Guidelines for Releasing of advertisement in print and Electronic media

Karnataka RERA issued a circular in relation to “ Guidelines for Releasing of advertisement in print and Electronic media “. The circular states that Upon verification of Real Estate projects promoted in the digital portals, which work as online intermediaries for promoting real estate project across the state of Karnataka and it was found that the most advertisements have been advertised without indicating  Karnataka RERA Registration details as directed under the provision of Real Estate (Regulation and Development) Act,2016 and rules framed thereunder and Circular dated 14.11.2019, issued by the Authority. Therefore, it is construed as digital portals are providing incorrect information about real estate projects.

The Authority therefore in exercise of powers under section 37 of the Real Estate (Regulation and Development) Act,2016, issues the following directions:-

1. The digital portals shall maintain self -imposed discipline for fair practice, so that wrong information of non registered properties nor without indicating Karnataka RERA registration details are not disseminated by them which ultimately may result in prejudicing the interest of both the buyers and the promoters.

2. Digital portals which carry the function of the real estate agent and the same requires registration with the Authority. Such digital portals are directed to register themselves with the Authority within the next two months if their activities are spread within the state of Karnataka. Further, the Digital portals are obligated to discharge the functions provided under section 10 of Act namely to maintain preserve books of account facilitate the possession and the documents. Those portals who do not want to discharge these functions provided under law, then it is up to them to confine their activities as advertising agency namely to give information about the real estate project for offering it for sale or inviting persons for purchasing it and not more than that.

3. The activities of the digital portal are only confined to advertisements defined by section 2(b) of RERA, need not register themselves as real estate agents, provided in disclaimer they declare that they are simply advertising agencies and advise the viewers to cross-check the information from other sources including RERA websites.

Hence all the digital portals shall ensure the compliance of for advertisement to be carried out and listed advertisements too, from the advertiser in accordance guidelines referred in circular above.