Thiruvananthapuram: The Kerala Real Estate Regulatory Authority (K-RERA) has instituted new regulations aimed at enhancing transparency and safety in real estate transactions across the state.
Under the latest mandate, promoters are required to provide buyers with copies of the RERA registration certificate and the sale agreement during the deed registration process for flats, apartments, and villas. This regulation specifically targets sales conducted by builders, developers, and property owners, excluding resale transactions. According to K-RERA guidelines, registration with the authority is compulsory for all flats and apartments exceeding an area of 500 square metres or comprising more than eight units. The introduction of this provision follows concerns regarding the evasion of stamp duty through the underreporting of building areas during deed registrations. To curb such practices, the tax department has recommended that all pertinent documents and certificates be submitted at the time of registration.
Registration with RERA necessitates the inclusion of project details, approved plans, and the sale agreement. Furthermore, the Inspector General of the Department of Registration has directed that promoters are not to collect more than 10 percent of the construction cost as an advance or application fee without a signed sale agreement.
Ensuring transparency in real estate transactions, K-RERA mandates that promoters submit quarterly progress reports on construction projects. These reports are crucial for maintaining transparency between consumers and promoters. However, compliance has been an issue, as many promoters have been reluctant to submit these reports. The regulatory body is now taking measures to address and rectify this compliance gap.
The move by K-RERA to enforce stricter documentation and reporting standards is seen as a significant step towards safeguarding the interests of property buyers and ensuring a more transparent real estate market in Kerala. The enhanced regulations are expected to foster greater accountability among promoters and developers, ultimately contributing to a more robust and reliable real estate sector in the state.
