The Real Estate (Regulation and Development) Act was passed by the government of India in 2016. However, all the sections of the Act came into force by 2017. The Kerala government established Kerala Real Estate Regulatory Authority in 2019 for promoting and regulating the real estate sector in the state. The Real Estate (Regulation and Development) Act aims at habilitating the real estate section in the country. There are many components to the act and a few important ones are addressed below. Knowing the components of the Act can be beneficial for you when buying or selling flats in Kochi or any other city in Kerala.
All residential and commercial real estate projects need to be registered except for projects where
All real estate agents should be registered under this act and no agent should perform the sale or purchase any plot, building, or apartment in a real estate project without being registered under this section. A real estate agent who has not yet registered shall be accountable to pay a penalty of 10,000 rupees per day during which the default continues. This penalty can cumulatively extend up to 5% of the cost of the buildings, plot, or apartment for which the purchase or sale has been facilitated.
Any aggrieved person can file a complaint with K-RERA regarding any registered real estate project for any contravention or violation of the provisions of the Act. K-RERA can establish an adjudicating mechanism for the fast redressal of these complaints. If you are not satisfied with the decision by K-RERA or an adjudicating officer, you can file an appeal before the Appellate Tribunal and if you are not satisfied with the decision of the Appellate Tribunal, you can file an appeal to the High Court of the state.
These are just some of the components of the Real Estate (Regulation and Development) Act and having an understanding of these things can be helpful to you when buying villas in Cochin or other cities in the state.