The bustling port city of Mangalore has become a focal point for increased real estate scrutiny as Karnataka RERA enforces strict documentation verification protocols. These measures aim to eliminate fraudulent practices that have plagued property transactions across the coastal region.
Mandatory Project Registration Requirements
Developers in Mangalore must now register all projects exceeding 500 square meters or containing more than eight apartments before starting any marketing activities. This registration serves as the foundation for legitimate property transactions, ensuring buyers engage only with verified developers who meet regulatory standards.
The documentation checklist includes comprehensive project details, financial statements, and approved construction plans that must be publicly accessible through the K-RERA portal. Buyers should verify all documents and papers before registration to significantly reduce the risk of fraud.
Financial Transparency Through Escrow Compliance
A critical safeguard involves the mandatory deposit of 70% of collected buyer payments into dedicated escrow accounts. This regulation prevents fund diversion to other projects, ensuring construction proceeds without financial obstacles. Mangalore developers who violate this requirement face severe penalties and potential project suspension.
Enhanced Due Diligence Protocols
Property transactions now require multiple verification layers, including bank approval confirmations and developer credential checks. Buyers must examine carpet area and super area calculations, as all sales must reflect actual usable space rather than inflated super-built measurements.
Timely project completion remains non-negotiable, with developers liable for compensation if possession delays occur beyond agreed timelines. This accountability mechanism protects Mangalore homebuyers from indefinite waiting periods that previously characterized the market.
Strengthened Consumer Protection
The enhanced documentation framework empowers buyers with unprecedented transparency. Regular project updates on the K-RERA website keep stakeholders informed about construction progress, while any plan modifications require explicit approval and disclosure. These measures collectively transform Mangalore's property landscape into a more secure and trustworthy investment environment.