Note on Kerala Real Estate (Regulation and Development) Rules 2018

Nanthancode, Kowdiar PO,

Thiruvananthapuram 69500

About RERA and KERALA RERA

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.

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.

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

Financial Discipline under RERA and Kerala RERA

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

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.

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.