In Karnataka, it is now mandatory to get the property registered with the state RERA authority. The state government banned all sub-registrar offices under its vicinity from registering flats or plots along with any new real estate project in case the buyer or the seller does not quote a RERA registration number.
KV Trilok Chandra, the inspector general of registrations and commissioner of stamps said that the number is compulsory to fix guidance value of a property as it is required to valuate stamp duty and registration fee. A registration procedure can’t be completed without fixing a guidance value.
This decision by the State Government came after being pressurized by the homebuyers to regulate the sector. There are many faulty developers in the state who are selling properties without getting them registered according to the law. The Karnataka RERA has initiated stringent actions against such players. Till now nearly 1,600 projects and 3,000 agents are registered under Karnataka RERA since the act was implemented in the state in July last year.
MS Shankar, RERA activist and secretary of Fight for RERA-Forum for People’s Collective Efforts said that the new rule will work in favour of consumers. The compulsion to make RERA number will protect home buyers from purchasing an illegal property and will also make developers to register their projects including the ongoing one as this will protect the right of consumers.
The state cabinet is also likely to sanction a draft of an agreement of sale (AoS) specified in the Act. The demand for the same is pending from a long time. AoS will be a standard format all property registrations once it gets sanctioned. This format clearly mentions the carpet area, super-built-up area and other property details which is helpful to the buyer.