Introduction
Discover a world of possibilities as we invite you to explore the best in real estate. Frauds are increasing in today’s world. So, users should be very careful. At a time when India’s real estate market is booming, it offers you an exceptional real estate experience. Karnataka has seen a lot of development in real estate. Are you looking to buy a house in Karnataka real estate? But this story is for you.
Table of content
- Introduction
- Karnataka Real Estate: A House Booking Case
- Karnataka Real Estate: KRERA Officer Orders
- Experts Say This Order Will Set a Precedent.
- Conclusion
Karnataka Real Estate | In a rare instance, the Karnataka Real Estate Regulatory Authority (KRERA) has held both the developer and the real estate agent responsible for failing to refund the booking amount to a Bangalore-based project customer.
Passing the order on January 17, KRERA officials said, “Both the developer and the real estate agent shall be liable to return the booking amount within 60 days of the order”.
Karnataka Real Estate: A House Booking Case
In this case, a home buyer, Ranjeeva Ranjan, developed by Damden Properties in Damden Vivo, North Bengaluru, booked an apartment through Square Yards Pvt. Ltd. as an intermediary by paying a sum of Rs. 98,256. As per the specifications in the agreement, the booking amount is to be refunded if the housing loan application is rejected.
A home buyer booked an apartment in January 2018. In January 2019, he canceled the booking and sought a refund due to a disruption in the loan sanctioning process. However, despite several reminders when the refund was not processed, Ramadan went to KRERA for relief.
Karnataka Real Estate: KRERA Officer Orders
While pleading before KRERA, the developer denied all the allegations. “According to the agreement signed between the company and Square Yards, the amount will be debited into an escrow account, where the developer will get 78 percent of the share.
An escrow is a third party in a contract who advances money to the primary transacting parties. Payment is on terms agreed upon by the transacting parties.
Hence, the booking amount debited to the developer’s escrow account cannot be handled by him alone and should be handled jointly. However, according to the documents submitted to the authority. The booking amount will be returned if the home loan is not sanctioned, KRERA officers said.
Experts Say This Order Will Set a Precedent
While Bangalore’s real estate market continues to be in a frenzy with rising prices and a shortage of inventory, real estate agencies are booming in the city, legal experts said. They said agents should be held responsible for fines and home buying as they are important middlemen in terms of transactions.
According to ANAROCK data, in the first nine months of 2022, from Rs. 27,045 crores in the first nine months of 2023 to Rs. 38,517 crore, Bangalore saw a 42 percent increase in the total home sales value. Legal experts said KRERA has already made it mandatory for agents to register themselves for up to 5 years.
Conclusion
As we conclude your visit to Openplot, we express our gratitude for entrusting us with your real estate aspirations. Finding or selling a home is an important milestone, and we are honored to be a part of yours. Whether you’re looking for a new home, selling a property, or looking for a Karnataka real estate investment, this is your dedicated partner in making your real estate dreams come true. Your story starts with Openplot We are excited to be a part of it. Welcome to the world where your ideal home is just a click away!
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