The Kerala Real Estate Regulatory Authority (K-RERA) has recently introduced new measures to ensure transparency and safety in the state’s real estate transactions. These changes aim to protect buyers and prevent stamp duty evasion, which has been a concern in the industry.
Mandatory RERA Certificates and Sale Agreements for Flat and Villa Registration
One of the most significant changes is the requirement for promoters to provide copies of the RERA registration certificate and the sale agreement to buyers at the time of deed registration for flats, apartments, and villas. This provision is applicable only to sales made by builders, developers, and property owners, not resale transactions.
According to the law, all flats and apartments must be registered with RERA if the property area exceeds 500 square metres or if there are more than eight units. This new measure ensures that buyers are aware of the project’s details, approved plans, and sale agreement terms before completing the registration process.
Preventing Stamp Duty Evasion and Underreporting of Building Areas
The new provision was introduced in response to concerns that stamp duty was being evaded by underreporting the actual area of buildings during deed registration. The tax department has recommended that all relevant documents and certificates be presented during deed registration to prevent such evasion.
The Inspector General, Department of Registration, has also directed that promoters should not collect more than 10 percent of the construction cost as an advance or application fee without a sale agreement. This ensures that buyers are protected from unscrupulous promoters who may misuse their funds.
Ensuring Transparency through Quarterly Progress Reports
Quarterly progress reports on construction projects under the RERA Act are essential for ensuring transparency between consumers and promoters. However, many promoters have been reluctant to submit these reports. K-RERA is taking steps to address this issue and ensure that buyers are kept informed about the progress of their projects.
Conclusion: A Positive Step Towards a More Transparent and Safe Real Estate Market in Kerala
The new measures introduced by K-RERA are a positive step towards creating a more transparent and safe real estate market in Kerala. By mandating RERA certificates and sale agreements for flat and villa registration, and implementing measures to prevent stamp duty evasion, the authority is ensuring that buyers are protected and informed throughout the purchasing process.
