Under Section 18 of the Real Estate (Regulation and Development) Act, 2016, the Karnataka Real Estate Regulatory Authority (KRERA) has issued a directive to Signature Dwellings Private Limited, based on a complaint by Sandeep GW and Jonali Das, instructing the builder to promptly transfer the common area to the allottees' association upon formation and to allocate car parking spaces to the complainants in adherence to the BBMP Building Bye-laws, 2003.
This ruling signifies a significant shift, as numerous builders have traditionally held onto authority over common spaces within residential apartment complexes, refraining from relinquishing control to the designated allottees' associations.
The KRERA's decision mandates that builders must now transfer the common areas within apartment complexes to the allottees' association, offering relief to homebuyers who have eagerly anticipated this revised approach.
Dhananjaya Padmanabhachar, the Coordinator of the Karnataka Home Buyers' Forum, expressed his gratitude for KRERA's directive, stating that the recent ruling in the Signature Crest Apartment case holds significant importance as it addresses longstanding concerns in Karnataka regarding the transfer of common areas to the allottees' association. He underscored the necessity of adhering to Section 17 of RERA by transferring common spaces to the duly registered association of allottees, urging homebuyers to actively advocate for this transfer to protect their rights and responsibilities. He highlighted the need for homebuyers to establish a registered allottees' association and secure the transfer of common areas by requesting developers to execute a conveyance deed in accordance with Section 17 of RERA. For projects initiated prior to RERA, he emphasized the demand for the transfer of common areas as outlined in Section 11 of the Karnataka Ownership Flats Act 1972.
Jibin Jayaram, a purchaser of a residential property, lauded the judgment as a commendable decision by RERA. He pointed out that in Karnataka, a persistent problem has been the failure to transfer land titles to the apartment owners' association. This allows builders and landowners to retain control indefinitely, in contrast to Maharashtra, where promoters either transfer the land or associations pursue deemed conveyance. Jibin Jayaram highlighted a key obstacle to land conveyance in Karnataka – the absence of registration for apartment owners' associations, rendering them ineligible for the execution of conveyance deeds as non-corporate entities.
He emphasized that it's crucial for homebuyers to promptly register their associations with the relevant authority, transforming them into corporate entities similar to associations or cooperative societies under the KCSA 1959 Act. This step would empower them to assume ownership and control over their rightful undivided land shares.
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