Buying an apartment in Kerala will be much safer now
Kochi – If you are planning to buy an apartment in Kochi, then don’t delay your decision. It is because the Kerala government will soon pass the Kerala Apartments Regulation Act.
To ensure systematic and planned development in real estate sector, a regulatory authority has been made mandatory under the act. Kerala Apartments Regulation Act will check the activities of the builders. It is assumed that this act will keep an eye on foul play by builders, the delays in executing the apartment project in any city, etc.
Currently, the draft proposal is waiting for the approval of cabinet. It says that builders must compulsory deposit a bank guarantee of 5 percent of the entire cost of the project with the regulatory authority. Other provisions include on time delivery of project, common amenities promised by the builder, a warranty period of two years for completed projects, approval from the authority for the project plan etc.
Sources of housing department believe that this step will especially affect real estate market of Kochi which houses many apartment and villa projects as compared to other cities.
As per a senior official, with the Kerala State Housing Board (KSHB), the malpractices majorly occur due to absence of laws which keep check on such moves. He added that this act will cover everything from the design of brochures for advertisement to handing over of apartments and villas to buyers. It will give right to buyers to approach regulatory body in case of any problem.
On other hand, builders said that this new act would increase more delay in permission and corruption. They requested government to approve projects with no delays via setting up a single window clearance facility.
The president of Kerala Builders Association pointed out that the 5 percent bank guarantee proposal can cause many problems. He said that an alternate proposal of bank guarantee and undertaking or furnishing of indemnity bond may be considered.
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