TNRERA Registration guide

The Tamil Nadu RERA act has made waves in the way real estate functions in the state. Introduced to combat fraud in real estate transactions, this act aims to regulate the sale and purchase of the property. 

Investments in real estate are considered to be risky because  of unexpected factors in the real estate sector such as delayed possession, poor construction quality, etc. As per the RERA Act, each state must have its own RERA body  that regulates real estate. Similarly, the Tamil Nadu Rera Act was passed in March 2016 and caters to the real estate body of Tamil Nadu.

Here is what you need to know about the act.

Functions of RERA Tamil Nadu

1. To cater to and empower home buyers and real estate developers.

2.To create a transparent real estate market that values accountability from all stakeholders.

3.Offer speedy redressal for the concerns raised.

4. Foster a favourable environment to promote real estate investments.

5.To ensure that projects are executed in a prompt and efficient manner. 

6.To standardise the development of real estate projects across the state.

What Projects Need to be Registered Under RERA?

Any property that exceeds five hundred square meters or projects involving more than eight apartments are to be registered with TNRERA. The Act also states that, in case the projects is outside the Chennai Metropolitan Area, the promoter is required to intimate details regarding the structural completion to the local planning authorities within 15 days from the date of notification. The Director of Town and Country Planning office must also be intimated to exclude the project from the ambit of RERA registration.

In furtherance of its ‘housing for all’ vision, the government has exempted projects under Tamilnadu Slum Clearance Board and affordable housing projects of the Tamil Nadu Housing Board and housing, from the registration fee. On the failure to comply with the Act’s provisions, both promoter and the buyer can be made liable to pay an equal rate of interest.

You can check the registration of projects in the following manner:

1. Open the TNRERA official website

2. Select the ‘registration’ tab to search for projects.

3. Select the registered projects tab.

4. A portal shall open up showing the information of all projects registered between 2017-present in both Tamilnadu and Andaman and Nicobar Islands (based on your choice of location).

The TNRERA regulations has put a check and balance on real estate transactions and has helped regulate property sale and purchase since 2016. In order to bring trust and accountability to the market and promote credible demand, it has helped protect the interest of all stakeholders in the real estate business. 

Impact of TNRERA

RERA aims to make real estate transactions more transparent and increase the accountability. The Act also gives the home-buyer the right to get their sum refunded in cases of delay in the sale of the property.  It helps in increasing the confidence of the consumers.The introduction of TNRERA has been beneficial in increasing the market demand for properties in Tamil Nadu.

Tamil Nadu RERA: Impact on developers

It has been postulated by Colliers Research that the holding cost for developers will increase with RERA, considering they must disclose all information of their ongoing and upcoming projects and ensure compliance with the act. However, due to the demonetization and additional changes in the economy, the impact of rising costs are unlikely to affect the home-buyer.

In addition, Chennai recorded about 2,300 units of new launches in Q1 2017, majorly contributed by reputed developers, whereas, small developers have adopted a wait-and-watch approach. Developers are also focusing on completing their existing projects and clearing their inventory. On successful implementation of RERA, we expect the market to witness consolidation of small builders and fly-by-night developers, while the organised developers will make bigger endeavours.

Therefore, improved project planning, obtaining all necessary approvals on time and use of modern construction technologies to speed up the construction process, will help developers to avoid delays, manage project funds efficiently and align themselves with all the RERA guidelines for a smoother transition.

Complaints to Authority

If you would like to register any grievances with your transaction, you have the right to do so under TNRERA. Here is how you do it.

1.Download Form M. After filling up the details, you will have to pay an online fee of Rs 1,000.

2. Submit not less than three copies of details of the complaint which needs to be forwarded to the respondent along with proofs and documents duly attested on all pages. You can send this to the authority as registered post or you could go to the office.

3.The copies must reach the office within seven days of filing the complaint online for Tamil Nadu-based cases and within 10 days for Andaman-based cases.

4.Complaint can be presented by the complainant or by an advocate.

5.The complainant must also pay a sum of Rs 600 online towards postal charges incurred by the authority.