Thiruvananthapuram: A watchdog for the real estate sector has belatedly come into existence in Kerala. Traumatic property purchases would be a thing of the past if the property developers, agents and buyers stick to the provisions of the regulator. Chief Minister Pinarayi Vijayan would launch the Kerala Real Estate Regulatory Authority (K-RERA) on Wednesday. Certificates of projects and agents that have been registered so far would also be distributed at the function.
Buildings with more than eight apartments and real estates projects with 500 sq metres of land or more would have to be registered with the authority. Real estate agents should also register with the authority.
With the enactment of the Real Estate (Regulation and Development) Act, 2016 by the centre, each state has to set up the regulatory body, RERA. The body is empowered to oversee the real estate sector and resolve grievances of all stakeholders. Though the central legislation came into effect by mid-2017 and a few states subsequently established the regulator, there has been a delay in constituting it in Kerala even as an apex court order to raze four high-rises in Maradu over legal violations and procedural irregularities highlighted the need for such a mechanism.
RERA procedures
* All projects with more than eight apartments or 500 sq metres have to be registered.
* Those, who have currently started work and have not got occupancy certificate, should register by March 31.
* No real estate sale or advertisement without registration
* A decision on registration application has to be made in 30 days
* Decision on complaints within two months.
What the promoters have to do
* 70 per cent of the advance money given by the customers should be deposited in a special bank account.
* Every three months, the updates on the project and booking details have to be submitted online.
* Sale deed only on official form.
* Insurance cover has to be given till the property is handed over.
* Take up the responsibility for construction defects for up to five years after the sale
* An association of the owners should be formed three months after a major share of the units have been sold. Till then services have to be made available at a nominal rate.
* Owners should be given a copy of all the documents including, occupancy certificate.
What the promoter should not do
* Should not take more than 10 per cent of the total amount till the sale deed is signed.
* Advance money should not be withdrawn from the bank account without the certification on completing the construction phase.
* Should not make any changes to the plan or components without the owners' nod.
Rights of property buyer
* Right to seek copies of plan and layout.
* Right to seek a written document on the progress in construction.
* Right to levy compensation if the norms of the sale deed are violated.
RERA charges
Plot development - Rs 10 per sq metre of the layout area
Ongoing project - Rs 10 per sq metre of the layout area, Rs 25 for floor area
New project - Rs 10 per sq metre of the layout area, Rs 50 for floor area
Commercial project - Rs 10 per sq metre of the layout area, Rs 100 for floor area
Real estate agent - Rs 25,000
Real estate company - Rs 2,50,000.
Penalties
* 10 per cent of the money involved in projects that have not been registered. If the offence is repeated, imprisonment of up to three years
* Five per cent of the project money if false information is given during the time of registration
* Non-registered real estate agents - Rs 10,000 for every day when the offence is committed
* 10 per cent of the project money has to be given by those promoters, agents and customers, who do not follow the appellate tribunal's guidelines
Where to complain
* Those who book or buy property may submit complaint by filling out the M form on the RERA website https://rera.kerala.gov.in/along with a DD of Rs 1,000.
* Complaints against the RERA's decisions can be given to the Kerala Real Estate Appellate tribunal.
* Complaints about law violations can be emailed to - info.rera@kerala.gov.in.
* Swaraj Bhavan in Thiruvananthapuram would be the headquarters of the RERA. Phone number: 0471–2313045.
