Real estate: Government out with new rules

All real estate agents are required under the new rules to maintain and preserve books of accounts, records and documents.

BELAGAVI: The state government which is attempting to regulate the real estate business, tabled the Karnataka Real Estate (Regulation and Development) Rules, 2017 , which makes registration mandatory for real estate agents, among other things, in the Legislative Council on Wednesday.

Interestingly, the rules provide an opportunity for people to approach the Real Estate Regulatory Authority if a promoter fails to honour his commitment given when booking flats, plots or apartments.

To register, the agent has to pay a fee of Rs 25,000 if he is an individual and Rs 2 lakh if there is more than one person involved. His licence will be valid for five years and will have to be renewed thereafter.

All real estate agents are required under the new rules to maintain and preserve books of accounts, records and documents in accordance with the provisions of the Income Tax Act, 1961.

And the promoter is required to furnish additional information and documents, along with those specified in sub-section (2) of Section 4 of the Act for registration of a real estate project. This will include the number of parking slots available in a project, authenticated copy of the legal title deed of the land being developed, details of encumberance, a certified copy of the conversion order under section 95 of the Karnataka Land Revenue Act, 1964 and permission of change in land use granted under section 14 of the Karnataka Town and Country Planning Act.

The promoter is also required to provide the original sanctioned plan, layout plan and specifications, besides the subsequent modifications carried out, if any, reveal the total amount of money collected from the allotees, and the funds used for development of the project. He must disclose the status of the project, including the original time period given to the allottee for its completion , and any delay, if any. He is additionally required to disclose the size of the apartment being built based on carpet area

Any aggrieved person is allowed under the rules to file a complaint with the regulatory authority on payment of a fee of Rs 1000. If the promoter pleads guilty, the authority can impose a penalty on him.

( Source : Deccan Chronicle. )
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