Bengaluru, Nov 14: Real estate agents operating in Bengaluru and other major cities of the state may have to shell out hefty sums to register themselves under the new Real Estate (Regulation and Development) Act, 2016.
The state government has in its draft rules — the Karnataka Real Estate (Regulation and Development) Rules, 2016 — prepared for implementing the Act proposed to create two categories of real estate agents: those operating in the Bengaluru Metropolitan Region (BMR) jurisdiction and those in other planning areas outside the BMR jurisdiction. Two separate slabs of registration and renewal fees have been proposed in the draft notified on October 24 this year.
Registration fee proposed for the agents in the BMR is higher compared to those operating in other places. An individual agent has to pay Rs 50,000 as registration fee and Rs 5 lakh for a real estate company in the BMR. It is Rs 25,000 for an individual outside the BMR jurisdiction and Rs 2.5 lakh for real estate entities. The Centre has in its rules fixed Rs 10,000 for an individual agent and Rs 50,000 in case of real estate firms. The registration will be valid for five years.
However, there is no mention of registration fee for the projects in the draft copy. The Centre has fixed Rs 5 per square metre for up to 1,000 sq m area and Rs 10 per sq m beyond this limit. The Real Estate Act envisages ensuring transparency and accountability in the sector. Except for the registration fee, the state government has adopted almost all the provisions of the rules notified by the Centre recently, including the rate of interest payable by the promoter to the allottee in case of refund or compensation.
Besides, there is ambiguity in the draft on jurisdiction of agents operating in Bengaluru. The draft says the jurisdiction is within the Bangalore Metropolitan Region Development Authority (BMRDA) jurisdiction. BMRDA includes six local planning authorities of BIAAPA, Nelamangala, Anekal, Hoskote, Kanakapura and Magadi. But the BDA and the BBMP do not fall under the BMRDA jurisdiction. Official sources in the housing department, however, said it is the BMR jurisdiction.
According to the draft rules, a Real Estate Regulation Authority (RERA) will be set up wherein the promoters have to register their projects before marketing them. The real estate agents too have to register themselves with the authority, which will make all information on both the projects and the agents available on its website. The authority ensures that the promoters comply with legal formalities while implementing the project. The promoter has to comply with deadlines for completing the project. The allottees are entitled to compensation in case of delay in project implementation.
On seeking his reaction on the registration fee for the projects, Principal Secretary to Housing department Shambhu Dayal Meena said people can file objections if they have any. Housing Minister M Krishnappa said the government will rectify all mistakes, if any, at the time of issuing the final notification.
Suggestions and objections can be sent to [email protected]
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