Bengaluru Homebuyer Relief: KRERA Mandates Developer to Issue Khata in 30 Days
The Karnataka Real Estate Regulatory Authority (KRERA) has taken a significant step to address the growing concern of property documentation delays in Bengaluru. The regulatory body has directed a local real estate developer to issue the khata document for an apartment within 30 days of the order. This decision comes after a homebuyer filed a complaint regarding the non-issuance of the khata within the agreed timeline, causing significant financial distress.
The homebuyer, who had taken possession of the apartment and commenced EMI repayments, was unable to complete essential ownership formalities due to the lack of a khata. This delay impacted his ability to meet monthly financial obligations, including home loan EMIs and rent payments. The complaint highlighted the developer's failure to adhere to the contractual agreement, which stipulated that the khata should be transferred within 60 days of registration.
KRERA, in its order, referred to the sale deed dated January 3, 2025, and pointed out the contractual obligations outlined in clause 136. This clause specifies that the khata can be transferred to the purchaser's name, after which the vendor has no claim or right to the flat. The Authority emphasized that the terms of the contract bind both the buyer and the developer, thereby obligating the developer to facilitate the transfer of khata within the stipulated time frame.
The regulatory authority also explained that in the case of newly constructed apartments, developers are responsible for the initial bulk registration of the khata for the property. The final transfer to the allottee's name is typically the responsibility of the individual allottees. However, KRERA cited Section 17(1) of the RERA Act, which requires the transfer of property title to be legally complete with the execution of a duly registered conveyance deed, issuance of an occupancy certificate by the competent authority, and the transfer of khata in favor of the allottee.
The homebuyer had pointed out that the developer had promised to issue the khata within 60 days of registration, but it had been over 110 days with no resolution. This delay has resulted in a backlog in completing related legal and financial formalities, further exacerbating the buyer's financial strain. KRERA recognized the seriousness of such delays and warned that if the developer fails to comply with the order, liability will be determined, and compensation may be awarded.
The issue of property documentation delays has been a growing concern in Bengaluru's real estate market. Such delays can significantly impact homeowners' legal rights and financial plans. KRERA's insistence on contractual obligations and the provisions under the RERA Act serves as a reminder to developers about their responsibilities in ensuring timely and transparent property transactions.
In its order, KRERA directed the developer to facilitate and assist the homebuyer in completing the khata transfer within 30 days from the date of the order. The authority also forwarded a set of queries to the developer, indicating that further scrutiny would be conducted to ensure compliance and accountability.
Real estate experts emphasize the importance of timely khata transfer. It is not only crucial for establishing ownership and recording a sale but also essential for enabling buyers to access municipal services, pay property taxes, and sell or lease their property. Undue delays in this process can create significant legal and financial complications for buyers and undermine confidence in the real estate sector.
The KRERA's decision is a positive step towards ensuring that developers adhere to their contractual obligations and that homebuyers' rights are protected. It sets a precedent for addressing similar issues in the future and reinforces the regulatory framework that governs the real estate market in Karnataka.
