Express press service
CHENNAI: Flats across Tamil Nadu will no longer have multiple homeowner associations nor will there be any delay in the redevelopment of dilapidated buildings as the state plans to repeal the 1994 ownership of Tamil Nadu flats, which came into effect in 1997.
New legislation planned to safeguard the interests of apartment owners and improve the administration of common areas allows only one recognized association per property. The memorandum of law calls for the formation of a federation of associations in the event of multiple complexes or satellite cantons.
One of the main problems with the 1994 law was the difficulty of registering associations under the law. Since there is no authority incorporated or to be notified as required by law, associations are incorporated under the Tamil Nadu Cooperative Societies Act 1961 or the Registration of Societies Act 1975. Tamil Nadu companies.
Interestingly, the new legislative protocol does not offer a suitable solution either. A senior Housing Department official said that although the Regional Deputy Registrar of Co-operative Societies is still the competent authority, they are considering what could be done to make it effective.
Another issue is the deed. Once the deed of sale of the apartment and the undivided share of the land has been registered in the name of the owner, the latter becomes the absolute owner of the property. Under section 10(2) of the 1994 Act, the document must be lodged with the competent authority, but no authority has yet been notified.
The Tamil Nadu Property Act 2022, introduced after 25 years, allows the redevelopment of dilapidated buildings with the consent of 66% of the owners, as 100% unanimity is difficult. The new legislation is needed as the housing industry has changed significantly and large complexes and townships with multiple residential and commercial assets are a reality. A senior housing department official said the law would give legislative cover after the RERA’s role ended.
The Memorandum of Legislation set out model statutes to be followed by apartment owners’ associations. A Shankar, COO, Strategic Advisory and Valuation, JLL West Asia, welcomed the government’s decision to repeal the 1994 law and said the new legislative protocol gives more clarity for the redevelopment of companies.
One of the main problems with the 1994 law was the difficulty of registering associations. Since there is no authority incorporated or to be notified as stipulated by law, associations are formed under the Tamil Nadu Cooperative Societies Act 1961 or the Registration of Societies Act 1975. Tamil Nadu companies.
- The Tamil Nadu Apartment Ownership Act 1994 was implemented in 1997 but the authority is yet to be notified
- Due to lack of authority, apartment associations are formed under Tamil Nadu Cooperative Societies Act 1961 or Tamil Nadu Companies Registration Act 1975.
- Under Section 10(2) of the Act, the apartment deed must be filed with the competent authority, but due to lack of authority this could not be done
- The new legislation provides for a recognized association
- Redevelopment of dilapidated buildings can be carried out with the consent of two-thirds of apartment owners
- Formation of the Federation of Associations in case of large complexes or satellite cantons