Introduction
The Tamil Nadu Housing Board (TNHB) has played a crucial role in transforming the housing landscape in Chennai and other major cities of Tamil Nadu. Established with the aim of improving living conditions for people residing in slum areas, the TNHB provides a range of housing solutions, from simple tenements to multi-story apartments. For prospective buyers interested in acquiring TNHB properties, it is essential to understand the intricacies of these transactions. This article outlines 24 key insights into the process of purchasing TNHB tenements, helping buyers navigate the complexities and make informed decisions.
- Purpose of the Housing Board: The primary mission of the Tamil Nadu Housing
Board (TNHB) is to provide better housing and improved living standards to people
residing in slums, thereby enhancing their quality of life and upgrading slum areas. - Impact of Housing Board Projects: The TNHB’s efforts have been instrumental
in providing a more civilized living environment for the middle-class population in
Chennai. - Types of Housing: The Housing Board offers both tenements and multi-story
buildings. These properties are available as either single-story units or as apartments
in multi-story buildings. - Examples of Housing Projects: I have seen tenements allocated in areas such as
K.K. Nagar, M.G.R. Nagar, Pallikaranai Balaji Nagar, Mandaveli Karaikudi, and
Chidambaramalai in Chennai. - Size and Structure: Throughout Chennai, TNHB projects include multi-story
buildings with three to four floors, generally comprising units of less than 200 square
feet. - Notable Developments: In areas like O.M.R. and Duraipakkam, Kanakpuram and
Semmanjeri Tsunami Nagar, large-scale multi-story tenements have been developed. - Buying TNHB Properties: When purchasing TNHB properties from original
allottees, it is crucial to verify several aspects, including the original allotment
documents and whether the property is free from encumbrances. - Procedure for Allotment: When properties are allocated, they are initially
provided as leasehold properties, and the allottee must pay the lease amount in
installments. A provisional allotment order is issued by TNHB. - Lease and Payment Terms: The lease amounts are typically very low, often under
₹100 per month, with some allocations before the 1990s requiring payments between
₹12 and ₹15 per month. - Financial Structure: TNHB housing schemes are often funded through loans
from institutions like the World Bank, which helps in keeping the installment amounts
low. - Verification of Title: When buying a TNHB property, ensure that the seller is the
original allottee. If so, verify that all payments due to the Housing Board have been
fully settled and that a sale deed has been issued. - Settling Outstanding Payments: If the original allottee has outstanding dues, the
buyer must first clear these payments and obtain a sale deed in the original allottee’s
name before purchasing the property. - Challenges with Old Allottees: In some cases, the original allottee might not
have paid the lease amounts or may have transferred the property without proper
documentation, leading to issues with registration. - Legal and Administrative Issues: If the original allottee has sold the property
without proper documentation or has unpaid dues, the new buyer may face legal
challenges. It is essential to resolve these issues before proceeding with the purchase. - Historical Issues: Some properties allocated before the 1990s may have
complicated ownership issues. Often, these properties are sold informally without
proper registration, leading to potential disputes. - Verification and Documentation: Ensure that the sale deed for the property is
properly registered. Buyers should personally verify the registration and ensure all
documents are in order. - Finding the Allottee: If the original allottee cannot be located, buyers can
approach the TNHB office and report their status as an innocent buyer. They may
need to settle all dues and obtain a valid sale deed before completing the purchase. - Registration Process: Once all dues are settled, buyers should ensure that the sale
deed is properly registered with the appropriate registration office. - Potential Complications: Properties that have changed hands informally or
where the original allottee cannot be found may face additional complications,
particularly with older properties from before 1990. - Recent Changes: Post-1990, TNHB has implemented stricter controls on property
transactions to prevent unauthorized sales and ensure compliance with housing
policies. - Obtaining Sale Deeds: Buyers must ensure that all payments are made, and the
sale deed is registered correctly. In some cases, the property may have undergone
unofficial transfers that need to be addressed. - Final Verification: Before finalizing a purchase, buyers should confirm that the
sale deed is correctly recorded and that there are no outstanding issues with the
property. - Current Developments: The TNHB is planning to redevelop old tenements in
metropolitan areas, potentially relocating current occupants for up to four years while
new housing is constructed. - Advice for Prospective Buyers: During this redevelopment phase, it is advisable
to avoid purchasing properties from current occupants due to potential relocation and
redevelopment issues.
Conclusion
Purchasing properties from the Tamil Nadu Housing Board requires careful consideration and thorough due diligence. Understanding the nuances of lease agreements, verifying the status of payments, and ensuring proper documentation are crucial steps in securing a legitimate and trouble-free transaction. By following the insights outlined in this article, prospective buyers can better navigate the complexities of acquiring TNHB tenements and make informed decisions, ensuring a smooth and successful property purchase.