Adv. Aysha Sahla K P, Senior Associate, Alishahz Legal LLP
REGISTRATION
(1)Registration of a project
(a) New project :-before starting any of the procedure for sale (advertise, market,book, sell or invite persons in any manner)- FORM A
(b) Ongoing projects for which the completion certificate has not been issued (the promoter has to apply for registration within 3 months from the date of commencement of Act) – FORM A1
The Authority has the power to grant or reject the registration (if it does not conform to the provisions of the Act) within 30days of application.
| Each projects/phase of a promoter shall be registered separately. |
Exemptions
- plot with less than 500 sq.m or less than eight numbers of apartments inclusive of all phases
- completion certificate received prior to this Act
- Renovation/repair/re-development projects
(2) Registration of Agents
(3) Promoters shall be registered
Penalty for non registration u/s 3 of the Act
Penalty of 10% of the estimated cost of the real estate project. On continued violation, the promoter shall be punishable with imprisonment for a term which may extend upto 3 years or fine which may extend upto further 10% of the estimated cost of the real estate project or both.
Validity of Registration
- In case of a project, for a period declared by the Promoter for completion of the real estate project or phase as submitted in the affidavit filed along with the application. Registration can be extended on application by Promoter upto 1 year period due to force majeure or other reasons, if any by paying fee equivalent to half of the registration fee along with explanation
- In the case of agents, the validity period is 5 years. Renewal period- not less than 30days before expiry and can be renewed for another 5years.
Registration fees
- Plot:- Rs.10/- per sq.m
- Building
- Ongoing residential:- Rs.25/- per sq.m of total floor area
- New Residential :- Rs.50/- per sq.m of total floor area
- Commercial or others:- Rs.100/- per sq.m of total floor area
| Project with construction and sale of buildingRegistration fee= fee for plot+fee for buildings. |
In case of withdrawal of application before expiry of 30 days, 10% of fee paid or Rs.50,000/- whichever is more shall be retained by the Authority and remaining amount shall be refunded within 30 days from the withdrawal.
- Agents :- Individual- Rs.25,000/-
Company/firm-Rs.2,50,000/-
- For Renewal- Individual- Rs.5,000/-
Company/firm-Rs.50,000/-
Details/Documents to be submitted for registration
- Form A or Form A1 application
- Application shall be submitted in triplicate
- Declaration with affidavit in Form B signed by the Promoter or any person authorized by the promoter
- Legal title of land or authentication of legal title such as consent of owner/copy of joint development agreement/other documents, if land is owned other than promoter
- Encumbrance of land details, if any
- Bank account documents (Escrow Account*)
- Details of enterprise/address
- Details of previous projects status(last 5 years)
- Copy of approvals/permit, sanctioned plans+specifications
- Location/demarcation of land/boundaries
- Proforma of allotment letter, agreement for sale, conveyance deed
- Number, type and carpet area* of apartments, exclusive balcony/verandah/terrace and number & areas of garages* for sale
- Name & addresses of agents, if any
- Name & addresses of contractors, architects, structural engineers other persons concerned with the development of the project
- Details regarding exclusive open terrace/balcony
- Time period of completion of project
- PAN Card copy of promoter
- Audited Balance sheet(preceding financial year) & IT Returns (3 preceding financial year) of Promoter
- Number of parking areas
- Other informations/documents specified under the Act
| *Escrow Account :-70% of the amount realized from allottees from time to time, shall be deposited in a separate a/c in a scheduled bank to cover the construction cost and land cost it shall be used only for that purpose- shall withdraw amount in proportion to % of completion of work-can withdraw only after certified by an engineer, architect and a CA in practice that withdrawal is in proportion to the % of completion A/c should be audited within 6 months after every financial year by a CA in practice & duly signed and certified statement of a/c shall be produced.*Carpet area:-Net usable floor area of an apartment excluding area covered by the external walls, areas under service shafts, exclusive balcony/verandah area and exclusive open terrace area but includes area covered by the internal partition walls of the apartment*Garage:- place within a project having a roof and walls on 3 sides for parking any vehicle, but does not include an unenclosed or uncovered parking space such as open parking areas. |
Documents required for online registration
- Pan card of agents/partners
- Aadhar card of agents/partners
- Photograph of agents/partners/directors
- Registration proof(partnership deed or COI in case of company)
- Business Pan card(in case of partnership & company)
| Note:- Filing of complaint and payment of fees shall be made online after web portal operation. |
Important points to be noted
- Promoter shall receive completion certificate/occupancy certificate/both
- Consent of 2/3rd allottees for any other addition or alteration in the project
- 70% of the funds collected from allottees needs to be deposited in the project account.
- Promoter shall not receive more than 10% of the cost of project as advance before entering into sale deed.
- Promoters shall not transfer the project to another without obtaining consent from 2/3rd allottees.
- Promoter shall obtain insurances
- Rate of interest payable by Promoter/allottee shall be the SBI’s Benchmark Prime Lending Rate+2% and shall be computed as simple interest
MANNER OF FILING COMPLAINTS
- Complaint before the Authority:- Under Sec.31 r/w rule 37 for any violation of the Act/Rules and Regulations.
- Form M + Rs. 1000/- fee (DD Drawn on scheduled bank payable at Trivandrum in favour of “Kerala Real Estate Regulatory Authority)+Rs. 500/- postage charges
- Three sets of complaints + sufficient number of copies required to be sent to the respondents– by registered post or in person in office.
- Vakalat/Memo of Authorization(in case of authorized person other than advocate)
- Complaint before the Adjudicating Officer:- Claim for compensation u/s 12,14,18&19 of the Act
- Form N + Rupees 1000 fee (DD Drawn on scheduled bank payable at Trivandrum in favour of “Kerala Real Estate Regulatory Authority) + Rs. 500/- postage charges
- Three sets of complaints OR three sets of counter statement/reply + sufficient number of copies required to be sent to the respondents + supporting documents – by registered post or in person in office
- Vakalat
Appeal:
Every appeal must be preferred within 60 days from the date of direction or order or decision made by the Authority or Adjudicating officer or the competent authority or the aggrieved person. Every appeal must be filed in triplicate in form ‘L’ along with fees of Rs. 1,000 through DD and a true copy of the order against which appeal is filed. The Appellate Tribunal shall endeavor to dispose of the appeal within 60 days from the date of receipt of an appeal.
When the Promoter intends to appeal against an order of the Authority/ Adjudicating Officer against imposition of penalty, the Promoter has to deposit at least 30% of the penalty amount/ such higher amount directed by the Appellate Tribunal [Sec.43(5)]
| [Kerala Appellate Authority: St. Vincents Road, Kacherippadi, Ernakulam] |
Any person aggrieved by any decision or order of an Appellate Tribunal can file an appeal to the High Court within 60 days from the date of receipt of the Appellate Tribunal’s decision or order.
References:-
Real Estate (Regulation and Development) Act;
Kerala Real Estate (Regulation and Development) Rules