Kerala RERA Rules Kerala Real Estate(Regulation & Development) Rules, 2018 -

Kerala RERA Rules

Kerala Real Estate (Regulation & Development) Rules, 2018

 

Kerala has notified the Kerala Real Estate (Regulation and Development) Rules 2018 on 18^th June 2018 vide GO (P) No. 46/2018/LSGD and has constituted Kerala Real Estate Regulatory Authority on 5^th 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 Kerala RERA Rules, applicability for Registration real estate project, documents, information required to file application for grant of registration, extension, revocation.

 

Details	Details
Official Kerala RERA Website	https://rera.kerala.gov.in/
Kerala RERA Office Address	Swaraj Bhavan, 5th Floor, Nanthancode, Kowdiar PO, Thiruvananthapuram 695003
Email	info.rera@kerala.gov.in
Filing of Application	Manual Filing / Submission till webportal is ready

 

 

 

Authenticated Copy – Rule 2('C) of Kerala RERA	Self-Attested copy of any document required to be provided
Registration of Real Estate Projects with Authority – Rule 3
Rule 3(1)	Application in Form A – in Triplicate For New Projects (means all Statutory Approvals and permits have been obtained on or after 1-5-2017)
Rule 3(2)	Application in Form A 1 – in Triplicate For Ongoing Projects (means Occupancy Certificate has not been issued as on 1-5-2017)
Registration Fee – Rule 3(4) Note - 1)     Project involving construction and sale of building, total registration fee = plot fee + buildings fee 2)     Floor Area – as specified in permit issued by competent authority	1)     By way of Demand Draft drawn on any scheduled Bank 2)     Fee Amount is as per the Table -   Type of Project Rs. Per Sq Meters Fees payable On Plots 10 Plot Area Building – Ongoing Projects – Form A1 25     Total Floor Area Building – New Projects – Form A 50 Building – Commercial or any other projects 100
List of Documents – Rule 3(5)	1)     All documents as per Sec 4(2) 2)     Form B (Sec 4(2)(l) Clauses A to F)
Withdrawal of Application Rule 3(6)	1)     Application for withdrawal shall made within 30 days of filing application for grant of registration 2)     Authority will retain 10 % or Rs.50,000 whichever is more towards processing fees 3)     Balance will be refundable within 30 days from such withdrawal
Rule 4 – Additional information and documents to be furnished -	1)     PAN 2)     Audited BS, ITR for preceding 3 years 3)     No of Parking Available 4)     Legal title Deed 5)     Details of encumbrance on Project Land 6)     Development Agreement / MOU
Rule 5 – Disclosure in case of Existing (ongoing) Project	1)     All documents as prescribed in Rule and Act 2)     Status of the Project and Extent of Completion 3)     Sold details - Size of the apartment in Carpet Area 4)     Sold details – area of plots

 

Rule – 6 Withdrawal of sums deposited in separate bank account – Sec 4(2)(l)(D)	1)     Land cost – shall be cost incurred by the promoter (whether outright purchase / lease charges etc) 2)     Construction Cost – cost incurred towards on-site and off-site expenditure for physical development of the project
Rule 7 – Grant of Registration of the Project	1)     Registration Certificate in Form C 2)     Rejection shall inform in Form D (however 15 days or such time may be provided to rectify the defect application before rejection)
Rule 8 – Extension of registration of Project	1)     Before expiry of 3 months prior to expiry of registration granted 2)     Fees – 50 % of registration fees 3)     Reason for such delay 4)     Documents 5)     Force majure – fees may be waived off 6)     Extensions maximum of 1 year
Rule 9 – Revocation of registration	As per Sec 7 of the Act

 

 

Rule 10 – Agreement for Sale	As per Annexure A
Rule 11 – Real Estate Agent Registration	1)     All Documents 2)     Application Form in Form G 3)     Fees a.      Individual Rs.25,000 b.     Non Individual Rs.2.50 Lacs
Rule 18 – Interest Rate, Timelines	1)     SBI PLR + 2 % 2)     Refund with in 45 days from the due date (AFS Clause 7.5)

 

 

 

 

 

Vinay Thyagaraj is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants, has over 18 years of experience in Business Consulting, Structuring and Taxation. Presented business, taxation technical papers and participated at various symposiums, forums. Regular speaker at various regional TV channels on financial matters, budget etc. Has been working on The Real Estate (Regulation and Development) Act 2016 since the inception of the Act with a view to understand financial, business impact of the Act on the organization and Industry, helping promoters to implement the best practices under RERA. Travelled across south Indian states to deliberate, discuss, present technical papers on RERA. Presented more than 100 technical sessions on RERA to Industry Associations, Professionals, home buyers association, Law universities and for public at Large. He is also financial consultant at RERA Consultants LLP

 

Responsibility of the Promoters / land owners in case of joint development under RERA -

Updates on RERA - Responsibility of the Promoters / land owners in case of joint development under RERA -

Karnataka RERA has issued various circulars and notifications during 2019-20. Below is the important for all the stake holders -

Sl No	Topic	Details
1	Responsibility of the Promoters in case of joint development	1.       Clarified that both the Landowner and Builder / developer is jointly liable for the functions and responsibilities specified in the Act in the same manner as the promoter who actually obtains building permissions and carries out construction   2.       Developer promoter shall register the project including the share of landowner promoter   3.       Developer promoter to monitor the transaction to be done by Landowner to comply with Sec 4(2)(l)(D) of the Act – financial management of 30/70   4.       Obligation and liabilities of all such (landowner / builder) shall be at par with each other   5.       Development agreement shall clearly specify the details of the rights and shares of each promoter. Same should be uploaded in K RERA Website   6.       Joint affidavit shall be uploaded (Developer and all Landowners)   7.       Developer is liable to provide the details of transactions carried out by the Landowner and shall ensure by asking to deposit 70 % of the sale proceeds to realized to the designated account of the real estate project.   8.       Developer shall comply with Rule 15 including quarterly update of the entire project (including landowner transaction)
		In case of any Joint development agreements entered, developer and landowner shall have clarity on various compliances under RERA starting from Registration of project, deposit of money in Project Designated bank account, operation of such bank account, withdrawal of money based on proportionate completion method.   It is important for the developer to communicate on regular basis on development on RERA and compliances there on. Collect information from Landowner in a standard format, which includes agreement entered, money realized, sale deed executed etc. Reporting of transaction of landowner to RERA is the responsibility of developer. Such information shall be included and considered while filing Quarterly Updates as per the Act and Rules   Standard Procedure shall set by the Developer in communication with the land owner, collection of details and reporting to authorities from time to time in order to comply with the Act and Rules.

 

Click here to download the circulars / notification https://rera.karnataka.gov.in/circularPage

Vinay Thyagaraj is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants. You can write on vinay@vnv.ca to seek more clarification

Completion of Project under RERA

   

Completion of Project under RERA

 

The main objective of Real Estate (Regulation and Development) Act, 2016 (RERA) is to enhance transparency, accountability in the real estate related transactions by creating a systematic and a uniform regulatory environment, thereby protecting consumers' interest and making promoters liable for timely completion of projects along with committed specifications, facilities and amenities.

 

In order to achieve the main objective of the Act, it is mandatory that there shall exist a mechanism to ensure all the promises made by the promoter is delivered in real and true sense.

 

RERA Act and Rules doesn't define the definition of completion of real estate project. However while looking at the objective, intent of the Act, one can reasonably state the project is completed once following is ready and delivered by the promoter (apart from complying with functions and duties of promoters U/.s 11 of the Act)

 

1.      Completion of Internal Development works

2.      Completion of development of Amenities, facilities as per sanction plans

3.      Completion and honouring of all Promises, committeemen made as per Agreement of sale,

4.      Completion of all details provided as part marketing / advertisement collaterals

5.      Completion of External Development works

6.      Obtain Occupancy Certificate

7.      Obtain Completion Certificate stating that project is completed in all aspects 

 

 

Each state may adopt different system / process / procedure for the purpose of reporting of completion by the promoter.

 

1.      As Act mandates the start date and End date of project registration. End date shall be mentioned in the application for grant of RERA Registration. It is the duty of the promoter to complete the all development in the project in all aspects within the time (End date) as provided in the RERA Registration certificate of the Project.

 

2.      In Case Promoter not able to complete the development of the project within the time as provided in the RERA Registration certificate, then file an application with authorities as per Sec 6 of Act for request for extension of time for completion of the project.

 

3.      Authority may consider the application for extension and grant the permission for extension by collecting necessary details, documents and appropriate fees. Such extension is permitted for maximum of one year.

 

4.      It is the duty of the Promoter to complete all the development works within such extended time and file for the completion application.

 

5.      Having filed application for completion (depends on state to state process) authority may verify the completeness of development of project including complete filing of quarterly updates and upload of / submissions of all professional certificates as per Act from time to time.

 

6.      Few states are proposed to set up a special task force to visit and inspect at the project site and verify the completeness of development of project.

 

7.      Once the authority is satisfied with the complete development of project, authority may confirm, or issue completed certificate.

 

8.      Once the project is complete in all aspects, then Promoter is free to withdraw and utilise the surplus money lying in project bank designated account (over and above the estimate cost of construction as declared in registration application)

 

9.      It is the duty of the professionals to educate / advice their real estate clients on important aspects of completion of development of project under RERA. As we are all aware that penalties for non-compliance U/s. 61 of the Act is high (upto 5 % of estimated cost of the real estate project)

 

 

Various relevant Definitions for this Article -

 

 

Sec 2(t)

*development works* means the external development works and internal development works on immovable property;

 

Sec 2(zb)

*internal development works* means roads, footpaths, water supply, sewers, drains, parks, tree planting, street lighting, provision for community buildings and for treatment and disposal of sewage and sullage water, solid waste management and disposal, water conservation, energy management, fire protection and fire safety requirements, social infrastructure such as educational health and other public amenities or any other work in a project for its benefit, as per sanctioned plans;

 

Sec 2(w)

*external development works* includes roads and road systems landscaping, water supply, seweage and drainage systems, electricity suply transformer, sub-station, solid waste management and disposal or any other work which may have to be executed in the periphery of, or outside, a project for its benefit, as may be provided under the local laws;

 

 

 

Sec 2(q)

 

*completion certificate* means the completion certificate, or such other certificate, by whatever name called, issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws;

 

Sec 2(zf)

 

*occupancy certificate* means the occupancy certificate, or such other certificate by whatever name called, issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation and electricity;

 

 

 

Author Mr CA Vinay Thyagaraj is from Bangalore, practicing and advice all stakeholders of the industry in relation on RERA. For any clarifications, please write to vinay@vnv.ca