA Karnataka

The Real Estate Regulatory Authority (RERA) in Karnataka, India has several key features and rules, including:

1. Project registration requirement: One of the most significant provisions under RERA Karnataka is the mandatory registration of real estate projects. Any project with more than eight units or that is being developed on more than 500 square metres of land must be registered with the Karnataka RERA before advertising or selling.

2. Project information disclosure: Builders and developers are required to disclose key project details, including the following:

• Project completion timelines
• Approved building plans
• Land title details
• Number of units available for sale
• Financial statements of the developer

This ensures that homebuyers can make informed decisions and are aware of the project’s authenticity before making a commitment.

3. Builder's liability: Developers are responsible for ensuring that the project is completed within the agreed-upon timeline. If a builder delays the possession of a property, they are liable to compensate the buyers with interest. They are also responsible for fixing defects in the property within a specific period (usually 5 years).

4. Promoter’s responsibility for sale agreements: The sale agreements must be registered with the RERA authority. These agreements outline the terms and conditions between the buyer and the developer, ensuring that both parties are protected under the law. It also provides clear timelines for possession and any penalties for non-compliance.

5. Project delays and penalties: If a developer fails to deliver the project on time, the buyer is entitled to a refund with interest or possession within a revised timeline. Developers may also face penalties for non-compliance with RERA provisions, including fines and possible suspension of their registration.

6. Defects in construction: Under RERA Karnataka, the developer is required to fix any structural defects or poor-quality construction within 5 years of possession. The developer must repair such defects without any cost to the buyer. This ensures that homebuyers get value for their money and helps prevent cases of substandard construction.

7. Consumer redressal mechanism: If a homebuyer faces issues with the project or developer, they can approach the RERA authority for resolution. Karnataka RERA has a Consumer Grievance Redressal Forum, where buyers can file complaints related to delays, project quality, or fraud.

8. Advance payments and escrow account: RERA Karnataka mandates that developers open an escrow account, where they must deposit 70% of the buyer’s advance payment. This money can only be used for the specific project for which it was received. This rule protects buyers from fraudulent developers and ensures that their funds are used appropriately.

9. Homebuyer’s rights: Homebuyers in Karnataka are entitled to:

• Timely delivery of possession
• Complete details of the property and project
• A clear agreement with all terms, conditions, and timelines
• Compensation for delayed delivery or defects

How RERA Karnataka affects homebuyers

RERA Karnataka provides several protections for homebuyers. Here is how it impacts them:

• Transparency in project information: Homebuyers can access detailed project information through the Karnataka RERA portal. Before purchasing a property, they can verify the status of the project, its legal approvals, and expected completion dates.
• Timely possession and delivery: Developers are held accountable for timely possession. If there are delays, homebuyers are entitled to compensation in the form of interest or the option to cancel the agreement.
• Protection from fraudulent practices: One of the biggest benefits of RERA Karnataka is that it shields homebuyers from fraudulent builders. With the mandatory registration of projects and builders, buyers can ensure that the property they are investing in is legitimate.
• Legal recourse for defects: In case of defects in the construction, buyers can approach RERA for resolution. Builders are legally bound to repair structural defects within five years, ensuring homebuyers do not face issues with their property.

How to check RERA Karnataka project details

Checking project details on the Karnataka RERA portal is simple:

• Visit the official Karnataka RERA website.
• Navigate to the “Registered Projects” section.
• Use the search tool to find the specific project by name, registration number, or location.
• The website will display all relevant information about the project, including registration status, builder details, project timeline, and more.

RERA Karnataka’s role in the home loan process

RERA Karnataka plays an important role in the home loan process. Banks and financial institutions require RERA registration details to process home loan applications. When you apply for a home loan to buy a property, the lender will verify the legitimacy of the project. If the project is registered with Karnataka RERA, it gives both the lender and the buyer confidence that the project is authentic and will be completed on time.

Additionally, homebuyers can use the Karnataka RERA portal to check if a property is compliant with RERA rules. This adds an extra layer of security for buyers, ensuring they are investing in a legitimate property.

Additional Read: How to file a RERA complaint online

Explore Bajaj Housing Finance Home Loan

If you are looking for a home loan to invest in a RERA-registered property, consider Bajaj Housing Finance Home Loan. Bajaj Housing Finance offers competitive interest rates, flexible repayment options, and a seamless online application process.

Here are a few benefits of opting for a Bajaj Housing Finance Home Loan:

1. High loan amount: Secure a home loan of up to Rs. 15 crore* to bring your dream home to life.

2. Low interest rates: Enjoy interest rates starting 7.99%*  p.a., and EMIs as low as Rs. 722/lakh*.

3. Quick approval: Get approved within 48 Hours* of applying – sometimes even sooner.

4. Flexible repayment tenure: Choose a repayment term of up to 32 years for comfortable EMIs.

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6. Balance transfer facility: Move your existing home loan and get a top-up loan with better terms.

Choose Bajaj Housing Finance Home Loan and turn your dream of owning a home into a reality.