Investing in a plot in Bangalore is a significant decision, offering the promise of building a dream home or securing a valuable asset. However, the real estate landscape has its complexities, and ensuring a safe and transparent transaction is paramount. The Real Estate (Regulation and Development) Act, commonly known as RERA, was enacted to bring transparency, accountability, and efficiency to the real estate sector. For plot buyers, understanding RERA’s provisions is crucial to making informed decisions and safeguarding investments.
What is RERA?
The Real Estate (Regulation and Development) Act, 2016, is a landmark legislation enacted by the Indian Parliament to regulate the real estate sector. Its primary objectives include
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Ensuring transparency in project marketing and execution.
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Protecting the interests of homebuyers.
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Establishing a regulatory authority in each state.
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Providing a mechanism for speedy dispute resolution.
In Karnataka, the act is implemented through the Karnataka Real Estate Regulatory Authority (KRERA), which oversees real estate transactions within the state.
Applicability of RERA to Plots
RERA applies to all real estate projects, including plotted developments, that meet certain criteria:
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Land Area: Projects involving the development of land exceeding 500 square meters.
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Number of Units: Projects comprising more than eight plots.
Developers undertaking such projects are mandated to register with KRERA before advertising or selling plots. This registration ensures that the project complies with legal and regulatory standards, providing buyers with a layer of protection.
Benefits of RERA for Plot Buyers
1. Transparency in Project Details
KRERA mandates developers to disclose comprehensive project information, including:
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Project layout and sanctioned plans.
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Land title and legal status.
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Schedule of project completion.
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Details of approvals and permissions.
This transparency enables buyers to make informed decisions and reduces the risk of fraud.
2. Protection Against Delays
Developers are required to adhere to the project timeline as declared during registration. In case of delays, buyers are entitled to compensation, ensuring accountability.
3. Standardized Agreements
RERA mandates the use of standardized sale agreements, minimizing ambiguities and protecting buyers from unfair terms
4. Grievance Redressal Mechanism
KRERA provides a platform for buyers to file complaints against developers for non-compliance, delays, or other grievances. The authority is obligated to address these complaints within a stipulated timeframe.
Legal and Technical Considerations for Plot Buyers
1. Verification of RERA Registration
Before purchasing a plot, verify the project’s RERA registration status on the KRERA official website. Ensure that the developer has complied with all registration requirements
2. Due Diligence on Land Title
Obtain and review the title deed to confirm the seller’s ownership and the absence of legal encumbrances. An Encumbrance Certificate (EC) can be procured from the sub-registrar’s office for this purpose.
3. Approval of Layout Plans
Ensure that the layout plan has been approved by the relevant planning authority, such as the Bangalore Development Authority (BDA) or the Bangalore Metropolitan Region Development Authority (BMRDA).
4. Khata Certificate
A Khata certificate is essential for property registration and tax assessments. Confirm that the plot has a valid Khata issued by the local municipal body.
5. Zoning Regulations
Verify that the plot is designated for residential use and complies with local zoning regulations. This information can be obtained from the local planning authority.
Recent Developments in KRERA
KRERA has been proactive in enforcing compliance and protecting buyer interests. Notable developments include:
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Exemption for Projects with Prior Occupancy Certificates: Projects that applied for Occupancy Certificates (OC) before the implementation of RERA are exempt from registration.
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Penalties for Non-Compliance: KRERA has imposed penalties on developers for delays and non-disclosure of project information, reinforcing the importance of adherence to regulations.
Conclusion
Understanding RERA’s provisions is crucial for anyone considering the purchase of a plot in Bangalore. The act offers a framework that promotes transparency, accountability, and buyer protection. By ensuring that the plot is part of a RERA-registered project and conducting thorough due diligence, buyers can mitigate risks and make informed investment decisions.
Need Assistance?
For personalized guidance and assistance in verifying land documents in Bangalore, feel free to contact us at 9123466308. Our team at Plotsure is dedicated to ensuring your land purchase is legally sound and hassle-free.
