TN law pushes for redeveloping old apartments, single owners’ associations

TN law pushes for redeveloping old apartments, single owners’ associations

A new legislation being planned to safeguard the interest of apartment owners and improve the administration of common areas allows only one recognised association per property.

CHENNAI: Flats across Tamil Nadu will not have multiple owners associations anymore and neither would there be delay in redeveloping dilapidated buildings as the State is planning to repeal Tamil Nadu Apartment Ownership Act, 1994, which came into effect in 1997.

A new legislation being planned to safeguard the interest of apartment owners and improve the administration of common areas allows only one recognised association per property. The memorandum of law calls for formation of federation of associations in case of multiple complexes or satellite townships.

One of the biggest issues with the 1994 law was the difficulty in registering associations under the Act. Since there is no authority constituted or yet to be notified as stipulated under the Act, the associations are being formed under the Tamil Nadu Co-operative Societies Act, 1961, or Tamil Nadu Societies Registration Act, 1975.

Interestingly, the new memorandum of legislation, too, doesn’t offer a proper solution. A top housing department official said though the regional deputy registrar of cooperative societies is still the competent authority, they are studying about what could be done to make it effective.

Another issue is the deed. Once a sale deed for the apartment and the proportionate undivided share of the land is registered in the owner’s name, he becomes the absolute owner of the property. Under Section 10 (2) of the 1994 Act, the deed has to be filed with the competent authority, but no authority has been notified yet.

The Tamil Nadu Ownership Act, 2022, introduced after 25 years allows for redevelopment of dilapidated buildings with consent from 66% owners as 100% unanimity is difficult. The new legislation is required as housing industry has changed considerably and large complexes and townships with multiple residential and commercial assets are a reality. A top housing department official said the Act will give legislative cover after the role of RERA ends.

The memorandum of legislation has enunciated model bylaws to be followed by apartment owners associations. A Shankar, Chief Operating Officer, Strategic Consulting and Valuation, JLL West Asia, welcomed the government’s decision to repeal the 1994 Act, and said the new memorandum of legislation gives more clarity for redeveloping societies.

Registration bump
One of the biggest issues with the 1994 law was the difficulty in registering associations. Since there is no authority constituted or yet to be notified as stipulated under the Act, the associations are being formed under Tamil Nadu Co-operative Societies Act, 1961, or Tamil Nadu Societies Registration Act, 1975.

Flat deal

  1. The Tamil Nadu Apartment Ownership Act, 1994, was implemented in 1997 but the authority is yet to be notified
  2. Due to lack of authority, the apartment associations are being formed under the Tamil Nadu Co-operative Societies Act, 1961 or Tamil Nadu Societies Registration Act, 1975
  3. Under Section 10 (2) of the Act, the Deed of Apartment has to be filed with the competent authority but due to lack of authority it could not be done
  4. The new legislation calls for one recognised association
  5. The redevelopment of dilapidated buildings can be carried out with two third consent of apartment owners
  6. Formation of Federation of Associations in case of large complex or satellite townships

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