Karnataka RERA Registration for Projects
Karnataka RERA Registration for Projects
To improve the responsibility and accountability towards consumers, the Real Estate Regulation and Development Act (RERA) has mandated real estate promoters developers (real estate developers) to register the project and to obtain a valid registration number before proceeding the work. The promoter will not be permitted to market, advertise or sell the units before the RERA Project registration. In case the project is to be developed in phases, the promoter has to obtain registration for each phase separately. In this article, we will look at the procedure for obtaining Karnataka RERA registration for Projects in detail.
Know more about RERA Registration for Project
Real Estate Regulation and Development Act (RERA)
The Real Estate Regulation and Development Act (RERA), 2016 is considered as one of the landmark legislation passed by the Central Government. Its key objective is to reform the real estate sector in our country, encouraging greater transparency, citizen centricity, accountability and financial discipline. RERA is in line with the vast and growing economy of India as in future; many people will be investing in the real estate sector.
Real Estate Projects Registration
All residential and commercial real estate projects will have to be registered with RERA.
- Area of the land proposed to be developed is more than five hundred square meters
- More than eight apartments including of all phases
- The promoter has not received a completion certificate for a real estate project/phase of the project before the initiation of this act. If the certificate is not obtained, the promoter has to pay the penalty which will extend up to ten percent of the estimated cost of the real estate projects. If the promoter violates the rules continuously, then he will be punishable with imprisonment up to three years (3 years) or with a fine which will extend up to a further ten per cent of the estimated cost of the real estate project or both
- Any alternation or deed in the real estate project which involves advertising, marketing, selling or new allotment of an apartment, and plot or building
Function of Promoter
According to RERA act the function and duties of promoters are explained in detail below:
- Disclosing all the information about the project;
- Adherence to approved plans and projects specifications as approved by competent authorities;
- Rectification of structural defect within two years of possession.
- Obligations regarding the veracity of the advertisement
- Refund of money in cases of default notification
Applicable Fee
The fee structure for obtaining the Karnataka RERA registration for Projects is described below:
According to RERA act, the promoter should compulsorily deposit 70 percent of the amounts realised for the real estate projects from the allottees in a separate account in a scheduled bank within fifteen days to cover the cost of constructions.
- Within three months of the application for project registration with the Authority, the Promoters are to deposit in separate bank accounts, 70% of the amounts already realised from the allottees.
- In case the receivable of the ongoing project is less than the estimated cost of balanced construction, then the promoter has to deposit 100% of the amounts to be realised in the separate account.
Project Registration Fee
To conduct the real estate business, the developer has to pay the registration fee while applying for registration of the project with the RERA authority. They can pay the registration fee through online payment mode.
Housing project
In the case of a group housing project, the following is the fee structure:
- Rs 5 per square meter – If the area of land proposed to be developed does not exceed 1000 square meters
- Rs 10 per square meters – For projects where the area of land proposed to be developed exceeds 1000 square meters.
- In the case of mixed development (residential and commercial) projects
- Rs 10 per square meters- For projects where the area of land proposed to be developed do not exceed 1000 meters
- Rs 15 per square meter – For projects where the area of land proposed to be developed exceeds 1000 square meters
Commercial projects
In the case of commercial projects, the following is the fee structure:
- Rs 20 per square meters- For projects where the area of land proposed to be developed does not exceed thousand square meters
- Rs 25 per square meter (capped up to Rs. 10 lakhs) – For projects where the area of the property proposed to be developed exceeds one thousand square meters.
- In the case of plotted development projects
- Rs 5 per square meter, but capped to Rs. 2 lakhs
Documents Required
The promoters will have to furnish the following information and documents for registration of a real estate project with the regulatory authority:
- Self-attested copy of the promoter PAN card of the promoter
- Annual reports – Audited profit and loss account balance sheet, cash flow statement, director’s reports and the auditor’s report of the promoter for the immediately preceding three financial years
- Number of parking slots available in the real estate projects
- Authenticated copies of the of the legal title deeds reflecting the title of the promoter to the lands on which the development of the project is proposed along with legally valid documents for a chain of the title;
- The details of encumbrances on the property for which permission is given under section 109 of the Karnataka Land Reforms Act, 1961
- The Certified copy of the conversion order as per section 95 of the Karnataka Land Revenue Act, 1964
- The permission of change in land use granted under section 14 of the Karnataka Town and Country Planning Act, 1961, on which development is proposed including any rights, title, interest or name of any party in or over such lands along with details;
- If the developer is not the owner of the land on which development is proposed, details of the consent of the owner along with the self-attested collaboration agreement, development agreement, joint development agreement or any other agreements.
- The copies of the title and other documents reflecting the title of such owner on the land proposed to be developed;
- If the promoter is an individual, Name, photograph, contact details and address of the promoter are required
- The name, photographs, contact details and address of the chairman, partners, directors and the authorized person is required in case of other entities.
Note: In accordance with the RERA Rules, the Promoters of ongoing projects which have not received completion certificate have to make an application to the Regulatory Authority in the prescribed format.
Procedure for RERA Project Registration
The procedure for RERA registration in Karnataka is explained in step by step procedure here:
Step 1: Access the home page of Real Estate Regularity Authority of Karnataka. From the home page, select the project registration option.
Step 2: The registration form will be displayed, selects the promoter type such as Individual /Society or Company etc.
Step 3: Enter your mail ID, by clicking on the next button; the promoter detail page will be displayed.
Promoter Details
Step 4: If the promoter is an Individual provide details such as Name, Fathers name, PAN number, Aadhaar Number, Mobile Number, Telephone Number, Address and Photograph.
Step 5: If the promoter type is Company/Firm, provide detail of the type of promoter Name, Pan No., Email, Mobile Number, Address and Company registration number.
Step 6: Furnish previous project details such as Project Name, Project Description, Current Status, Type of Land, Any pending case, any payment pending and Address.
Step 7: After furnishing all the details as mentioned above, click on the next button. You can now provide details of the project
Project Details
Step 8: In this section, you need to furnish details of the project name, project description, Project Type, Project Status, Project start date and end date, Total area of land, Total covered area, Total open area, Estimated cost of construction and Cost of land.
- Project Ongoing Status Details (Promoter-Company/Firm
- Development Details for Registration if Applicable
- Internal Development Work for Registration
- Other External Development Works if Applicable
- Project Bank Details for Registration
- Project Agent Detail for Registration if Applicable
- Project Architect Detail for Registration if Applicable
- Project Structural Engineer Detail for Registration if Applicable
- Project Contactor Detail for Registration if Applicable
Upload documents
Step 9: As per the important document checklist file, upload all supporting documents. After uploading the documents, click on the save button.
Make Payment
Step 10: Once the documents are uploaded, click on ‘Click here for Online Payment’ option, it will redirect to Treasury Unified Gateway.
Step 11: In Treasury Unified Gateway, select the only E-Payment option.
Note: RERA will accept payment only through E-Payment.
Step 12: In Treasury Unified Gateway, for E-Payment option, select Net Banking Option.
Step 13: In Treasury Unified Gateway, for Net Banking option, select the listed banks.
NOTE: Payment can be only made from the listed banks.
Step 14:: In Treasury Unified Gateway, based on bank selected, it will be redirected to the bank partner portal.
Step 15: On successful payment from the bank partner, the below page will appear, here you can download the receipt for reference and click on redirect to the merchant site.
Step 16: On successful payment it will redirect to RERA portal, click on redirect to complete the registration process.
Get Registration Number
Step 17: On successful payment, you can submit the registration to generate their Acknowledge number. Keep this number safe for future reference.
Penalty for Non-Registration of Projects
In case of non-registration of the Karnataka real estate project, under Section 59 imposes a penalty of up to 10% of the excepted project cost and in case of continued default, an extra fine up to 10% of the expected project cost or imprisonment up to three years or both.
