Karnataka Home Buyers Forum urges action on apartment association registration and RERA strengthening, addressing property title issues.

The Karnataka Home Buyers Forum has reached out to the Deputy Chief Minister, highlighting critical concerns in the state’s real estate sector. The group is seeking action on matters related to the registration of Home Buyers Apartment Associations/Societies and the reinforcement of the Real Estate (Regulation and Development) Act (RERA) in Karnataka.

One of the primary issues raised by the forum pertains to the transfer of Project Land titles to the associations of home buyers who purchase apartments. They emphasize that this transfer is a legal requirement, as outlined in Section 11 of the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act (KOFA) and Section 17 of RERA.

In their official communication to the Deputy Chief Minister, the forum has proposed several measures to address these challenges:

  1. Competent Authority for Registration: The forum requests the government to designate a competent authority for registering apartment owners’ associations in Karnataka. This designation would facilitate promoters’ compliance with Section 17 of RERA 2016, which mandates the transfer of common areas to the association of allottees. The proposal includes defining the process and stamp duty guidelines for executing conveyance deeds, ensuring the transfer of common areas to the association.
  2. Preventing Deemed Association Registration: To eliminate the practice of promoters claiming deemed association registration under the Karnataka Apartment Ownership Act (KAOA) 1972 through the registration of Deeds of Declaration (DoD) with bylaws, the forum calls for interventions by the Department of Co-operation and the Registrar of Co-operative Societies.
  3. Co-operative Society Registration: The forum suggests that all apartment associations should be registered as cooperative societies under the Karnataka Cooperative Societies Act, 1959, ensuring proper governance and adherence to regulations.

In cases where builders are untraceable or unwilling to participate in the conveyance process, home buyers can apply to the Registrar for deemed conveyance.

Dhananjaya Padmanabhachar, Sanchalak of Karnataka Home Buyers Forum, emphasized the issue of land ownership. He pointed out that while the sale deed mentions the undivided interest of home buyers, land records often remain in the possession of the builder or landowner. This practice allows promoters to assert ownership claims at their discretion. In contrast, other states like Maharashtra follow a cooperative society model, which transfers land rights to the society. Karnataka has yet to adopt this approach.

Regarding the failure to declare a competent authority for registering homeowners’ associations, the forum has lodged a complaint with the Lokayukta against the Principal Secretary of the Housing Department, Government of Karnataka, citing allegations of corruption and dereliction of duty.

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