Thiruvananthapuram: The Kerala Real Estate Regulatory Authority (K-RERA) has introduced measures to ensure safety and transparency in real estate transactions across the state. A new provision now mandates that promoters must 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 requirement applies exclusively to sales made by builders, developers, and property owners, and does not extend to 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.
The new provision was introduced following 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.
When registering with RERA, project details, approved plans, and the sale agreement must be included. The Inspector General, Department of Registration, has directed that promoters should not collect more than 10 percent of the construction cost as an advance or application fee without a sale agreement.
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, and steps are being taken to address this issue.