Understanding the Key Features of Kerala RERA: Your Comprehensive Guide for Home Buyers and Builders
Discover the key features of Kerala RERA for home buyers & builders. Stay informed with our comprehensive guide! #RERAKerala #RealEstateRegulationAct #HomeBuyers #Builders
The Real Estate Regulatory Authority (RERA) is a regulatory framework established by the Kerala government to bring transparency and accountability to the real estate sector in the state. RERA aims to protect the interests of home buyers and promote fair practices among builders and developers. It was introduced in Kerala in 2017, following the implementation of the Real Estate (Regulation and Development) Act, 2016 at the national level. Kerala RERA sets guidelines and regulations that must be followed by both home buyers and builders during the purchase or sale of a property.
Key Features of Kerala RERA
Kerala RERA has several key features that are aimed at protecting the rights of home buyers and ensuring transparency and accountability in the real estate sector. Some of the key features of Kerala RERA are:
Mandatory registration for projects and agents
As per Kerala RERA, it is mandatory for all real estate projects and agents to register with the regulatory authority. This ensures that all projects are legally approved and meet the necessary guidelines, and that agents are authorized to sell properties. Builders and developers must provide all relevant information about their projects, including project plans, timelines, and financial details, at the time of registration.
Transparency in project approvals and disclosures:
Kerala RERA mandates that all project approvals and disclosures, including project plans, layouts, and financial details, must be made available on the RERA website. This provides transparency to home buyers, enabling them to make informed decisions while purchasing properties. Builders are also required to update the project status regularly on the RERA website, providing real-time information to home buyers.
Escrow account requirements for project funds:
Kerala RERA requires builders and developers to open a separate escrow account for each project, where they need to deposit a minimum of 70% of the funds received from home buyers. This ensures that the funds collected from home buyers are used only for the construction and development of the specific project, preventing diversion of funds to other purposes. Builders can withdraw funds from the escrow account only in proportion to the progress of the project, as certified by an engineer, architect, or chartered accountant.
Timely delivery of projects and penalties for delays:
Kerala RERA mandates that builders and developers must adhere to the project delivery timelines mentioned in the registered project plan. In case of delays, builders are liable to pay penalties to home buyers, as mentioned in the agreement. This encourages timely completion of projects, ensuring that home buyers do not face unnecessary delays in possession of their properties.
Grievance redressal mechanism for home buyers:
Kerala RERA has established a robust grievance redressal mechanism for home buyers, enabling them to seek resolution for any issues or disputes related to their properties. Home buyers can file complaints with the RERA authority, which has the power to investigate and resolve the complaints within a specified time frame. This provides a platform for home buyers to address their grievances and seek justice in case of any disputes with builders or developers.
Provisions for quality and safety in construction:
Kerala RERA mandates that builders and developers must adhere to the quality and safety standards prescribed by the regulatory authority. Builders are required to use standard construction materials, follow approved building plans, and comply with safety norms to ensure that the properties are constructed as per the specified guidelines. This ensures that home buyers receive properties that are of good quality and safe to inhabit.
Rights and Obligations of Home Buyers and Builders under Kerala RERA
Kerala RERA provides certain rights and obligations for both home buyers and builders to ensure fair and transparent dealings in the real estate sector. Some of the key rights and obligations are:
Rights of home buyers under Kerala RERA:
- Right to obtain all relevant information about the project, including project plans, financial details, and approvals.
- Right to receive possession of the property as per the agreed timeline, and to claim compensation for delays.
- Right to receive the property as per the specifications mentioned in the agreement of sale, and to claim compensation for any defects or deficiencies.
- Right to seek resolution for any grievances or disputes with the builder or developer through the grievance redressal mechanism of Kerala RERA.
- Right to claim refund of the amount paid to the builder, along with interest, in case of cancellation of the agreement by the buyer.
Obligations of builders under Kerala RERA:
- Obligation to register the project and themselves with Kerala RERA, and to provide all required information and disclosures.
- Obligation to use standard construction materials, follow approved plans, and comply with quality and safety norms during the construction of the project.
- Obligation to deposit a minimum of 70% of the funds received from home buyers in the escrow account, and to use the funds only for the specific project.
- Obligation to adhere to the project delivery timelines mentioned in the registered project plan, and to pay penalties for delays.
- Obligation to resolve grievances and disputes of home buyers through the grievance redressal mechanism of Kerala RERA.
Benefits of Kerala RERA for Home Buyers and Builders
Kerala RERA provides several benefits for both home buyers and builders, including:
Benefits for home buyers:
- Increased transparency and accountability in the real estate sector, ensuring that home buyers have access to all relevant information about the project.
- Timely delivery of projects, reducing delays in possession of properties and providing compensation for delays.
- Protection against fraud and malpractices by builders, as the projects and agents need to be registered with Kerala RERA.
- Robust grievance redressal mechanism, providing a platform for home buyers to seek resolution for any issues or disputes related to their rights as per the provisions of Kerala RERA.
Benefits for builders:
- Streamlined and transparent registration process, providing a clear framework for builders to register their projects and operate in compliance with the regulations.
- Improved credibility and trust among home buyers, as registration with Kerala RERA signifies compliance with regulatory norms and promotes transparency.
- Protection against unfair competition, as only registered projects and agents are allowed to operate in the real estate market in Kerala.
- Access to a grievance redressal mechanism for resolution of disputes with home buyers, ensuring fair and timely resolution of grievances.
- Increased investor confidence, as Kerala RERA promotes a transparent and regulated environment in the real estate sector, attracting more investments.
Kerala RERA has brought about significant changes in the real estate sector in the state, aiming to protect the interests of both home buyers and builders. The registration process, rights, and obligations laid down by Kerala RERA ensure transparency, accountability, and fair practices in the real estate market. Home buyers can benefit from increased transparency, timely delivery of projects, and a robust grievance redressal mechanism, while builders can gain credibility, protection against unfair competition, and access to a platform for dispute resolution. By adhering to the provisions of Kerala RERA, both home buyers and builders can contribute to a regulated and transparent real estate sector in Kerala.
Note: The information provided in this article about Kerala Real Estate Regulatory Authority is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.
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