Guidelines to digital portals for advertisement of real estate projects – Karnataka RERA Circular No. RERA/ADM/CR-4/2019-20  dated 13.12.2019

Karnataka Real Estate Regulatory Authority (RERA)1/4, 2nd Floor, Silver Jubilee Block, Unity Building, CSI compound,3rd Cross, Mission […]

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Karnataka Real Estate Regulatory Authority (RERA)
1/4, 2nd Floor, Silver Jubilee Block, Unity Building, CSI compound,
3rd Cross, Mission Road, Bengaluru-560027

No. RERA/ADM/CR-4/2019-20

Date:13.12.2019

Circular

Subject: Guidelines to digital portals for advertisement of real estate projects- reg.

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Whereas, under Section 37 of the Real Estate (Regulation and Development) Act, 2016 (“said Act”) the Karnataka Real Estate Regulatory Authority is vested with the power to issue directions from time to time to the promoters, allottees or real estate agents’ as it considers necessary from time to time.

Whereas, the Chairperson, Karnataka Real Estate Regulatory Authority is vested with the powers of general superintendence and directions in the conduct of affairs of the Authority under section 25 of the said Act.

Whereas, under powers granted to the Karnataka Real Estate Regulatory Authority and its Chairman under the aforesaid provisions of the said Act and since the Karnataka Real Estate Regulatory Authority considers it necessary in the interest of the promoters including landowners and the allottees, the present Circular is issued exercising powers under the aforesaid provisions of the said Act.

Upon verification of Real Estate projects promoted in the digital portals, which works as online intermediaries for promoting real estate projects across the state of Karnataka and it was found that the most of the advertisements have been advertised without indicating Karnataka RERA Registration details as directed under the provisions of Real Estate (Regulation and Development) Act, 2016 and Rules framed thereunder and Circular dated 14.11.2019, issued by the Authority. Therefore, it is construed as digital portals are providing incorrect information about real estate projects.

The Authority therefore in exercise of powers under section 37 of the Real Estate (Regulation and Development) Act, 2016, issues the following directions:-

1. The digital portals shall maintain self-imposed discipline for fair practice, so that wrong information of non-registered properties nor without indicating Karnataka RERA registration details are not disseminated by them which ultimately may result in prejudicing the interest of both the buyers and the promoters.

2. Digital portals which carry the function of real estate agent and the same requires registration with the Authority. such digital portals are directed to register themselves with the Authority within next two months, if their activities are spread within the state of Karnataka. Further, the Digital portals are obligated to discharge the functions provided under section 10 of Act namely to maintain and preserve books of account facilitate the possession and the documents. Those portals who do not want to discharge these functions provided under law, then it is up to them to confine their activities as advertising agency namely to give information about the real estate project for offering it for sale or inviting persons for purchasing it and not more than that.

3. The activities of digital portal are only confined to advertisements defined by section 2(b) of RERA, need not register themselves as real estate agents, provided in disclaimer they declare that they are simply advertising agencies and advise the viewers to cross check the information from other sources including RERA websites.

4. The Authority issued circular on 14/11/2019 related to “Guidelines for Releasing of advertisement in print and Electronic media – Reg”. Hence all the digital portals shall ensure the compliance of for advertisement to be carried out and listed advertisements too, from the advertiser in accordance guidelines referred in circular above.

(By the approval of Hon’ble Chairperson)

Secretary
Karnataka Real Estate Regulatory Authority


 



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