Builders Must Hand Over Common Area To Residents’ Association: Karnataka RERA

Posted On - 9 August, 2023 • By - Agnel Leona

Sandeep GW and Jonali Das filed a complaint, leading the Karnataka Real Estate Regulatory Authority (KRERA) to issue a significant directive to Signature Dwellings Private Limited, the builder involved. The builder is directed by the judgment, which was issued in accordance with Section 18 of the Real Estate (Regulation and Development Act), 2016, to transfer the common space to the association of allottees as soon as the association is formed. 

This ruling represents a significant shift since many builders previously kept authority over communal facilities in apartment buildings without transferring the corresponding associations of allottees. 

In addition, the builder is commanded to give the complainants a parking place in compliance with the 2003 BBMP Building Bye-laws. 

The Karnataka Home Buyers’ Forum is pleased that builders are now obligated to hand over the common area at apartment complexes to the association of allottees as a result of the Karnataka RERA verdict. In response to the KRERA order, Sanchalak Dhananjaya Padmanabhachar expressed his gratitude. He said, “The current order given in the Signature Crest Apartment case is very important and sets the directions for long-pending issues in Karnataka with respect to transfer of common areas to the association of allottees,”.

Emphasizing the importance of safeguarding their rights and obligations, he stressed the necessity of transferring common areas to the registered association of allottees, in accordance with Section 17 of RERA. He encouraged property buyers to assertively request this transfer, stating, “Home buyers must take proactive steps to establish a registered association of allottees and secure the transfer of common areas by insisting that promoters execute a conveyance deed as per section 17 of RERA.” For projects before RERA, home buyers need to demand the transfer of common areas as per section 11 of Karnataka Ownership Flats Act 1972,” he added.  

A Homebuyer Jibin Jayaram described the ruling as a wonderful RERA order. ” Jibin Jayaram pointed out that the persistent issue in Karnataka is the failure to transfer land titles to the organization of apartment owners. Unlike Maharashtra, where either the promoter conveys the land or associations opt for deemed conveyance, in Karnataka, the builder and landowners retain control indefinitely. The main obstacle to property conveyance in Karnataka is the lack of registration for apartment owners’ associations, which prevents the execution of conveyance deeds for non-body corporate entities.

He emphasized that it is crucial for home buyers to take immediate action and register their associations under the appropriate authority to attain body corporate status, similar to associations/cooperative societies under the KCSA 1959 Act. By doing so, they can assert ownership and take control of their undivided share of land that rightfully belongs to them.