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09

GOVERNMENT OF KERALA

Law (Legislation-C) Department

NOTIFICATION

No. 8052/Leg. C1 /2015/Law. 3rd February, 2016 Dated, Thiruvananthapuram, 20th Jvlakaram, 1191 14th Magha, 1937.

In pursuance of clause (3) of A1iicle 348 of the Constitution of India, the Governor of Kera la is pleased to authorise the publication in the Gazette of the following 'translation in English language of the Real Estate (Regulation and Development) Act, 2015 (5 of 20 16).

By order of the Governor,

D. S A.IU,

SjJecial Secretmy (Law).

[Translation in English of "2015 - 6)eJ <£cfua>~ olcwro8 n(j)<2~cJ (m1CWLCTID6TDOJJo ruldhffi.lmOJ,lo) ~cfu'g" published under the authority of the Govemor.]

ACT 5 OF 2016

THE KERALA REAL ESTATE (REGULATION AND .

DEVELOPMENT) ACT, 2015

AN

ACT

to provide for th e establishment of" a Regulatory Authority for regulation and promotion o( the real estelle sector and to ensure sale of"plot or building. as th e ~'ase may be, in an effici ent a;uf transparent manner and to protect the interest of" consumers in the real estate sector and lV cswblish an Appellate Tribunal to hear appeals .fi·01n the decisions. directions or orders o{ th e Authority and for matters connected therell'ith or incidental thereto. Preamhle. - WH EREI\ S, it is expedient to . provide for the establishment of a Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot or building, as the

. case may be, in an· efficient and transparent manner and to protect the interest of the consumers in the real estate sector and to establish an Appellate Tribunal to hear appeals from, the decisions, directions or orders of the Authority and for matters connected therewith or incidental thereto; BE it enacted in the Sixty-sixth Year of the Republic of India as follows:-

1. Short iitle and commencement. - ( 1) This Act may be called the Kerala Real Estate (Regulation and Development) Act, 2015. _(2) It shall be deemed to have come into force on the 4th day of May, 2015.

2. De.finitions.- (1) In this Act, unless the context otherwise reqUires,-

(a) "advertisement" means any document described or issued as adverrisement through any fonn of media and includes any notice, circular or other documents offering for sale of a plot or building inviting persons to purchase in ·any manner such plot or building or to make advances or deposits for such purposes;

(b) ' 'allottee" in relation to a real estate project, means the

. person to whom a plot or building has been a~lotted , sold or otherwise transferred by the promoter and includes the person who subsequently acquires the said allotment through sale, transfer or otherwise, but does · not iriclude a person to whom such plot or building is given on rent; ·(c) "apartment" whether called dwelling unit, flat, premises, suite, tenement, villa, unit or by any other name, means a separate and self- contained part of any immovable property located on one or more floors or any part thereof, in a building block or on a plot of land, used or intended to be used for residential purposes, or for any either type of independent

"'" use ancillary to the purpose specified and includes · any covered garage, whether or not adjacent to the building block in which such apartment is located which has been provided by the promoter for the use of the allottee for parking any vehicle, or as the case may be, for the residence

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of any domestic help employed in such apartment;

(d) ' 'Appellate Tribunal " means the Real Estate Appellate Tribunal established under sub-section (1) of section 37;

(e) "architect" means a person registered as an architect under the provisions of the Architects Act, 1972 (Central Act 20 of 1972);

(f) ''association" means the association of allottees registered under section 1 0 consisting of allottees in a colony and includes mi apex association;

(g) ·'Authority" means the Real Estate Regulatory Authority established under sub-section (1) of section 20;

(h) " building" means a building unit or a building block or an apartment;

(i) "building block" includes any structure or erection or part of a structure or erection which is intended to be used for residential, commercial , business or office purposes, information technology and information technology enabled services with limited common areas and parking spaces ;

G). "building pennit'" means any petmit issued by the competent authority to begin development works in an immovable propetiy;

(k) ·'building ui1it' ' means a separate and self contained unit in a building block;

(I) "carpet area" means the net usable floor area of an apa1iment, excluding the area covered by the external walls;

. (m) "Chairperson" means the Chairperson of the Real Estate Regulatory Authority appointed under section 21;

(n) "colony" means an area of contiguous land divided or proposed to be divided into plots or buildings with common areas in a real e.state project;

;.

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(o) "common areas" means the areas intended for the common use of all the allottees in a colony and include the following, namely:-'--

(i) the part of the site or plot not occupied by buildings;

(ii) the common basement, parts, play areas, guest parking areas, if ahy and common storage spaces;

(iii) the premises for the lodging of persons employed for the management of the property including acconnuodation for watch and ward staff;

(iv) installations of central services such as electricity, gas, water and sanitation, air-conditioning and incinerator, rainwater harvesting and waste disposal;

(v) water tanks, sumps, motor, fans, compressors, ducts and all apparatus connected with installations for common use;

(vi) community and commercial facilities as may be provided and managed by the association;

(vii) all other portions of the property necessary or convenient for its maintenance, safety etc ., and in common use;

(p) "company" means .a company incorporated and registered under the Companies Act, 2013 (Central Act 18 of 2013) and includes,-

(i) a corporation established by or under any Cemral Act or State Act; •

(ii) a Development Authority or any public authority

. established by the Government in this behalf under any faw for the time being in force;

( q) "competent authority" means the Local Self Government Institution or any Authority established under any law for the time being in force which has power to give permission for development as mentioned in clause (r) of section 2; ·

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(r) ' 'development" means carrying out the development of immovable property, engineering or other operations in, on, over or under the land or the making of any material change in any immovable. property or land and includes re-development;

(s) "development works" mean the external development works and internal development works on immovable property;

(t) "engineer" means a person who pos~:?esses a bachelor's degree in Engineering or equivalent qualification from an inst itution recognized by the All India Council for Technical Education or registered as an engineer under any law for the time being in force;

(u) "estimated cost of real estate project" means the total cost involved in developing the real estate project and includes the land cost;

(v) "external development works" include roads and road systems, landscaping, water supply, sewerage and drainage systems, electricity supply transformer, sub-station or any other work which may have to be executed in the periphery of, or outside, a colony for its benefit, as may be specified under the rules or bye-laws of the competent authority;

(w) "Government" means the Government of Kerala;

(x) " immovable property" includes land, building, right of way, light or any other benefit arising out of land and things attached to the earth or pennanently fastened to anything which is attached to the earth, but does not include standing timber, growing crops or grass;

(y) " interest" means the rates of interest payable by the promoter or the allottee, as the· case may be;

(z) " internal development works" mean roads, footpaths, water supply, sewers, drains, parks, conservation of trees, street lighting, provision

for community building and for treatment and disposal of sewa·ge and sullage water. social infrastructure such as educational, health and pther public amenities or any other work in a colony necessary for its preper development:

(aa) " limited common area'' means the area intended for the use _.. of allottees in one building block and includes entrance hall, staircases, lift, common passages on all tlo_?rs, ~ammon parking areas, tire escapes, refuge areas, service floors, terraces above the upper most floor and all common areas in the building block;

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(ab) ·'Local Self Govemment Institution" means a ·Panchayat constituted under section 4 of the Kerala Panchayat Raj Act, 1994 ( 13 of 1994) or a Municipality constituted under section 4 of the Kerala Municipality Act, 1994 (20 of 1994);

(ac) ''Member" means the member of · the Real Estate

Regulatory Authority appointed under section 21 and includes the Chairperson;

(ad) "Notification" means a notiticati0n published in the Official Gazette;

( ae) '·occupancy certificate" means the completion ce1tificate, or such other certificate, as the case may be, issued by the competent authority permitting occupation of any builditl.g under any law for tl1e time ~ being in force:

(at) "person" includes,-

(i) an individual;

. (ii) a Hindu undivided family:

(iii) a company;

(iv) a finn;

(v) a competent authority;

(vi) an association _of persons or a body of individuals

. whether incorporated or not;

(vii) a co~operative society registered under any law relating to co-operative societies;

(viii) any such other entity as the Government may, by notification specify in this behalf;

(ag) '·prescribed" means prescribed by rules made under this Act;

(ah) '·project" means the real estate project under this Act; (ai) '·promoter'' means,-

(i) a person who constructs or causes to be constructed a building or converts an existing building or a part thereof for . the purpose of selling all or part of the same to other persons and includes his assignees and a buyer who purchases in bulk for resale; or

(ii) a person who develops a colony tor the purpose of selling to other persons all or some of the piots, whether with or without structures thereon; or

(ili) any development authority or any other public body in respect of allottees ot: -

(a) buildings constructed by such authority or body on lands owned by them or placed at their disposal by the Government; or

(b) plots owned by such authority or body or placed at their disposal by the Government;

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for the purpose of selling all or some of the apartments or plots; or

(iv) an apex co-operative housing fii1ance society and a primary co-operative housing society which constructs buildings for its Members or in respect of the allottees of such buildings; or

(v) any other person who acts himself as a builder, colonizer, contractor, developer, estate developer or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building is constructed or colony is developed for sale; or

(vi) such other person who constructs any building for sale to the general public.

E>.planation. - For the purposes of this clause .. where the person who constructs or converts a buildipg or develops a colony for sale and the person who sells building or plots are different persons, both of them shall be deemed to be the promoters;

(aj) "prospectus" means any document described or issued as a prospectus or any notice, circular, or other document offering for sale of any real estate project or inviting any person to make advances or deposits for such purposes:

(ak) "real estate agent" means any ' person, who negotiates or acts on behalf of one person in a transaction of transfer of his plot or building, as the case may be, in a real .estate project, by way of sale, with another person or transfer of plot or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services wl)ether as a commission or otherwise and includes a person who introduces prospective buyers arid sellers to each

. other for negotiation for sale or purchase of plot or building, as the case may be, and includes property dealers, brokers, middlemen by whatever name called:

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(al) "real estate project" means the development of a building or conversion of an existing building or a pa1t thereof or the development of a colony into plots or buildings, as the case may be, for the purpose of selling all or a!1Y of the said plots or buildings and includes the development works thereof;

(am) "regulations" means the regulations made by the Authority under this Act.

C!J A PTER II

REGISTRATION OF REAL ESTATE PROJECT AND

REGISTRATION OF REAL ESTATE AGENTS

3. Registration of Real Estate Project. - (1) No .promoter shall book, sell or offer for sale, or invite persons to purchase in any manner any plot or building, as the case may be, in any real estate project, or part of it, Without registering the real estate project with the Real Estate Regulatory Authority established under this Act:

Provided that no such registration shall be required,-

(a) where the area of land proposed to be developed in a real estate project does not exceed one thousand square metres;

(b) where the number of building units proposed to be developed in a real estate project does not exceed twelve:

Provided further that where the total carpet area of the building units proposed to be developed exceeds three tho.usand square metres, registration shall be required.

(c) where the promoter has received all requisite approvals/ permits for the development of the real estate project prior to commencement of this Act;

(d) for the purpose of renovation or repair or re-development which does not involve re-allotment and marketing of the real estate project:

Provided that any promoter may register any Real Estate Project subject to the provisions of this Act before the Real Estate Authority as · per this Act.

Explanation._:_For the purpose of this section, where the . real estate project is to be developed in phases, every such phase shall be considered as an independent real estate project, and the promoter .

" · shall obtain registration under the Act for each phase separately.

(2) Every promoter shall make an application to the Authority for registration of the real estate project in such form, manner, within such ~ time and accompanied by such fee, as may be specified, by the regulations made by the Authority.

(3) The promoter shall enclose the following documents along with the application referred to in sub-section (2), namely:-

(a) brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, society, partnership, company) and the particulars of registration;

(b) an authenticated copy of the building permit from the· competent authority obtained in accordance with the laws as may be applicable for the real estate project mentioned in the application, and· where the project is proposed to be developed in phases, an authenticated copy of the approval and sanction from the competent authority for each .

. of such ph~ses;

. (c) the layout plan of the proposed project or the phase thereof, and also the . layout plan of the whole project as sanctioned by the f competent authority;

(d) the plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof;

(e) pro forma of the agreements proposed to be signed with the allottees;

(f) the number and the carpet area of apartments for sale in the project;

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(g) the names and addresses of his real estate agents, if any, for the proposed project;

(h) the names and addresses of the contractors , architect , structural engineer, if any, and other persons concerned with the development of the proposed project;

(i) a declaration, supported by an affidavit, which shall be si!:,>Tied by the promoter or any person authorised by the promoter,-

(i) that he has lega l title to the land · on which the development is proposed along with a legally valid authentication of such title if such land is owned by another person;

(ii) that the land is free from all encumbrances, or as the case may be, of the encumbrances on such land including any rights, title, interest or name · of any party in or over such land along with details;

(iii) the specitic period of time within which he undertakes to complete the project or phase thereof;

(iv) that seventy per cent or such lesser per cent as notified by the Government, of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maititained in a scheduled bank within a period of ten days of its realisation to cover the cost of construction and shall be used only for that purpose:

Provided that in the case of project started before the commencement of this Act the amount to be deposited shall be based on the project cost to be incurred. ·

Explanation.-For the purpose of this clause, the term ' 'scheduled bank"

means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (Central Act 2 of 1934);

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(v} that he has furnished such other documents as may be prescribed by the rules · or regulations made under this Act; and

(vi) such other intonnation and documents as may be prescribed.

4. Grant ol registration .- (}) On receipt of the application urider sub-section (2) of section 3, the Authority shall within a period of fifteen days,-

(a) grant registration subject to the provisions of this Act and the rules and regulations made thereunder and provide a registration number, including a Login 10 and password to the applicant tor accessing the website of the Authority and to create his web page and to till therein the details of the proposed project; or

(b) ·reject the application for reasons to be recorded in writing, if such application· does not confonn to the. provisions of this Act or the rules or regulations made thereunder:

Providep that no application shall be rejected unless the applicant has been given an opportunity of being heard within a specified period in the matter.

(2) If the Authority fails to grant the· registration or reject the application, as the case may be, as provided under sub-section (1 ), the project shall be deemed to have been registered, and the Authority shall within five days after the expiry to the said fifteen days, provide a registration number and a Login 10 and password to the promoter for accessing the website of the Authority and to create his web page and to enter therein the details of the proposed project.

(3) The. registration granted under this section shall be valid for a period declared by the promoter under sub-clause (c) ofclause (i) of

. sub-section (3) of section 3 for completion of the project or phase thereof, as the case may be.

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(4) The Authority may, from time to time, engage independent observers to assist the Authority for verifying and reporting the factual accuracy ofthe information furnished by the promoter on such terms and conditions as may be prescribed.

5. Extension of registration.-The registration to the promoter granted under section 4 may be extended by the Authority on an application made by the promoter under such conditions, as may be prescribed, and in such form and on payment of such fee, as may be specified, by the regulations made by the Authority:

Provided that , no such extension of registration shall be granted without the written consent of the majority of the allottees:

Provided further that no application for . extension of registration shall · be rejected unless the applicant has been given an opportunity of being heard in the matter:

6. Revocation of registration.-(!) The Authority may, on receipt of a complaint in this behalf or on the recommendation of the competent authority, revoke the registration granted under section 4, after being satisfied that,-

(a) the promoter makes willful default in doing anything required of him by or under this Act or ·the rules or the regulations made thereunder;

(b) the promoter violates any of the tem1s or conditions of the approval given by the competent authority;

(c) the promoter is involved in any kind of unfair practice or irregularities;

(d) act in contravention of the purposes of this Act. Exp/anation. - For the purposes of this clause, the term ·•unfair practice" means any unfair method or unfai'r or deceptive practice adopted for the purpose of promoting the sale or development of any real estate project including any of the following practices, namely:-

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(a) the practice of making any statement or propagation whether orally or in writing or by visible and audio representation which,-

. (i) falsely represents that the services are of a particular standard or grade or carry out such activities;

(u) represents that the promoter has approvai or affiliat-ion which such promoter does not have;

(iii) makes a false or .misleading representation concerning the services;

{b) the promoter penn its the publication of any advertisement or prospectus whether in any newspaper or otherwise of services that are not intended to be offered .

(2) The registration granted to the promoter under section 4 shall not be revoked unless the Authority has given to the promoter not less than thirty days notice, in writing stating the grounds on which it is proposed to revoke the registration, and has considered any cause shown by the promoter within the period of that notice against the proposed revocation.

(3) The Authority may, instead of revoking the registration under sub-section ( 1 ), penn it it to remain in torce subject to such fmther tenus . . and conditions as it thinks tit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the ~

promoter.

(4) Upon the revocation of the registration, the Authority,-·

(a) shall debar the promoter from acce~sing its website. in relation to that project and specify his name and details including his full address in the list of defaulters on its website; ·

(b) may recommend to the competent authority to facilitate the balance of the development works to be carried out in accordance with the provisions of section 7 in a time bound manner;

(c) may, to protect the interest of prospective buyers or in the public interest, issue such directions as it may deem necessary.

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7. Obligcltion of Authority consequent on lapse or revocation l~( registration.-Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the Govemment to take such action, as it may deem fit, matters including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority and the decision of the Govemment shall be final:

Provided that no direction, decision or order of the Authority under

. this section shall take effect until the expiry of the period of appeal provided under the provisions of this Act.

8. Registration of Real Estate Agents.-(!) No real estate agent shall fac ilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot or building, as the case may be, in a real estate project or part of it, being the part of the real estate · project registered under section 3, being sold or intended to be sold by the promoter without obtaining registration under this section.

(2) Every real estate agent shall make an application to the Authority for registration in such form, manner. within such rime and accompanied by such .tee and documents as may be prescribed.

(3) The Authority shall, within such period, in such manner and s ::~ tisfying itself of the fulfilment of such conditions , as may be

. prescribed,-

(a) grant registratio!1 to the real estate agent;

(b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions in this Act or the rules or regulations made thereui.1der:

Provided that no application shall be rejected unless the applicant has been given an oppol1lmity of being heard in the niatter.

(4) Where on the completion of the period specified under sub-section (3) , if the applicant· does not receive any written communication about the deficiencies . in his application or the rejection of his application, he shall be deemed to have been registered.

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(5) Every real estate agent who is registered as per the provisions of this Act or the mles ·and regulations made thereunder, shall be granted

. . .

registration number by the Authority, which shall be quoted by the real estate agent in every sale facilitated by him under this Act.

(6) Every registration shall be valid for such period, as may be prescribed, and shall be renewable for such period, in such manner and ·on payment of such fee as may be prescribed:

(7) Where any real estate agent who has been granted registration under this Act commits breach of any of the conditions thereof 9r any other terms and conditions specified under this Act or any rules or regulations made there~nder, or where the Authority is satisfied that such registration has been secured by the real estate agent through ·misrepresentation or fraud, the Authority may, without prejudice to any other provisions under this Act , revoke the registration or suspend the same for such period, as it thinks fit:

Provided that no such revocation or suspension shall be made by the Authority unless an opportunity of being heard has been given to the real estate agent.

9. Obligations uf real estaTe agent. - Every _ real estate agent registered under section 8 shali,-

(a) not facilitate the sale or purchase of any plot or building as the case may be, in real estate project or part of it, being sold or intended to be sold by the promoter which is not registered with the Authority;

(b) maintain such books Of account. records and documents as may be prescribed and shall subject to inspection as and when required by competent authority or authority.

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(c) not involve himself in any unfair trade practices, namely:-

(i) the practice of making any statement, whether orally or in writing or by visible representation which,- -

(a) falsely represents that the services are of a particular standard or grade;

(b) represents that the promoter has approval or affiliation :

or registration which the promoter does not have;

(c) makes a false or misleading representation concerning the services.

(ii) pem1,itting the publication of any advertisement whether in any newspaper or otherwise of services that are .not intended to be offered.

(d) facilitate the possession of all documents, within a specific date as the allottee is entitled to, at the time of booking of any plot, apartment or building, as the case may be.

(e) discharge such other functions as may be prescribed.

10. Registration (~( asso(: iations .- (1) An association of allottees shall be formed by the promoter in respect of plots or buildings, in such manner as may be presctibed, within tour months from the date on which occupancy certificate is issued in respect of aU the building units or a minimum of sixty per cent of the allottees have taken possession of the building units or the promoter has received full consideration or other • amount, tor the same. vvhichever is earlier and in the case of a colony, an Apex Association shall be formed in such manner, as may be prescribed, in addition to the association representing all the associations in any real estate project and every such association and apex association shall be registered in such period, as may be prescribed. before the Authority by

filing an application in the prescribed form along wilh all documents as may be prescribed and the Authority shall, give registration number to each such association.

(2) If the promoter fails to submit an application for registration of the association within the prescribed time, the association shall be forln.ed ~ by the allottees and the same shall be registered . before the authority.

(3) Save as otherwise provided in this Act, the association shall have such rights and duties as may be prescribed.

CHAPTER III

FUNCTIONS AND DUTIES OF PROMOTER

11. Obligations .qlpromoter.-(1) The promoter shall, upon receiving his Login ID and password under clause (a) of sub-section (1) of section 4 or under sub-section (2) of section 4, as the case may be, create his web page on the website of the Authority and enter all details of the proposed project as provided under sub-secti

(a) details of the registration granted by the Authority;

(b) quarterly up-to-date list of number and types of buildings or · plots, as the case may be, booked;

(c) quarterly up-to-date status of the project; and ·

(d) such other information and documents, as may be specified, by the regulations made by the Authority.

(e) if any agent is engaged by the promoter the details inCluding the registration of the said agei1t.

(2) The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of the Authority,

wherein all details of the registered project have been entered and include the registr~tion number obtained from the A~1th01ity and such other matters incidental thereto.

(3) The promoter upon entering into an agreement of sale with the allottee, shall be responsible to make available to the allottee, the following infom1ation, namely:-:-

( a) site and layout plans along with specifications, approved by the competent authority, by display at the site or such other place, as may be specified; by the regulations made by the Authority;

(b) the stage-wise time schedule of the project, including making available provisions for water, sanitation and electricity.

(4) The promoter shall,-

(a) be responsibl e to obtain occupancy certificate from the relevant competent authority as per the laws t0r the time being in force and to make it available to the allottees individually or to the association;

(b) be responsible for providing and maintaining the essential services, as may be specified in the agreements, on reasonable charges, till the taking over of the maintenance of the project by the association;

(c) take steps for the formation of an association of the allottees and to register it within such time as may be prescribed.

(5) The promoter may cancel the allotment only in tem1s of the agreement of sale:

Provided that the allottee may approach the Authority for relief, if he is aggrieved by such cancellation and such cancellation is not in accordance with the terms of the agreement of sale, unilaterally and without any sufficient cause.

(6) The promoter shall prepare and maintain all such other details, as may be specified, from time to time, by regulations made by the Authority and shall be subjected to inspection. · ./

12. Compensation for loss .- Where any person makes an advance or a deposit on the basis of the information contained in the advertisement being given by the promoter or prospectus or on the basis of any other written information and sustains any loss or damage by reason of any incon·ect, false statement included ~herein , he shall be compensated by the promoter. in the manner, as provided under this Act:

{ Provided that if the person affected by such incorrect, false statement contained in the advertisement, prospectus or any other records intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate, as may be prescribed. ·

13. Agreement for sale.- ( I) A promoter shall not accept a sum more than ten per cent of the cost of the plot or building, as the case may be, as an advance payment, depo·sit or an application fee , from a person without first entering into a writte_n agreement for sale with such person.

(2) The agreement referred to in sub-section (1) shall be in such form , as may be prescribed. and shall specify the particulars of development of the project including the constmction of building along with specifications and external development works, the dates and the manner by which payments towards the cost of the plot OF bu~ding as the case may be, are to be made by the allottees and the likely date on which the possession of the plot or building is to be handed over and such other particulars, as may be prescribed.

14. Adherence to approved plan and project specifications by promote1:--{ I) The proposed project shall be developed and · completed by the promoter in accordance with the plans and structural designs and specifications as approved by the competent authorities.

(2) The promoter shall not alter in any manner the compulsory open spaces of the building or shall iwt alter the aggregate area of the park, recreational ground, play ground, garden etc., in the approved colony, in which allottees agreed to take one or more building units, without the consent of all such allottees except when such alteration is required by the competent authority due to change in law.

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(3) In case any defect in such building or ·materials used, occurred not due to the fault of the allottee , is brought ~o the notice of the promoter within a period of two years of handing over possession of a building unit, by the ·allottee or the association from the date of handing over possession, it . shall be the duty of the promoter to rectify such defects withoutcollecting additional charge, within reasonable time, and in the event of promoter's failure to rectify such defects within such time, the aggrieved allottees or association shall be entitled to receive appropriate compensation in the manner as provided under this Act.

15. Transfer of title.-(1) The promoter shall take all necessary steps to execute a registered conveyance deed · in favour of the allottee along with the undivided proportionate title in the common areas including the handing over of the possession of the plot or building, as the case may be, in a real · estate project, and the other title documents pertaining thereto.

(2) After obtaining the .occupancy certificate and handing over physical possession to the allottees in terms of sub-section ( 1 ), it shall be the responsibility of the -promoter to hand over the necessary documents · ana plans, including that of common areas, to the association or the competent authority, as the case may be, as per the law for the time being in force.

16. Creation of Mortgage or Charg~.-(1) No promoter shall after he executes an agreement for sale of any plot or building, mortgage or create a charge on such plot or building without the written previous con.sent of the person who has entered into such an agreement with him.

(2) Notwithstanding anything contained in sub-section (1) a mortgage or charge can be ri1ade or created by an allottee for the purpose of obtaining finance for the payment of the amount dU:e to the promoter.

17. Return of amowit .and Compensation.- ![ the promoter fails to complete or is unable to give possession of a plot or building,- ( a) in accordance with the terms of the agreement or, as the case may be, duly compl~ted by the date specified therein or any further date agreed to by the parties; or

(b) due to discontinuance of his business as a developer on account of suspension or revocation of his registration under this Act or for any other reason, he shall be liable on demand, without prejudice to any other remedy available, to return to the allottees, the amount received by him in respect of that plot or building, as the case may be, with interest at such rate, as may be prescribed, in this behalf including compensation to . the allottees, in the manner provided under this Act.

18. Rights ()f Promoter and associations consequent to change in law or policy a( Government or Local Se(f Government Institution. _:_ Notwithstanding anything contained in this Act, the promoter shall be entitled to develop and continue to develop the land belonging to the Promoter in the colony remaining after the execution of one or more phases of the real estate project with the right to use the internal access roads and all the facilities. a,menities and services in the colony and _to construct additional structures thereon by using the balance floor area . ratio and balance transfer of development 1ight and balance additional floor area ratio relating to the said colony consequent to any future increase in floor . . area ratio occurred due to change in the law or the policies of the Government or the Local Self Government Institutions:

Provided that if the floor area ratio of the plot 1n a colony is increased as stated above, subsequent to conveyance of any one or more structures to allottees, then increase in floor area ratio which is . . propo!1ionate to the t1oor area ratio utilised by the conveyed stru_cture or structures to total floor area ratio of the colony, shall belong to the association of allottees and it shall not be necessary for the promoter to

. .

. obtain any consent or. permission fron1 the association for the purpose of urilising the balance tloor area ratio.

CHAPTER IV

RIGHTS AND DUTIES OF ALLOTTEES

19. Rights and _duties o( a/lottees.-(1) The allottee shall be entitled to obtain the infonnation relating to site and layout plans along with the specifications, approved by the competent authority and such other information as provided in this Act or the rules and regulations made thereunder or the agreement signed with the promoter.

(2) The allottee shall be entitled to- know the stage-wise time schedule of completion of the project, including the provisions for water, sanitation and electricity.

(3) The allottee shall be entitled to claim the possession of plot or building, as the case may be, as per the declaration given by the promoter under sub-clause (iii) of clause (i) of sub-section (3) of section 3.

(4) The allottee shall be entitled to claim the refund of amount paid, from the promoter. if the promoter fails to comply or is unabie to give possession of the pl.ot or building, as the case may be, in accordance with the renns of the agreement or due to discontinuance of his business as a developer on account of susperision or revocation of his registration under the provisions of this Act or the rules and regulations made thereunder.

(5) The allottee shall be entitled to have the necessary documents and plans, including that of common areas, while handing over the physical possession of the plot or building, as the case may be, to the ..tlottee by the promoter.

(6) Every allottee, who has entered into an agreement of sale to rake a plot or building, as the case may be. under section 13, shall be responsible to make necessary payments i1.1 the manner and within the time as specified in the said agreement and shall pay at the proper time and place, the proportionate share of the registration charges, taxes payable, water and electricity charges, maintainance charges, ground rent and other charges. if any, in accordance with such agreement.

(7) The allottee sh.all be liable to pay interest at the rate as may be prescribed, tor any delay in payment towards any amount or charges to be paid under sub-section (6). ·

(8) . The obligations of the allottee under sub-section (6) and the liability towards interest under sub-section (7) may be reduced as pet the consent deed between the promoter and such allottee.

(9) Eve!)' allottee after taking possession of the plot or building, as the case may be, shall participate towards the fonnation of an association. CIIAPTER v

THE REAL ESTATE REGULATORY AUTHORITY

20. Establishment o( Real Estate Regulat01y Aut/u)rity.-( I) The Govemment shall, within a period of six months from the date of coming into torce of this Act. by notification, establish an Authority to be known as the Real Estate Regulatory Authority to exercise the powers conferred on it and to perform the functions assigned to it under this Act.

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with the power, subject to the provisions of this Act, to acquire, hold and dispose of :

property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.

(3) The Headquarters of the Regulatory Authority shall be at Thimvananthapuram.

21. Composition o(Autlwrity. -The Authority shall consist of a Chairperson and not less than two whole-time Members to be appointed by the Government, from among persons having special knowledge or professional experience in the field of Public Administrat.ion, Urban Developi'rient, Finance, Law or Management.