With the state government of Tamil Nadu notifying the rules for RERA, the real estate developers are in high alert as they are not allowed to advertise or sell their projects without registering under the RERA Tamil Nadu. An official statement in June 2019 stated that the government had approved the state’s Real Estate Regulation and Development division to carry out the provisions of the RERA Act of 2016.
No builders can advertise, book, market or offer homebuyers to purchase any of their projects under Section 3(1) of the RERA Act provided it has no valid authorisation from the Tamil Nadu housing board authority – TNRERA. Besides, realtors can only release advertisements and press releases (of their projects) in the media, provided they mention their registration under TNRERA. This is how RERA is going to alter the real estate market in India.
Why was TNRERA set up?
In the pre-RERA period, home purchasers often faced inconveniences regarding property acquisition, quality of construction, late possessions, and many more. This caused severe financial stress and harassment for homebuyers in the state of Tamil Nadu. In a bid to safeguard the property seekers from these eventualities, the state government put the RERA Tamil Nadu into action.
This also implies that funding bodies will also have to comply with the objectives presented by the Act while providing Home Loan to prospective buyers. It will prove crucial for first-time property seekers as they can benefit from TNRERA features while investing in ready-to-move-in or under-construction properties.
Moreover, to further save the procurement of housing loans or any other advances, existing customers can also benefit from their pre-approved offers. These pre-approved offers are applicable on unsecured credits like personal loans, business loans and secured advances such as home loans among numerous other financial products. You can check out your pre-approved offer by sharing only a few necessary details like your name and contact number.
TNRERA guidelines for builders
The RERA Tamil Nadu has set forward a list of instructions for the promoters or builders which are as follows –
- They can file complaints and grievances online.
- Must register a real estate project under TNRERA before advertising it or putting it up for sale.
- File for extension of a particular project.
- Must update the details of a RERA registered project every quarter.
On the other hand, the guidelines for real estate agents include:
- File complaints against any promoter online.
- Renew their registration from the official website of TNRERA.
Fees and charges under TNRERA
As per the Tamil Nadu housing board authority, both the agents and builders must pay the following fees to register under TNRERA.
[A] Real estate projects registration
- Rs. 5 per sq. mt. for site approvals, plotted area layouts, excluding the EWS plots.
- For residential properties, Rs. 10 per sq. Mt. of Floor Space Index area if the size of the dwelling unit is lesser than 60 sq. Mt. If the area is more than that, then they have to pay Rs. 20 per sq. Mt. of FSI area.
- For commercial properties, realtors must pay Rs. 50 per sq. Mt. of Floor Space Index area.
- For any other miscellaneous projects, Rs. 25 per sq. Mt. of FSI area is charged.
[B] Registration fees for real estate agents
- For an individual agent, he/she must pay Rs. 25000 as registration fee.
- For an agency or more than an individual, Rs. 50000 is required as the registration fee.
That is all you need to know about Tamil Nadu RERA for builders. Keep in mind; home buyers also require to bear a fee to register grievances or complaints with the Appellate tribunal under the RERA Tamil Nadu rules.