What is a Joint Venture Project?

In real estate, a Joint Venture (JV) is when:

• A landowner gives land.

• A builder/developer constructs apartments.

• Both parties share the profit or apartments.

This is common in Tamil Nadu, especially in growing areas like OMR, Tambaram, Medavakkam, and Velachery.

The implementation of RERA (Real Estate Regulation and Development Act) has significantly impacted joint venture (JV) real estate projects in Tamil Nadu by bringing in greater transparency, accountability, and legal clarity.In a typical JV project, a landowner partners with a builder or developer to construct residential or commercial units, sharing either profits or completed units. Under RERA, even if the landowner is not directly involved in construction, they are considered a "co-promoter" if they benefit from the sale of units, making them legally accountable. All JV projects above 500 sq.m or more than 8 units must be mandatorily registered with TNRERA (Tamil Nadu RERA).

How RERA Affects JV Projects in Tamil Nadu

1.  Mandatory Project Registration

Under TNRERA (Tamil Nadu RERA):

• All real estate projects over 500 sq.m or 8 units must be registered.

• JV projects must also be registered, even if the landowner is not the builder.

Effect: No project can be sold without approval, ensuring buyer safety. 

2. Landowner Becomes Co-Promoter

In JV projects:

• The landowner is treated as a co-promoter if they share profits or sell units.

• Both builder and landowner are legally responsible.

Effect: Buyers can take action against either party if things go wrong.

3. Time-bound Completion

RERA requires the developer to:

• Declare a fixed project completion date.

• Stick to the timeline or face penalties or compensation.

Effect: Fewer project delays, more trust for buyers.

4.  Escrow Account for Buyer Payments

• 70% of the money collected from buyers goes into a separate bank account.

• Money is withdrawn only as construction progresses.

Effect: Protects buyer funds and avoids misuse.

5.  Full Transparency

• All approvals, building plans, layout, and agreements must be uploaded on the TNRERA website.

• Buyers can check the legal status before booking.

Effect: More clarity, less fraud.

6.  No Misleading Ads

• No one can advertise or sell the project without RERA registration number.

• This includes both builder and landowner.

Effect: Stops false promises in marketing.

RERA has made Joint Venture Projects in Tamil Nadu more:

• Transparent 

• Accountable 

• Buyer-friendly 

• Legally safe 

It protects the buyer and ensures that both landowner and builder follow the rules.

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