An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority.
The Act will also apply to projects that are ongoing on the date of commencement of the Act and completion certificate has not been issued. Real Estate Regulation and Development (RERA) Act 2016 is considered as one of the landmark legislations passed by the government of India.
The bill got approval of the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.The Act came into force on 1 May 2016 with 59 of 92 sections notified. Remaining provisions came into force on 1 May 2017. The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months.
The Department of Housing, Government of Karnataka is the nodal department for the implementation of RERA Act in the state of Karnataka.
Under the RERA Act, the Karnataka Real Estate Regulation and Development Rules, 2017 was approved by Government of Karnataka and notified on July 10, 2017. 3278 projects have been applied for Registration as on 26/06/2019.
Projects which are exempt from the ambit of the Act:
As per section 3 (2) the following projects do not require to be registered under the Act:
(a) where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight, inclusive of all phases;
(b) where the promoter has received completion certificate for a real estate project prior to commencement of this Act;
(c) for the purpose of renovation or repair or re-development which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building, under the real estate project.
Registration of Real estate Project with the regulatory authority
Promoters will have to furnish the following information and documents for registration of a real estate project with the regulatory authority:
Act has provided opportunity to have its own Regulatory Authority (RA) that will frame rules and regulations which helps real estate market to get back on the growth track. RERA will protect the rights of the consumer and will help building trust in direct investment in Real Estate that result in attracting more domestic and foreign investors.