The Tamil Nadu State Government has defined the RERA Guidelines in Tamil Nadu that the Real Estate Companies and Agents must follow. RERA – Real Estate Regulatory Authority was initiated on May 1st, 2017. The Nation believes that with the benefit of the RERA Bill, there will be more transparency in the real estate sector.
Every state has defined their RERA guidelines to benefit everyone involved in the investment process of a property – the state, the agent and the buyer. Tamil Nadu Government has also defined their guidelines which are to be followed by every Real Estate Company and agent in the State.
- Registration Process: The Tamil Nadu Government has set some registration rules for individuals or companies to follow who participate in the development and selling of real estate properties.
- It is a mandate that every real estate project and agent must be registered with RERA to proceed with any business offering in the real estate sector. If any company or individual is involved in the development and sale of any property having a built-up area of a minimum of 500 sq. Meter or a minimum number of 8 units must be registered as per RERA guidelines in Tamil Nadu.
- If found that the property is not registered under the RERA guidelines, then the sales of the property can be withheld.
- Every Real Estate Property owner must certify with an affidavit that one has the legal title to the land.
- As per RERA guidelines in Tamil Nadu 70% of the amount collected from the allottee has to be deposited into a separate account to cover the cost of land and construction.
- Only 10% or Less than 10% of the total cost of one unit can be collected from the property buyer without a specified legal agreement and the total cost of one unit should be mentioned in the written agreement.
- Every Real Estate Project must apply for a completion certificate before promoting any sale of the project. If any structural or quality issues are detected within 5 years, then the project owner has to rectify the issue within 30 days.
- Promoters Process: The Tamil Nadu Government has created strict guidelines to be followed not just in terms of the benefit of the buyer and the company, but also in terms of knowing every detail about the property. Many a times it happens that a Real Estate Company promises more beforehand but while handling the project the property buyer is not convinced of the amenities promised. These promotional guidelines will help in sorting these issues as one can promote the property only after receiving the completion certification post inspection from the Government.
The Real Estate Builders are asked to upload their project plans, type of apartments, list of plots booked, list of approvals and the registration process on the RERA Website. If anyone is found aggrieved under the Act can prefer appeal to the Appellate Tribunal. There are various penal provisions that have been prescribed under the Act, ranging from 10% of the estimated cost of the project or imprisonment of 3 years, or both.
So, the next time you decide on buying a property or building a property have a know-how of the RERA guidelines in Tamil Nadu.
Dhwani Shah for IndiaProperty.com