In 2023, Karnataka Real Estate Regulatory Authority (KRERA) made significant rulings that transformed Bengaluru’s real estate landscape. These orders hold immense importance, impacting both developers and homebuyers alike.
1. Developer Accountability for Flood Damage
KRERA mandated developers to compensate homebuyers affected by flooding in an apartment complex. This ruling emphasized that flooding couldn’t be deemed an “act of God,” holding developers accountable to pay Rs 1 lakh as compensation to affected buyers.
2. Settlement Terms After Cancellation
In a crucial decision, KRERA upheld that refunds issued to homebuyers upon cancellation constituted a final settlement. Any claims for delayed interest post-cancellation were deemed inadmissible due to the agreement made between the buyer and the developer.
3. Documentation Requirement for Delay Interest
KRERA ruled that developers couldn’t demand delay interest from homebuyers without providing valid documents like building plans and project clearances. Insufficient or expired documentation barred developers from seeking such interest until they fulfilled the necessary requirements.
4. Minimum Parking Regulations
Addressing the growing challenge of parking spaces in Bengaluru, KRERA set a precedent. It mandated that the allotted parking space for buyers should not be less than 18 square metres, in line with local municipal bylaws.
5. Possession without Occupancy Certificate (OC)
KRERA clarified that homebuyers taking possession before obtaining the Occupancy Certificate (OC) wouldn’t be entitled to compensation for delayed possession. Emphasizing the legal requirement of obtaining OC before possession, this ruling aimed to prevent contractual violations by both developers and buyers.