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Online real estate portals in Karnataka pulled up for misleading ads
Digital portals are obligated to maintain and preserve books of accounts and facilitate possession and documents, says circular released by K-RERA. Read on to know more..
The Karnataka Real Estate Regulatory Authority (K-RERA) has pulled up online real estate portals in the state that are promoting projects without details of the mandatory RERA registration number.
In a circular released last week, K-RERA asked digital portals to maintain self-imposed discipline in not disseminating wrong information about non-registered realty projects in the state or promoting a registered project without the registration details.
Informing buyers about a project’s RERA registration number can help them cross-check all the advertised information about the property on the K-RERA website.
These details may include the types of apartments or plots, list of approvals taken and those remaining, the layout plan, sanction plan, and the status of the project.
The move mainly aims to protect homebuyers in Karnataka from misleading promotions and advertisements by online portals. Notably, a lot of people visit such digital portals when they look to rent or buy a house as they are more convenient, offer wider set of options and prove to be relatively cheaper than availing the services of a real estate agent.
K-RERA also noted that since digital real estate portals carry out the function of real estate agents, they should register themselves with the authority within the next two months. Under the current RERA Act and rules, all real estate agents are required to register with K-RERA.
“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,” the circular added.
K-RERA also clarified that those portals which choose to serve just as advertising agencies need not register themselves as real estate agents, provided they mention in the disclaimer on their respective portals that they are simply advertising agencies and advise viewers that they cross-check all information on their portal from other sources including RERA websites.
