The article discusses whether RERA approval is mandatory for plots in Tamil Nadu. It highlights the benefits of RERA approval and the increasing number of RERA complaints in the state.
Introduction
The Real Estate Regulatory Authority (RERA) was established in order to protect the interests of homebuyers and regulate the real estate industry. It was introduced as a law in India in 2016, and since then, all real estate projects have been required to register with the authority before they are launched. This blog answers your question, Is RERA Approval Mandatory for Plots in Tamilnadu in detail.
The purpose of RERA law is to ensure that homebuyers do not encounter any inconvenience when purchasing a home. Many people need clarification regarding RERA approval for plots in Tamil Nadu. In this article, we will explore whether RERA approval is mandatory for plots in Tamil Nadu.
RERA Registration
As per Section 9 of the Real Estate Regulation And Development Act, 2016 no real estate agent or broker is permitted to engage in transactions involving plots, apartments, buildings, or real estate projects registered under RERA without holding a valid RERA broker license. Section 9 specifically prohibits real estate agents from facilitating or representing the sale or purchase of any part of a registered real estate project within a planning area without obtaining registration under this section.
What is RERA Approval?
RERA approval is mandatory for all real estate projects in India, including commercial and residential properties. The main aim of RERA approval is to protect the interests of the homebuyers and regulate the real estate sector. All real estate projects must register with the respective state’s RERA authority before launching the project.
The registration process involves submitting all the relevant details of the project, including the title deed, layout plan, and other approvals from the concerned authorities.
RERA Approval for Plots in Tamil Nadu
As per the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, RERA approval is mandatory for all real estate projects, including plots, apartments, and buildings. Any real estate project that involves the sale of land or plots, which is more than 500 square meters, must be registered with the Tamil Nadu RERA authority. However, if the plot is less than 500 square meters, RERA approval is optional.
One must note that RERA approval is not required to sell or transfer individual plots. If the plot is sold individually and not as a part of a larger real estate project, then RERA approval is not necessary.
Benefits of RERA Approval for Plots in Tamil Nadu
RERA approval provides many benefits for both homebuyers and developers. Some of the significant benefits of RERA approval for plots in Tamil Nadu are:
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Transparency
RERA approval ensures transparency in the real estate sector by making it mandatory for developers to register their projects and disclose all the relevant details of the project.
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Accountability
RERA provides a platform for homebuyers to register their complaints against the developers. The authority can impose penalties on developers who fail to comply with the RERA guidelines.
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Timely Delivery
RERA approval makes it mandatory for developers to complete the project on time. If the developer fails to complete the project within the stipulated time, then the homebuyer has the right to withdraw from the project and receive a refund.
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Interest on Delayed Payment
If the developer fails to deliver the possession of the to be registered property within the stipulated time, then the homebuyer is entitled to receive interest on the delayed payment.
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Consumer Protection
RERA provides consumer protection by ensuring that the homebuyers receive what the developer has promised them. If the developer fails to deliver what has been promised, the homebuyer can take legal action against the developer.
RERA Complaints in Tamil Nadu
Despite the mandatory RERA approval, there have been several cases of RERA complaints in Tamil Nadu. The complaints are mostly related to the delay in possession, quality of construction, and lack of transparency.
One of the major complaints in Tamil Nadu was the delay in the delivery of the project by a renowned builder. The builder had promised to complete the project within two years, but the project remained incomplete even after four years. The homebuyers were left in a state of distress as they had already paid a significant amount of money towards the project.
Another RERA complaint in Tamil Nadu was related to the quality of construction. The homebuyers had purchased an apartment that was advertised to be of high quality. However, after the possession, the homebuyers found out that the construction quality could have improved, and the builder had used substandard materials.
To address the increasing number of complaints, the Tamil Nadu RERA authority has taken strict action against the defaulters. The authority has imposed penalties on developers who fail to comply with the RERA guidelines. In addition, the authority has been taking steps to expedite the resolution of complaints filed by homebuyers.
Real Estate Agent RERA Registration
- Summary information about the enterprise, such as its name, registered address, and business type (proprietorship, societies, partnerships, companies, etc.)
- Details regarding registration, including bye-laws, memorandum of association, articles of association, etc., as applicable
- Photograph of the individual real estate agent or partners/directors in the case of other entities
- Certified copy of the PAN Card
- Certified copy of the residential and business address proof
- Any additional information or documents specified by the Authority in their regulations.
Responsibilities of a RERA Real Estate Agent
Avoid engaging in the transaction of selling or purchasing plots, apartments, or buildings within any unregistered real estate project or its section within a planning area, as offered by the promoter without registration with the Authority. Maintain and safeguard specified books of account, records, and documents according to the RERA Rules. Refrain from participating in unfair trade practices, including:
- Incorrectly asserts the services to be of a specific standard or quality
- Claims the promoter or oneself possesses approval or affiliation that isn’t true
- Presents false or misleading information about the services
- Allows the advertisement, whether in newspapers or elsewhere, of services that are not intended to be offered.
Ensure the provision of all necessary information and documents to the allottee during the booking of any plot, apartment, or building.
Fee for Real Estate Agent RERA Registration
The Tamil Nadu RERA registration fee for real estate agents is ₹25,000 for individuals and ₹50,000 for corporate entities (e.g., companies, partnerships, LLPs). During the license application, payment of the government fee is required through a Demand Draft (DD) or bank account transfer.
Validity of RERA Real Estate Agent License
Upon receiving a RERA license, real estate agents have a five-year validity. Any violation of regulations empowers the regulator to revoke the license. For obtaining a Real Estate Agent RERA License in Tamil Nadu, access the Tamil Nadu Government RERA website or connect with an authorised representative.
Conclusion
RERA approval is mandatory for all real estate projects, including plots, in Tamil Nadu. RERA approval provides many benefits to homebuyers, such as transparency, accountability, timely delivery, consumer protection, and interest on delayed payment.
However, despite the mandatory RERA approval, there have been several complaints in Tamil Nadu. The Tamil Nadu RERA authority has been taking strict action against the defaulters to ensure that homebuyers are not inconvenienced in any way. e hope that this blog answered your question, Is RERA Approval Mandatory for Plots in Tamilnadu.
Vakilsearch is a legal services company that can assist with various legal matters, including those related to real estate and property transactions. In the case of whether RERA approval is mandatory for plots in Tamil Nadu, Vakilsearch can provide legal guidance and assistance to help you understand the relevant laws and regulations.
Frequently Asked Questions
Should I buy a property if it is not registered in RERA?
It's risky. RERA registration ensures legal compliance, transparency, and protects buyers' rights. Unregistered properties might lack these safeguards, exposing you to potential disputes or financial risks. Always prioritize RERA-registered properties for safety and legal security
What is the difference between DTCP and RERA?
DTCP focuses on town and country planning, ensuring proper development and infrastructure. RERA (Real Estate Regulatory Authority) safeguards buyers' interests, ensuring transparency, accountability, and timely project delivery. DTCP and RERA serve different purposes in regulating real estate.
What is meant by RERA approval?
RERA approval validates a project's legality and credibility. It ensures developers comply with regulations, providing accurate project details, timelines, and financial transparency. RERA approval signifies adherence to standards that protect buyers' rights and interests.
What is the fee for RERA registration in Tamil Nadu?
RERA registration fees in Tamil Nadu depend on the project's size and nature. They typically range from thousands to lakhs, varying with project scale and category. Check the official RERA website or consult professionals for accurate fee structures.
How can I get RERA approval in Tamil Nadu?
To obtain RERA approval in Tamil Nadu, developers must submit detailed project information, plans, timelines, financial statements, and legal documents to the RERA authority. Compliance with RERA regulations is essential for approval.
What are the registration charges for land with a house in Tamil Nadu?
Registration charges for land with a house in Tamil Nadu typically involve stamp duty and registration fees. These vary based on property value, location, and government regulations. Consult local authorities or professionals for precise charges.
What are the rules for land registration in Tamil Nadu?
Land registration in Tamil Nadu mandates verifying property ownership, submitting required documents, paying stamp duty, and registering at the Sub-Registrar Office. Compliance with rules regarding ownership, taxation, and legal aspects is crucial.
What are the formalities for land registration in Tamil Nadu?
Land registration in Tamil Nadu involves several steps, including document verification, payment of stamp duty and registration fees, completing forms, and registering at the Sub-Registrar Office. Compliance with legal procedures and documentation is essential.
Is Patta required for land registration in Tamil Nadu?
Yes, Patta (land revenue record) is crucial for land registration in Tamil Nadu. It serves as proof of ownership and land details, required for legal validation during registration. Lack of Patta can hinder or delay the registration process.
Can we register land without DTCP approval in Tamil Nadu?
DTCP approval is vital for land registration in Tamil Nadu, especially for plotted layouts. Without DTCP approval, registering land might be challenging or not permissible, as it verifies proper planning, layout approval, and compliance with regulations.
