The top five game-changing directives from Karnataka RERA for Bengaluru in 2023, ranging from parking regulations to flood compensation

 The top five game-changing directives from Karnataka RERA for Bengaluru in 2023, ranging from parking regulations to flood compensation

These are the top 5 KRERA orders for 2023, which will have a significant effect on the industry. They include holding developers accountable for damages caused by floods and granting possession without obtaining an OC.

From the time they reserve a property until they move in, millions of house purchasers navigate a difficult process that involves several government agencies, tribunals, and courts. Nonetheless, the Bengaluru real estate market has already altered as a result of a few KRERA orders.

The Karnataka Real Estate Regulatory Authority (KRERA) issued many decisions in 2023 that had an extraordinary effect on the city's real estate market. These are the top 5 KRERA orders that had an effect on Bengaluru's real estate market.

KRERA mandates that the developer provide flood insurance.

In July, KRERA issued a ruling declaring that flooding in an apartment building cannot be attributed to a "act of God" and directing the builder to reimburse project purchasers with an amount of Rs 1 lakh.

This occurs at a time when widespread flooding in Bengaluru is making headlines. All of the scientific research and technological support aside, encroachment and urbanization remain the two main reasons.

After signing the cancellation deed and getting their return, homeowners are not eligible to pursue interest.

In a significant ruling, KRERA stated that, in accordance with the cancellation deed, the house buyer's reimbursement was contingent upon a complete and final settlement between the parties.

Therefore, the developer and the house buyer agreed that all rights, obligations, and interests with regard to the property would be assumed to have been settled, as per the cancellation deed. As a result, KRERA said that the developer provided the house buyer with a final payment that included the main amount refunded.

The regulator said, "Therefore, the principle of estoppel affects his claim for delayed interest and cannot be considered." The legal doctrine of estoppel forbids someone from reversing a previous deed or declaration.

Without legitimate documentation, the developer cannot demand unpaid bills or delayed interest from purchasers.

From the time they reserve a property until they move in, millions of house purchasers navigate a difficult process that involves several government agencies, tribunals, and courts. There are 500,000 homes worth Rs 4.48 lakh crore stuck in seven of the nation's micromarkets, according to reports.

In a huge relief to house buyers, KRERA has made it such that developers must provide legitimate documentation, including construction blueprints and project clearances, in order for home owners to be able to claim delay interest on non-payment of dues.

The majority of the developer's paperwork, including the Bengaluru Development Authority (BDA) modification plan and upgrading plan, were discovered to be either void or expired by the authority, which resulted in the order being granted in favor of the house buyer.

As a result, it stopped the developer from getting interest on past-due payments until the papers were turned over.

minimal guidelines for parking

Parking for cars has grown to be a significant issue in Bengaluru due to the real estate industry's slow growth. In order to sell more space, developers started to reduce the number of parking places.

But KRERA stepped in and established a precedent that, according to Bengaluru's local municipal rules, the minimum parking space that is supplied for allottees must be at least 18 square meters (3 m x 6 m).

Buyers of homes who take possession without an OC are not eligible to reimbursement.

When a project is delayed, house owners often move into it without an occupancy certificate (OC) due to financial strain.

KRERA has made it clear, nonetheless, that in the event of a delay in possession, property purchasers who took possession prior to the issue of the Occupancy Certificate (OC) would not be eligible for reimbursement.

"It is explicitly stated in the Bruhat Bengaluru Metropolitan Municipality Act that possession cannot be seized until the OC has been secured. Both the developers and the house purchasers must abide by the terms of the contract they signed when the buyers take possession of the property without the owners' consent. There are transgressions. Developers would always take advantage of the situation in such circumstances, according to Bangalore City Flat Owners Welfare Association President Anil Kalgi.