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State government notifies rules to regulate real estate

Santra Creations Pvt Ltd.Latest News & EventsState government notifies rules to regulate real estate

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July 5 , 2017 | Posted by admin | No Comments

State government notifies rules to regulate real estate

Housing Secretary is interim authority; promoter shouldn’t collect more than 10% of the total cost from allottee

The State government on Thursday notified the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017.

According to a press release, in the interim, the Secretary, Housing and Urban Development Department, will act as the Real Estate Regulatory Authority (RERA).

The rules have been notified in pursuance of the Real Estate (Regulation and Development) Act, 2016. A selection committee under the chairmanship of the Chief Justice of the Madras High Court or his representative; Secretary, Housing and Urban Development Department and Secretary, Law, will act as the selection committee to make recommendations for appointment of the Chairman and two members of Real Estate Regulatory Authority of Tamil Nadu and Appellate Tribunal of Tamil Nadu.

Registration must

As per the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, all real estate projects and real estate agents have to register with RERA, if they are involved in development and sale of any real estate project having development or built up area of 500 sq.m or where the number of units exceed eight. No sale in a real estate project can be made without registration of the project with RERA.

About 70% of the amount collected from the allottees shall be deposited in a separate escrow account to cover the cost of construction and land cost.

The developer of each project has to certify through an affidavit that he has legal title to the land on which the project is being developed free from all encumbrances and the period within which the project will be completed.

Not more than 10% of the total cost of the unit can be collected from an allottee without a specified written agreement and the total cost of the unit shall be specified in the written agreement.

All units have to be sold mentioning the carpet area of the unit. It is obligatory on the part of the promoter to obtain completion certificate for the project from the prescribed authority. The promoter is liable to rectify any structural or workmanship defect or defect in quality or provision of service or any other obligation if brought to notice within five years from the date of handing over of the possession at his cost within 30 days.

Promoter’s duties

Any person aggrieved by the decisions/directions of the Authority or adjudicating officer under the Act can prefer appeal to the Appellate Tribunal. Various penal provisions have been prescribed under the Act, ranging from 10% of the estimated cost of the project or imprisonment of 3 years, or both. The offences under the Act are compoundable.

It is mandatory for a promoter to upload the details of the proposed project on the website of RERA, including details of registration, types of apartments or plots booked and list of approvals taken. Both promoter and the buyer are liable to pay equal rate of interest in case of any default from either side.

The customer/buyer /allottee may download the required information/ plans /documents from the website.

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