The Government of India enacted the Real Estate (Regulation and Development) Act, commonly known as RERA. As central legislation to regulate and promote transparency in the real estate sector. These rules were notified by the Tamil Nadu government in accordance with the central RERA Act. The Tamil Nadu RERA Act aims to address various issues in the real estate sector. For example, delays in project completion, unfair practices, and lack of transparency.
RERA protects homebuyers’ interests and promotes fair practices in the real estate industry. While RERA is a central law, each state and union territory has the authority to establish its own rules. And regulations to implement RERA provisions within their respective regions.
Key features of the Tamil Nadu RERA:
Mandatory Registration: Under the Tamil Nadu RERA, all real estate projects with an area of more than 500 square meters or more than eight apartments must be registered with the Tamil Nadu Real Estate Regulatory Authority (TNRERA) before their promotion or advertising for sale.
Real Estate Agents Registration: Real estate agents who facilitate the sale or purchase of properties must also be registered with TNRERA.
Deposit of Funds: Developers are required to deposit 70% of the funds collected from buyers into a separate bank account. So, that ensures that the funds are utilized only for the specific project’s construction and development.
Timely Project Completion: Developers are obligated to complete projects within the agreed-upon timeline, as mentioned in the registered agreement.
Transparency: The Tamil Nadu RERA mandates that developers provide complete and accurate information about the project. Also, these include details of the promoter, layout plans, approvals, and the status of the project.
Penalties for Non-Compliance: In case of any violations or non-compliance with the RERA rules, developers may face penalties or imprisonment as prescribed under the Act.
Dispute Resolution: The Tamil Nadu RERA Act establishes Real Estate Regulatory Authorities and Appellate Tribunals to address grievances and disputes related to real estate projects.
Buyer Protection: RERA provides enhanced protection for homebuyers by allowing them to seek relief and compensation for unfair practices or delays in project completion.
Generally, the Tamil Nadu RERA Act aims to bring transparency, accountability, and efficiency to the real estate sector. Also, it is benefiting both developers and homebuyers. Homebuyers are encouraged to verify if a real estate project is registered with Tamil Nadu RERA before making any purchase. This is to ensure they are dealing with a legitimate and compliant developer.
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