The Karnataka Real Estate Regulatory Authority has pulled up a Bengaluru-based real estate developer for its inability to provide the khata document relating to an apartment within two months of the agreement, as agreed upon with the homebuyer. Transfer of property title would be complete only on execution of a registered conveyance deed, issue of occupancy certificate and also khata is transferred to the name of allottee, said the authority.
The case came to notice when a homebuyer filed a complaint on non-issuance of khata within the agreed timeline by the developer, thus causing much financial distress. According to him, the delay impacted his ability to meet financial obligations every month, including repayment of home loan EMIs and rent payment. Even after taking possession of the apartment and commencing EMI repayments, the buyer wasn't able to complete the essential ownership formalities in the absence of a khata.
KRERA, in its order, referred to the sale deed dated January 3, 2025, between the parties, pointing out the contractual obligation of the parties. According to clause 136 of the sale deed, it is specified that the khata can be transferred in the purchaser's name, which stipulates that after that, the vendor has no claim or right upon the said flat. The Authority pointed out that the terms of the contract bind both the buyer and the developer, thus insisting on the latter's obligation to facilitate the transfer of khata within the stipulated time frame.
The regulatory authority further explained that in the case of newly constructed apartments, while the developers are supposed to do the initial bulk registration of khata for the property, the final transfer in the name of the allottee is to be done by the individual allottees themselves. KRERA also cited that since the provision of Section 17(1) of the RERA Act itself requires the transfer of the property title to be legally complete with the execution of a duly registered conveyance deed, issuance of occupancy certificate by the competent authority, and khata transfer in favour of the allottee,
The homebuyer had pointed out that the builder had promised to issue the khata within 60 days of registration, but it was more than 110 days now. The delay has resulted in a backlog in completing related legal and financial formalities, further compounding the buyer's financial strain. KRERA noted the seriousness of such delays, stating that if the developer fails to comply with the order, liability will be determined and compensation may be awarded in due course.
A concern that has been lately growing in Bengaluru's real estate is over property documentation delays, which can delay legal rights and financial plans of homeowners. The Authority's insistence on contractual obligations and the provisions under the RERA Act is a reiteration of what the law provides for buyers in case of non-compliance by developers.
While issuing the order, KRERA directed the developer to facilitate and assist the homebuyer in completing the khata transfer within a period of 30 days from the date of the order. The authority also forwarded a set of queries to the developer, thus indicating that further scrutiny would ensue to ensure compliance and accountability.
According to real estate experts, timely khata transfer is not only crucial for establishing ownership and recording a sale but also in the long term for enabling buyers to seek municipal services, pay property taxes, and sell or lease their property. Undue delays in this process can create a lot of legal and financial complications for the buyers and dent confidence in the real estate sector.
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