Understanding RERA: How It Protects Homebuyers in Tamil Nadu

Acquiring a property is arguably a family’s largest financial commitment. Prior to 2016, homebuyers faced problems with delayed possession of their property, many changed plans, and difficulties in understanding the legal documents with almost no means of assistance. The Real Estate (Regulation and Development) Act, 2016, popularly called RERA, has made a difference. In Tamil Nadu, the Act is implemented in the letter of the law by the Tamil Nadu Real Estate Regulatory Authority (TNRERA).

What Is RERA?

RERA is an important legislation in the context of the real estate domain which provides protections to the buyers within the respective sector. It seeks to make builders and agents more accountable as well as introduce transparency in property-related transactions across a given state.

Mandatory Project Registration

According to RERA, it is mandatory for a property to be registered with the Tamil Nadu RERA before advertising or selling it. This is applicable if the land area is more than 500 square meters or if there are more than eight house units involved in the property. Builders are required to provide the project details, such as project layout, project approvals, timelines, and previous experience in executing similar projects. Whether you are planning to buy an apartment in Madhavaram, ensure you are aware of the RERA number of the property in question and check the RERA number on the TNRERA website.

Key Ways RERA Protects You

1. Your money is safe. Builders must make sure that 70 per cent of the money paid by buyers is deposited in a separate escrow account. Funds can only be used for the construction and land costs of that project, so there can be no misappropriation of funds.

2. Carpet area is the norm. Properties should be sold for carpet area, which means usable area within the walls. This puts an end to the confusion over the concept of “super built-up area” and allows for fair price comparison.

3. Delayed delivery implies compensation. If a builder does not deliver within the stipulated time, the buyer is entitled to interest on the amount paid or can withdraw from the venture with a refund of the amount paid along with interest.

4. Structural defects have to be rectified. If a structural defect is reported within five years of possession, the builder has to repair it free of cost to the buyer.

5. Advertising must tell the truth. All brochures and advertisements must be in conformity with the plan on file. False Statements Penalties.

6. Advance payment is subject to a limit. The builders cannot take more than 10% of the property’s sale price as advance payment before the execution of the registered sale agreement.

Does RERA Apply to Plots?

There are a few scenarios where RERA will still be applicable, and these include plans drawn for site sales and even residential lots. If you’re trying to sell plots in Gerugambakkam, you should ensure that your site is RERA-approved and that it has CMDA and DTCP approvals. Furthermore, the land should not be subject to any encumbrance, and you should obtain a clean encumbrance certificate.

How to File a Complaint

If the builder is found to be non-compliant with applicable building codes and standards you may file a formal complaint with the Tennessee Real Estate Commission. This process begins by submitting your information via their website. The Commission will review the details and decide whether to award the aggrieved buyer a full or partial refund. In some cases, interest or compensatory damages are awarded as well. Before making the initial submission, please have your sales agreement and payment receipts ready and on hand, in addition to all communication with the builder.

A Quick Buyer’s Checklist

• The RERA registration number has to be valid online.

• Be sure about the approved plan and fixed possession date.

• Check the sizes of the area covered mentioned in the agreement.

• Research the projects completed by the building contractor.

• Make sure all the payments are made through official means.

Final Thoughts

The property market in Tamil Nadu has become more transparent and customer-friendly because of RERA. However, it has an impact only when buyers use the facility. Verification of a few minutes can save many years.