It is now illegal to buy or sell property that is not registered with RERA, the real estate regulatory authority. The state government has banned all sub-registrar offices in the state from registering flats or plots whether an ongoing or new project — if buyers/sellers do not quote a RERA registration number. “The number is mandatory to fix guidance value of property as it is necessary to evaluate stamp duty and registration fee,” KV Trilok Chandra, inspector general of registrations and commissioner of stamps. “Without fixing a guidance value, registration cannot happen.”
The government’s decision comes after intense pressure from homebuyers to regulate the sector. Several unscrupulous builders and developers were selling properties without getting projects registered with Karnataka RERA, even though the authority had initiated punitive steps against such players. Currently, only about 1,600 projects and 3,000 agents have registered under RERA in the state after the Real Estate (Regulation and Development) Act was implemented in July last year. “The new rule will go a long way in protecting the interests of consumers,” said MS Shankar, RERA activist and secretary of Fight for RERA-Forum for People’s Collective Efforts. “Builders can no longer dupe buyers by surreptitiously selling half-built flats and getting the property registered in the name of consumers. Making RERA numbers mandatory will also force builders to register ongoing projects with RERA. This will protect consumers in case of a problem.” The state cabinet is also expected to approve a model draft of an agreement of sale (AoS) specified in the Act. The demand for one has been long-pending. “Once approved by the cabinet, the AoS will be a standard format for all property registrations.”
Courtesy/By: Shubham Mathur
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25 Nov 2018
