Rohan Akriti: RERA in Karnataka- Guidelines for a Better Investment Stratergy

Karnataka has showcased some of the best real estate projects the state has to offer. Developing cities, Especially Bangalore has witnessed realtors from all across the country set their respective bases to cater to the demand raised by potential investors. Sobha Dream Gardens by Sobha developers is one such project that is strategically located to precision at Bellahalli in Bangalore. The project offers fabulous high-rise architecture marvels so residents can enjoy stunning views of landscaped gardens surrounding the project. After the introduction by policies set by the government like RERA and GST, the demand for affordable housing has increased considerably. These are rules that have to be strictly adhered to be the realtors in terms of product and service offering. Prior to such policies, realtors use to set expectations and fail to deliver them on time. Architecture developments are pivotal in impacting customer purchase decisions which in turn establishes long-standing relationships with key clients. Failure on keeping up with rules and regulations of these policies may end up disastrous for realtors. From cancellation of builder licenses till imprisonment, everyone has to pay a price without any scope of negotiation. Builders are now careful as attention to detail has become crucial in order to provide high-class realty services.

Real-Estate Regulation Act

What should investors know about RERA before planning on investment decisions ?

Because of these policies, situations in the real estate market have become far more polished and uniform. Prior to these regulations, there were real estate brokers and developers who were delaying on delivering the final product and estimations that were set were not met. This resulted in the downfall of the real estate market as the main focus wasn’t on customer satisfaction. Land deeds and legal documents weren’t shared on most occasions which is not the way to go about it. Here, we have listed some pointers of information that residents should look out for before they plan on contacting realtors for their investment requirements.

Make note if a realtor has registered themselves under the RERA regulation act

It is mandatory that every realtor who have come up with a new residential project register themselves under the RERA act. This is to keep track of records and sales prospects. Residents, on the other hand should ask for such information before they begin their transactions with the respective realtor.

Disclosure of legal and other relevant documents

It is crucial that residents are given every legal document about the project that comprises of all salient features about the property. Failure to do so can end up costly for potential investors. Goes without saying, this is a great move by the government to have a single act that every realtor should abide by. Be it about the amenities, project property size, location or floor plan specifications, every minute detail should be put forward so residents have a sense of trustworthiness towards the realtor.

Deliver product services on time

Property developers should keep in mind that the clauses on paper should be strictly adhered to. For instance, the time of completion of the project should described with utmost precision and residents should be able to move in within that time frame.

Property Registration Documents

Rectify or replace flaws in the foundation within 2 years of possession

Within two years of possession of the property, if residents find structural defects in the property, it is the sole responsibility of the realtor to rectify these unexpected flaws with immediate effect.

70% of the revenues from residents to be deposited into a separate bank account

It is a must that realtors plan their revenues responsibly in order to avoid accountability issues in the future. According to the RERA act, money collected from prospective investors towards a particular project, 70% of it should be transferred to a separate bank account in order to cover up the losses for defects in the foundation. Money can be withdrawn from this account only after an approval from an architect, engineer and a chartered accountant.

Updates about the project from conceptualization until completion

It is the responsibility of the investor that they get appropriate information and regular updates about property development at varied stages of project. This is important as the residents can predict what the future holds for them as far as overall land value is concerned.

Sobha Dream Garden specifications are certainly in line with industry standards and expectations that are set by individual customers. With amenities like no other, residents are sure to sail through life with effortless ease. The project enjoys impeccable connectivity benefits as numerous IT tech parks are in close proximity which is an added advantage for residents who are willing to rent out the property. Some of the prestigious schools, colleges and medical institutions are in close proximity so residents needn’t worry about their everyday commute.
If You are impressed about Shoba Properties and the specidication they provide in thier projects Check out Why Should you invest in Sobha Dream Gardens??