K-RERA approaches state govt to approve model sales agreement

The Karnataka Real Estate Regulatory Authority (K-RERA) has approached the state’s housing department to finalise the model sales agreement as per central government rules.

The K-RERA that started functioning two years ago had faced delay in model sales agreement due to change in government and the absence of RERA chief in the state.

“The model sales agreement has been sent to the government and is expected to be notified soon. There were objections that has been looked into before sending to the state,” said MR Kamble, chairman K-RERA.

As per the model sales agreement on the K-RERA website, builders will have to convey the final carpet area to the buyer after the construction of the building is complete and the occupancy certificate is granted by the competent authority. “Builders will have the right to forfeit the booking amount in case of cancellation by home buyers but has to finish the project on timely manner,” it said.

For home buyers, the model agreement says that buyers can ask for refund if there is default on the part of the builder and stop the payment amongst other benefits.

The Karnataka government notified Karnataka Real Estate (Regulation and Development) Rules-2017 in the state gazette in July 2018 with the setting up of Karnataka RERA.

According to Anarock research, among all states and UTs across the country, RERA has been fairly pro-active in states such as Uttar Pradesh, Maharashtra and Karnataka, among others. Individually, Karnataka RERA has seen 33% jump in project registration since October 2019 – from 2,906 projects registered in early October 2019 to nearly 3,871 projects as on date.

“Among the nature of complaints largely seen in Karnataka, late delivery of projects tops the list for which errant builders have been asked by concerned RERA authorities within the state to pay compensation to aggrieved homebuyers. Despite this, many such builders have failed comply. Hence, authorities have further directed their revenue department team to issue show cause notices to the errant builders for property attachment,” said Anuj Puri, chairman, Anarock Property Consultants.

As far as registering complaints and resolving them is concerned, as many as 3,950 complaints have been registered under Karnataka RERA till date (March 2020) out of which nearly 46% cases (or approx. 1,817 cases) have already been disposed of. Back in October 2019, the tally of disposed of cases was nearly 1,513 cases.

However, as far as disposing of complaints is concerned, Karnataka still lags far behind its immediate neighbour Maharashtra, where RERA has been significantly active. Out of the total 10,814 complaints registered under Maha RERA till date, a whopping 72% cases have already been disposed of by the concerned authorities.

Source: https://www.constrofacilitator.com/k-rera-approaches-state-govt-to-approve-model-sales-agreement/