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In a significant shift in real estate regulations, the Karnataka Real Estate Regulatory Authority (KRERA) has ordered builders to transfer control of common areas in apartment complexes to residents' associations. This landmark ruling was specifically directed at Signature Dwellings Private Limited, and it mandates the immediate transfer of common areas to allottees' associations upon their formation. Experts believe that this decision not only resolves a longstanding issue but also sets a precedent that could lead to broader reforms, potentially benefiting homebuyers across the nation.
In a ground breaking decision that marks a substantial shift in real estate practices, the Karnataka Real Estate Regulatory Authority (KRERA) has ordered that builders must transfer control of common areas in apartment complexes to the respective associations of allottees. This ruling was targeted specifically at Signature Dwellings Private Limited, in response to a complaint by Sandeep GW and Jonali Das.
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The order was issued under Section 18 of the Real Estate (Regulation and Development) Act, 2016, directing the immediate transfer of the common area to the association of allottees upon its formation. This is an unprecedented step, ending a longstanding practice by many builders of retaining control over common areas without formally transferring them.
The KRERA also instructed the builder to provide parking spaces to the complainants, in compliance with the BBMP Building Bye-laws, 2003. This ruling aims to address the problem by urging home buyers to register their associations under a competent authority like associations or cooperative societies under the KCSA 1959 Act, allowing them to gain control of their undivided share of land.
This directive by the KRERA could potentially signal a new era in the real estate sector in Karnataka, safeguarding the rights of homebuyers and making builders more accountable. It also offers a legal framework that could be replicated in other regions, benefiting homebuyers across the nation.
In conclusion, the recent ruling by KRERA in Karnataka represents a significant change in the real estate landscape, enforcing the transfer of common areas to residents' associations. By establishing clear guidelines and setting a precedent, this decision not only addresses a longstanding issue but also strengthens the rights of homebuyers. The case emphasizes the need for accountability in the sector and may pave the way for similar reforms in other states.
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