Thiruvananthapuram: The Kerala Real Estate (Regulation and Development) Act, 2015, which seeks to establish a Real Estate Regulatory Authority that will bring all projects under the scanner, was passed in the Assembly on Wednesday. It empowers the Authority to revoke the registration of a real estate developer if he misleads the consumer in any manner, like offering a service which he is incapable of providing or making false claims about approvals.
Urban affairs minister Manjalamkuzhy Ali said that the Authority would bring about transparency in the sale of land and also in the sale, construction, maintenance and transfer of buildings constructed for residential and commercial purposes. The Authority, the Act says, will both “regulate and promote” the real estate sector. It will ensure the sale of plot or building in an efficient and transparent manner and protect the interests of consumers in the real estate sector. The Bill also envisages the setting up of an Appellate Tribunal to hear appeals.
All real estate projects, be it plots or villas or residential complexes, should be registered with the proposed Authority. The Act states that no promoter can book, sell or offer for sale or invite persons to purchase any plot or building in any real estate project without registering the real estate project with the proposed Authority. Registration is not required only if the land area proposed to be developed does not exceed 1000 sq mts or if the number of building units proposed to be developed does not exceed 12.
Further, each phase of a real estate project will be considered as an independent project, and the promoter has to obtain registration under the Act for each phase.
The Act also grants sweeping rights to allottees, or the persons to whom a plot or building has been allotted. The allottee will be entitled to claim the refund of amount paid from the promoter if the latter fails to comply with the deadline of the handover in accordance with the terms of agreement.
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