Kerala RERA – 

Kerala has notified the Kerala Real Estate (Regulation and Development) Rules 2018 on 18th June 2018 vide GO (P) No. 46/2018/LSGD and has constituted Kerala Real Estate Regulatory Authority on 5th October 2019.

Sri. P.H. Kurian IAS (Retd) has assumes charge as Chairman and Adv. Preetha P Menon has assumed charge as member.

Authority has started the series of awareness program to educate the Promoters/Builders/Real Estate Agents, Allottees/Home buyers/consumers and various stake holders.

Application, forms, affidavits etc are published in the Kerala RERA Website for registration of Real Estate Projects and Real Estate Agent and guidelines there on.

This note will help the reader to understand the basics of RERA and about Kerala RERA.

Details Details Status / Remarks
Website Official Kerala RERA Website https://rera.kerala.gov.in/
Address Kerala RERA Office Address Swaraj Bhavan, 5th Floor,

Nanthancode, Kowdiar PO,

Thiruvananthapuram 69500

Mail  Email info.rera@kerala.gov.in
 

About RERA and KERALA RERA

Government of India has enacted the Real Estate (Regulation and Development) Act 2016 and all the sections of the Act shall come into force with effect from May 1, 2017.

Under this Act, Government of Kerala established Kerala Real Estate Regulatory Authority (K RERA), vide Notification No. G.O. (P) No. 65/2019/LSGD dated 5th October 2019, for regulation and promotion of real estate sector in the State of Kerala. Real Estate (Regulation and Development) Act 2016 is a step towards reforming the real estate sector in India, encouraging greater transparency, citizen centricity, accountability and financial discipline.

Chairman and Member of Kerala RERA Sri PH Kurian IAS (Rtd) – Chairman RERA &

Mrs Preetha P Menon- Member

As per GO(P) No. 65/2019/LSGD dated 05/10/2019, Government of Kerala has constituted Kerala Real Estate Regulatory Authority. Sri. P.H. Kurian IAS (Retd) has assumes charge as Chairman and Adv. Preetha P Menon has assumed charge as Member.

Real Estate Projects Registration in KERALA – Applicability All commercial and residential real estate projects will have to register except in projects where

1.    area of land proposed to be developed does not exceed 500 square meters

2.    number of apartments proposed to be developed does not exceed 8 inclusive of all phases

3.    promoter has received completion certificate for a real estate project prior to commencement of this Act (i.e, as on 01/05/2017)

4.    for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project

Real Estate Agents Registration – Kerala RERA All Real Estate Agents should register under this Act. No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, without obtaining registration under this section.

 

Financial Discipline under RERA and Kerala RERA

Most important requirement under RERA is financial discipline –

1.    The Act strives to ensure greater financial discipline in the real estate sector. Some of its provisions are as follows:

2.    A promoter shall not accept more than 10%(Ten per cent) of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale.

3.    70%(Seventy per cent) of the amounts realized for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose.

4.    Withdrawal from such accounts shall be in proportion to the percentage of completion of the project, which shall be certified by an engineer, an architect and a chartered accountant in practice.

5.    Promoter to compensate buyer for any false or incorrect statement with full refund of property cost with interest.

6.    Project Accounts to be Audited / FY and copy to be submitted to K-RERA

7.    Provision for K-RERA to freeze project bank account upon non-compliance

8.    Provision for stronger financial penalties for K-RERA non-compliance

Transparency The Act shall drive great transparency in the real estate sector as follows:

1.    Details of all the Registered Projects shall be available online for citizens including:

2.    sanctioned plans, layout plans, along with specifications, approved by the competent authority

3.    Proposed Plan, Proposed Layout Plan of the whole project and Floor Space Index proposed to be consumed in the whole project, as proposed by the promoter

4.    Proposed Number of building(s) or wing(s) to be constructed and sanctioned number of the building(s) or wing(s).

5.    the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.

6.    quarterly update of the list of number and types of apartments or plots, as the case may be, booked

7.    quarterly update of the list of number of covered parking, garages booked;

8.    quarterly update of the list of approvals taken and the approvals which are pending subsequent to commencement certificate;

9.    quarterly update of the status of the project; and

10. such other information and documents as may be specified by the regulations made by K-RERA.

11. The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of K-RERA, wherein all details of the registered project have been entered and include the registration number obtained from the Authority.

Citizen / Buyer Centricity Acts aim at providing greater transparency, citizen centricity, accountability and financial discipline –

1.    Citizens shall be able to view, on K-RERA website, all disclosures pertaining to registered projects. This shall enable data driven informed decision making.

2.    Promoter cannot make any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities etc. without the previous consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in such building.

3.    If the promoter fails to complete or is unable to give possession of an apartment, plot or building, in accordance with the terms of the agreement for sale, he shall be liable to pay interest for every month of delay. Further, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him with interest.

4.    Promoter to enable formation of Legal Entity like Cooperative Society, Company, Association, Federation etc. within three months from the date on which 51%(Fifty One per cent) of the total number of Purchasers in such a building or a wing, have booked their apartment.

5.    Promoter shall execute a registered conveyance deed in favour of the allottee within 3(Three) months from date of issue of occupancy certificate.

Reader can write to vinay@vnv.ca for more clarification on RERA related topics / subject

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CA Vinay Thyagaraj, practicing Professional in the area of Real Estate, Direct Taxation, business structuring apart from financial consultation. Practicing since 2 decades in Bengaluru, developed team of professionals to provide holistic and 360 Degree services to the clients. Living with parents, View Full Profile

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