KRERA has asked online realty portals to register under RERA Act
Karnataka Real Estate Regulatory Authority (KRERA) has asked online real estate portals to register themselves under the RERA Act and Rules within two months. KRERA has termed these portals as an “online intermediaries for promoting real estate projects across the State.”
Known for giving a fierce competition to the real estate agents, online real estate portals came under the scrutiny of the regulatory authority after it was noted in a circular by KRERA that these portals are performing the function that real agents perform –who are mandated to register under the RERA Act.
The circular noted, “Further, digital portals are obligated to maintain and preserve books of accounts and facilitate possession and documents. Those portals who do not want to discharge functions provided under law, it is up to them to confine their activities as advertising agencies.”
These portals have helped millions of people in assisting them in purchasing or renting a house. In compared to the local agents, these portals offer a wide range of varieties and choices for lesser service fee or even at no cost sometimes.
The step was taken after the authority noted that these portals are listing the projects without mentioning the RERA registration number. The circular stated, “Therefore, it is construed that digital portals are providing incorrect information about real estate projects.”
Several experts in the industry have welcomed the move by the authority. This has paved the way for regularising online digital platforms under the rules and policies of the states. This would also end up in protecting the Karnataka people from misleading advertisements and promotions by these portals.
The step must be extended to the national level so that people from across the country could be protected from such misleading promotions and advertisements.