Kerala’s real estate sector to finally get its regulator K-RERA on January 1
After much delay, Kerala is all set to formally launch its Real Estate Regulatory Authority (RERA) on January 1, 2020.
The Real Estate (Regulation and Development) Act (RERA) was implemented in India with effect from May 1, 2017. It has been over two-and-a-half years since this game-changing piece of law came into force in the country, but Kerala was yet to join the movement.
However, the wait is over as Kerala chief minister Pinarayi Vijayan will reportedly launch Kerala RERA (K-RERA) at Mascot Hotel at Thiruvananthapuram at 3 pm on 1 January. Local self-government minister A C Moideen and tourism minister Kadakampally Surendran will also likely be present at the event.
K-RERA has been constituted as per the parent Act which makes it compulsory to establish a Real Estate Regulatory Authority in each state and Union territory of the country. The law mandates every real estate project (where the total area to be developed exceeds 500 sq. metres or with more than eight apartments in any one phase) to get registered with the respective state’s RERA.
Not just projects, real estate agents or brokers also need to register themselves under RERA in order to facilitate a deal or transaction. The compulsory registration for brokers not just adds accountability and transparency to the whole process, it also filters out inexperienced, unprofessional and unethical brokers who do not follow the guidelines.
Accordingly, K-RERA has issued a notification advising all prospective allottees and buyers to verify whether their respective real estate project, or the real estate agent, is registered with the authority or not.
K-RERA also issued a notice directing that all promoters, builders and developers shall not advertise, market, book, sell or offer to sell apartments, plots of buildings from 1 January without obtaining registration from K-RERA if the apartment has more than eight units or the land proposed to be developed is more than 500 sq. m. A similar direction was issued to real estate agents that they shall not facilitate sale or purchase of plot, apartment or building without obtaining registration from K-RERA under relevant sections.