Tamil Nadu Real Estate (Regulation and Development) Rules, 2017

 

Tamil Nadu Real Estate (Regulation and Development) Rules, 2017

 

1)     Comes into Force from 22^nd June 2017

2)     Secretary to Housing is the Designated Authority until appointment of RERA

3)     All On going Project shall be registered before the Authority with in 3 months from the Act (i.e., 1-5-2017 plus 3 months i.e., 31-7-2017)

4)     The construction cost shall be the cost incurred by the promoter, towards the on-site expenditure for the physical development of the project including the cost incurred by way of fees/charges paid towards obtaining necessary statutory clearances including cost of Transfer of Development Rights, premium Floor Space Index charges, Finance Cost for the construction of the project and professional consulting charges.

5)     Sec 2(n) (i) of the Act is violated by inserting Rule 9(1) by giving power to convey UDS to the Allottees against conveying to Association

6)     Sale Agreement in Form A having separate heading as AGREEMENT FOR SALE and CONSTRUCTION AGREEMENT (against Single in all other States)

7)     Real estate Agent Registration Fees Rs.25,000/ for Individual and Rs.50,000/ for others

8)     In the Application, should have details of Consultants: Contractors, architect and structural engineers, site engineers, construction engineers, Quality Auditors, Geo-Technical Engineers, Town Planners, project management consultant.

9)     Rate of interest payable by the promoter and the allottee  State Bank of India highest Marginal Cost of Lending Rate plus 2%

10)  Timelines for Refund  incase of Termination – 90 days from the due date

 

11)  “Ongoing project” – Diluted and deviated from Act - Excludes

(i)          Common Areas gifted to the local body

(ii)           In Chennai Metropolitan Area for which application for completion certificate has been filed with Chennai Metropolitan Development Authority

(iii)           Outside Chennai Metropolitan Area, as no provision and procedure has yet been prescribed for issue of completion certificate, if the construction is structurally completed

 

12)  Fee shall not be levied for the Tamil Nadu Slum Clearance Board developed projects, Affordable Housing projects of the Tamil Nadu Housing Board and Housing projects executed by the Tamil Nadu Police Housing Corporation.

 

13)   Clarification on ongoing projects -

Explanation  I.-  Any  agreement  already  entered  between  the  promoter  and  the allottee before commencement of these rules shall not be affected.

Explanation II .- If the project has been conceived to be developed in phases, where the plans for the initial phase are approved by the planning authority prior 1-5-2017 then for such projects the requirement of obtaining 2/3 consent from existing allottee is exempted for addition/revision/modification of plans for subsequent phase/s of development, provided the scheme of developing the project in phased manner has been agreed upon by the allottee and promoter in the agreements executed between them;

Explanation III.- If the approval from the planning authority is obtained for larger extent of land, but where the development is conceived to be in phases, the promoter shall be permitted to register each phase as an independent project with the Authority. In such case, the requirement of obtaining 2/3 consent from existing allottee is exempted for addition/revision/modification of plans for subsequent phases of development, provided the development in phases has been agreed upon by the allottee and promoter in the agreements executed between them, when there is no reduction in the common area and there is no change in the total built up area of the registered phase/project.

Explanation IV.- It is not mandatory to substitute the prescribed form of agreement for sale, construction, the same shall be legally valid and enforceable and shall not be construed to limit the rights of the allottee under the Act and the rules and regulations made thereunder.

 

14)  Clarification on Withdrawal and Certifications 

 

a.      the engineer shall certify that the items shown in the cost of construction is matching to the physical condition at the site of the real estate project;

b.     the architect shall certify that the physical condition at the site is built as per the sanctioned plan; and chartered accountant shall certify the cost incurred on construction cost and land cost;

c.      the chartered accountant shall also certify the proportion of the cost incurred on construction and land cost to the total estimated cost of the project