-Hitendra V Hiremath
This article underlines in brief the essential information and documents required to register the real estate projects situated in the State of Karnataka. Section 4 of the Real Estate (Regulation and Development) Act, 2016 along with Rule.3 and Sub-rule 2 of Rule 4 of Karnataka Real Estate (Regulation and Development) Rules, 2017 stipulates the essential documents along with other information to be provided for registration of a new and ongoing project.
INFORMATION AND DOCUMENTS TO BE PROVIDED FOR NEW PROJECTS
As per Section.4(1) of the Real Estate (Regulation and Development) Act, 2016 the promoter shall make an application to the authority within such time with the prescribed fee to the Authority along with the necessary documents as stipulated under Section.4(2) of the Real Estate (Regulation and Development) Act, 2016, the documents can be broadly classified into
(1) Title Deeds along with Revenue Documents;
(2) Approvals, NOC’s;
(3) Financial Information, Documents;
(4) KYC Documents of Promoter and/or Entity; and
(5) Other Information relevant to project
Following are the necessary documents and information to be provided:
- Details of the enterprise, with name, registered address, type of enterprise and name, photographs of promoter.
- Details of the projects being launched in past five year, the stage of project along with details of any pending litigations and delay in completion of projects
- Approvals and commencement certificate, if the project is phase wise then separate set of approvals and commencement certificate for such phases.
- sanction plan, layout plan along with the specifications for the project
- the manner in which development shall be executed and proposed facilities to be provided thereof including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy;
- location and clear demarcation of the boundaries of the project along with longitude and latitude.
- proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees;
- total number of apartments with carpet area and type along with exclusive balcony or verandah and area of open terrace areas for sale in the project.
- Total number of garages and area thereof for sale in the project.
- Name along with addresses of the real estate agents for the proposed project.
- the names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project;
- a declaration supported an affidavit signed by promoter or any person authorized by the promoter stating that he has legal title over the land were project is being developed or authentication of title of land owner if the land is in the name of other person. The declaration also needs to cover that land is free from any encumbrances, if there are any encumbrances the same has to included, the declaration needs to timeline of completion and undertaking that seventy percent of amounts collected shall be deposited in another account.
Along with the aforementioned documents and information, the Promoter as per the Rule 3 of Karnataka Real Estate (Regulation and Development) Rules, 2017 has to provide the additional information and documents, following are the necessary documents to be provided:
- self attested copy of the PAN card;
- annual report including audited profit and loss account, balance sheet, cash flow statement, directors report and the auditor’s report of the promoter for the immediately preceding three financial years; and where annual report is not available, then
- audited profit and loss account
- balance sheet
- cash flow statement and
- the auditor report of the promoter for the immediately preceding three financial years;
- the total number of parking slots available in the project;
- Copy of legal title deed reflecting the title of the promoter along with other necessary documents to prove the legal chain of the title.
- Encumbrance Certificates
- Conversion Order along with Official Memorandum copy of change in land use.
- Details of encumbrances on the land for which permission given under section 109 of the Karnataka Land Reforms Act, 1961 if applicable.
- Joint Development Agreement, Collaboration Agreement or any other Agreement if promoter is not the owner.
- name, photograph, contact details and address of the promoter if it is an individual and the name, photograph, contact details and address of the chairman, partners, directors, as the case may be, and the authorized person in case of other entities.
The prescribed fee to be paid to the Karnataka Real Estate Regulatory Authority by the promoter is as mentioned under sub rule 3 of Rule 3 of Karnataka Real Estate (Regulation and Development) Rules, 2017 and the fee is different for housing project, mixed development (residential and commercial) project, commercial and plotted project.
The registration fee can be paid by way of demand draft or a banker’s cheque drawn on any scheduled bank or a Co-operative Bank or through online payment. It’s to be noted that Karnataka Real Estate Regulatory Authority presently accepts the registration fee through online payment only.
INFORMATION AND DOCUMENTS TO BE PROVIDED FOR ONGOING PROJECTS
Let’s first understand the definition of the ongoing projects, as per the Real Estate (Regulation and Development) Act, 2016 and Karnataka Real Estate (Regulation and Development) Rules, 2017.
The Ongoing projects as defined under the Real Estate (Regulation and Development) Act, 2016 states that the projects which are ongoing on the date of the commencement of the Act and for such projects the completion certificate has not been issued, the promoters shall make the application to the authority within a period of three months from commencement of the Act.
Further, the Ongoing Projects are defined well under Explanation to Sub rule 1 of Rule 4 of Karnataka Real Estate (Regulation and Development) Rules, 2017 defines, “Ongoing Project” means a project where development is going on and for which completion certificate has not issued but excludes such projects which fulfill any of the following criteria on the date of notification of these rules, namely:
- in respect of layouts where the streets and civic amenities sites and other services have been handed over to the Local Authority and Planning Authority for maintenance;
- in respect of apartments where common areas and facilities have been handed over to the registered Association consisting of majority of allottees;
- where all development works have been completed as per the Act and certified by the competent agency and sale/lease deeds of sixty percent of the apartments/houses/plots have been registered and executed;
- where all the development works have been completed as per the Act and certified by the competent agency and application has been filed with the competent authority for issue of completion certificate/occupation certificate; and
- where Partial occupancy certificate is obtained to the extent of the portion for which the partial Occupancy Certificate is obtained
Following are the additional disclosure to be made by promoters as per Rule 4 of Karnataka Real Estate (Regulation and Development) Rules, 2017 in addition to the documents and information as provided under the rule 3:
- the original sanctioned plan, layout plan and specifications and the subsequent modifications carried out, if any, including the existing sanctioned plan, layout plan and specifications;
- the total amount of money collected from the allottees and the total amount of money used for development of the project including the total amount of balance money lying with the promoter; and
- status of the project (extent of development carried out till date and the extent of development pending) including the original time period disclosed to the allottee for completion of the project at the time of sale including the delay and the time period within which he undertakes to complete the pending project, which shall be commensurate with the extent of development already completed, and this information shall be certified by an engineer, an architect and a chartered accountant in practice.
- The promoter shall disclose the size of the apartment based on carpet area even if earlier sold on any other basis such as super area, super built up area, built up area etc. which shall not affect the validity of the agreement entered into between the promoter and the allottee to that extent.
- In case of plotted development, the promoter shall disclose the area of the plot being sold to the allottees as per the layout plan
WHERE TO APPLY FOR REGISTRATION
The application by the promoters along with necessary documents, information and fee as discussed under this article shall be made through online to the authority and the promoters can visit the following link https://rera.karnataka.gov.in/initProjectRegistration.
PROCESS AFTER FILING OF APPLICATION FOR REGISTRATION
After the application for the registration of the project is made, the authority as per section 5 of the Real Estate (Regulation and Development) Act, 2016 and Rule 6 of the Karnataka Real Estate (Regulation and Development) Rules, 2017 shall provide the login id and password to the promoter to access the webpage and shall grant the registration within a period of 30 days or reject the application by giving appropriate reasons after hearing the promoters, failure to accept the registration and reject the application, as the case may be, then the project is deemed to be registered.
Presently, after documents along with the necessary information as per Section.3(2) of Real Estate (Regulation and Development) Act, 2016 and Rule.4 of the Karnataka Real Estate (Regulation and Development) Rules, 2017 being uploaded for the new project, the authority will issue the acknowledgment number, after which the Authority scrutinizes the documents and information and may issue a notice to upload and provide the other documents and information, after which if there is any delay in registration of the real estate project, hear the promoters and may levy a penalty which may extend upto to ten percent of the project cost for registration of the real estate project.
- The list of documents as mentioned in this post are as per the provisions of the Real Estate (Regulation and Development) Act, 2016 and Karnataka Real Estate (Regulation and Development) Rules, 2017.
- We recommend the Promoters to seek the assistance of the Professionals involved in the real estate practice in case of any queries, clarifications with respect to registration of a real estate project under the provisions of Real Estate (Regulation and Development) Act, 2016 and Karnataka Real Estate (Regulation and Development) Rules, 2017.
For any other details, clarifications, assistance, advise and other services, please visit www.reraconsultants.in; or can get in touch with us at 080-2223 3003 or email to firstname.lastname@example.org