Registration under TN RERA - Tamil Nadu Real Estate Registration Authority
The TNRERA has issued directives, "All the Developer / Builder's firms are required to register their respective projects with TN RERA.”
Which Projects are exempted from registration under TN RERA?
Projects with land area of less than or equal to 500 sqmt and less than or equal to eight units. In either case registration is not required.
What are benefits of RERA registered projects?
- Right to information about the property:
This is one main advantage of the RERA Act which is in favour of the home buyer. This information can help you on multiple fronts. The Developer is entitled to share all the details regarding the projects such as plan layout, plan of execution, completion stages, the status of competition, etc. This information is easily available on TN RERA website.
- Standardized Carpet Area:
RERA has a Standardized version of how to calculate the carpet area. RERA defines carpet area as the usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment. With this definition, the builders need to clarify how much carpet area they are offering (also option to separately mention Balcony, open terrace and common areas) as the price of a property in real estate, in India, is dependent on the carpet area.
- Delivery of project in declared time schedule:
Under the RERA Act, each real estate developer needs to give a delivery date for the handover of the possession of the apartments. If the builder is not able to complete the project until the delivery date, then they will have to face penalties.
- Rate of interest on default / delay:
The rate of interest on default or delay will be the same for both parties and pre-defined in the Act. Date from which the interest should be calculated is also clearly mentioned.
- Reduced risk of mis-management of funds:
The builder is liable to deposit 70% of the funds received from the customer in a separate RERA account and with drawls from the said account for project expenses only on the basis of completion of the projects as certified by the architect and chartered Account. Thus, this will ensure that funds are not diverted from the project.
- Ensuring buyers to purchase only legally approved projects:
RERA authority mandates uploading of sanctioned plan and relevant government documents on the websites which ensures that the RERA Registration numbers only issued to legally sanctioned projects and projects home buyers from illegal projects.
- How to see progress of project on the TN RERA website?
RERA authority mandates developers to update details regarding status of construction, sales, status of development works and amenities at least once in every 3 months from the of registration.