Guide to RERA Tamilnadu

The Real Estate (Regulation and Development) Act, 2016 (RERA) plays a crucial role in safeguarding the interests of home buyers and promoting a more transparent and accountable real estate sector in Tamil Nadu. Here’s a summary of its key aspects:

Objectives:

• Protect home buyers: RERA safeguards home buyers from unfair practices and ensures timely project completion.
• Promote transparency and accountability: Developers are required to register their projects and disclose crucial information, fostering transparency in the sector.
• Establish a regulatory framework: RERA sets up a regulatory authority and dispute resolution mechanism for efficient problem resolution.

Key Provisions:

• Project Registration: All real estate projects exceeding a certain area threshold (varies for residential and commercial) must be registered with the Tamil Nadu Real Estate Regulatory Authority (TN-RERA).
• Information Disclosure: Developers must disclose essential project details, including:
  • Project plans and approvals
  • Amenities offered
  • Schedule of completion
  • Carpet area of apartments
  • Land ownership details
  • Encumbrances on the land, if any
• Sale of Apartments: Developers must enter into a written agreement with each buyer, outlining terms and conditions, including
  • Payment schedule
  • Delivery Schedule
  • Penalty for delays (applicable to developers)
  • Cancellation clauses
• Dispute Resolution: RERA establishes a dedicated dispute resolution mechanism through designated Tribunals. Home buyers can file complaints against developers for issues like non-compliance with project details or delayed possession.

Benefits for First-Time Home Buyers

The Real Estate Regulatory Authority (RERA) acts as a guardian angel for first-time homebuyers, ensuring a smooth and secure journey towards homeownership. Here’s how RERA empowers you:

• Transparency at Every Step: Forget information blackouts! RERA mandates that all project details – plans, approvals, developer information – are readily available on the builder’s website. This level of transparency allows you to make informed decisions based on facts, not just promises.
  
• Reduced Risk of Project Stalls: Imagine your dream home turning into a half-built nightmare due to a developer’s financial struggles. RERA addresses this concern. A portion of your payment goes into a secure escrow account, accessible only for project development. This ensures funds are used for construction, minimizing the risk of delays or project abandonment.
  
• Confidence Through Verification: Not all projects are created equal. RERA ensures that only approved projects receive registration search numbers. This allows you to easily verify a project’s legitimacy and track its progress online. Marketing of unapproved projects is prohibited, promoting a more trustworthy real estate industry.
  
• Progress Updates at Your Fingertips: Stay informed! RERA mandates that developers provide regular project progress reports. This transparency allows you to monitor construction, identify any deviations from the plan, and address concerns early on. Additionally, access to project plans, government approvals, and subcontractor details fosters a clear and open environment throughout the purchase process.
  
• Delayed Deliveries, Compensated: Facing project delays? RERA protects you from financial losses caused by them. Developers are obligated to pay interest on delayed deliveries, calculated at 2% above the State Bank of India’s Marginal Cost of Lending Rate (MCLR).

Benefits for Developers

• Improved market reputation: Compliance with RERA can enhance trust and attract potential buyers.
• Streamlined process: Clear regulations and established procedures can simplify project development.
• Dispute resolution framework: A defined mechanism provides a faster and fairer way to resolve disputes with buyers.

Important Resources:

• Tamil Nadu Real Estate Regulatory Authority (TN-RERA) website: https://rera.tn.gov.in/

The Rules and Regulations of RERA in Tamil Nadu 

The rules and regulations of RERA in Tamil Nadu are outlined in the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, notified by the state government in the exercise of the powers conferred by the RERA Act, 2016. Here’s a summary of some key regulations:

Project Registration:

1. Applicability: Applies to all ongoing and future real estate projects exceeding specified area thresholds:
   • 500 sq. m for residential projects within municipal corporation limits.
   • 1000 sq. m for residential projects outside municipal corporation limits.
   • Specified area for commercial projects (refer to TN-RERA website for details).
2. Documents required: Registration application form, project details, land ownership documents, financial statements, etc. (refer to TN-RERA website for a complete list).
3. Fees: Registration fee varies based on project size and type.

Information Disclosure:

• Developers must disclose comprehensive project information on the TN-RERA website and project brochures, including:
  • Project plans and approvals
  • Amenities offered
  • Schedule of completion
  • Carpet area of apartments
  • Land ownership details
  • Encumbrances on the land (if any)
  • Promoter’s past project details and ongoing litigation information

Sale Agreements:

• Standardized format prescribed by TN-RERA to ensure clarity and fairness.
• Must include:
  • Payment schedule linked to construction milestones
  • Possession schedule with penalties for delays (applicable to developers)
  • Cancellation clauses with specific conditions and compensation terms
  • Dispute resolution mechanism

Escrow Account Management:

• At least 70% of payments received from buyers for under-construction projects must be deposited in an escrow account managed jointly by the developer and a bank.
• Funds can only be withdrawn for project development as per the sanctioned plan and upon achieving agreed-upon milestones.

Dispute Resolution:

• Dedicated Tribunals were established by TN-RERA to address disputes between home buyers and developers.
• Online complaint filing system through the TN-RERA website for convenient access.
• A home buyer also needs to bear a fee to register a complaint with the Adjudicating Officer or the Appellate Tribunal. You have to pay Rs. 5,000 when raising a complaint with the Adjudicating Officer and pay at least Rs. 1,000 for other complaints.
• Tribunals have the authority to:
  • Hear and adjudicate disputes
  • Issue orders for rectification or compensation
  • Impose penalties on non-compliant parties

Penalties for Non-Compliance:

• TN-RERA can impose penalties on developers for various violations, including
  • Failing to register projects
  • Providing misleading or incomplete information
  • Violating sale agreement terms
  • Delaying project completion without justification

RERA Registration Process for Promoters (Developers) in Tamil Nadu

The Tamil Nadu Real Estate Regulatory Authority (TN-RERA) mandates registration for all developers undertaking projects exceeding the specified area thresholds:

• 500 sq. m for residential projects within municipal corporation limits.
• 1000 sq. m for residential projects outside municipal corporation limits.
• Specified area for commercial projects (refer to TN-RERA website for details).

Here’s an overview of the RERA registration process for promoters in Tamil Nadu:

1. Gather Required Documents:

• Form A: Application form for project registration (download from TN-RERA website)
• Declaration Form B: Signed by the promoter, confirming compliance with RERA Act and Rules.
• Project details: Plans, approvals, amenities offered, schedule of completion, etc.
• Land ownership documents: Sale deed, lease deed, encumbrance certificates (if any).
• Financial statements: Audited balance sheet and profit & loss statement for the past few years.
• PAN Card of the promoter company/firm.
• Certificate of Incorporation/Partnership Deed of the developer company/firm.
• Photo ID and address proof of authorized signatories.
• Additional documents as specified by TN-RERA based on project nature.

2. Online Registration:

• Visit the TN-RERA website: https://rera.tn.gov.in/
• Create an account (if not already registered)
• Navigate to the “Online Services” section and select “Project Registration”
• Fill out the online application form (Form A) and upload all required documents in the prescribed format.
• Pay the registration fee (varies depending on project size and type) online through the portal.

3. Scrutiny and Approval:

• TN-RERA will scrutinize the application and documents for completeness and compliance.
• Any queries or deficiencies will be communicated to the developer for clarification or rectification.
• Upon successful scrutiny, TN-RERA will issue a project registration certificate within the stipulated timeframe.

4. Post-Registration:

• Developers must update project information and progress on the TN-RERA website regularly.
• Adhere to all RERA regulations regarding information disclosure, sale agreements, and escrow account management.
• Address any complaints filed by home buyers through the designated dispute resolution mechanism.

RERA Registration Process for Agents in Tamil Nadu

Eligibility:

• Individuals or firms can apply for agent registration.
• Individuals must be at least 21 years old and possess a valid PAN card.
• Firms must be registered businesses with valid PAN and registration documents.

Documents Required:

• Completed application form (Form G) – downloadable from the TNRERA website (https://rera.tn.gov.in/)
• Passport-sized photograph of the applicant (individual) or authorized signatory (firm)
• Authenticated copy of PAN Card
• Identity and address proof (Aadhaar card, Voter ID, etc.)
• Educational qualification certificates (optional)
• Experience certificates in the real estate sector (optional)
• Details of registration (bye-laws/memorandum of association) for firms

Steps Involved:

1. Visit the TNRERA Website: Access the TNRERA website (https://rera.tn.gov.in/) and navigate to the “Registration” section.
   
2. Select Registration Type: Choose “Agent” as your registration type and specify whether it’s for Tamil Nadu or Andaman and Nicobar Islands (if applicable).
   
3. Apply Online: Click on “Registration > Agents > Apply Online” to initiate the online application process.
   
4. New Registration: Since it’s your first time, select “New Registration” and fill out the application form accurately with all required details.
   
5. Upload Documents: Upload scanned copies of the required documents mentioned above.
   
6. Registration Fee Payment: Pay the registration fee online. The fee is:
   
   • Rs. 25,000 for individual applicants.
   • Rs. 50,000 for firms.
7. Form Submission: Review your application thoroughly, then submit it electronically.
   
8. Verification Process: TNRERA will verify your application and documents. This may involve contacting you for further information or clarifications.
   
9. Registration Approval: Upon successful verification, TNRERA will grant your agent registration and issue a unique registration number.

Checking the Status of RERA-Registered Projects in Tamil Nadu

The Tamil Nadu Real Estate Regulatory Authority (TN-RERA) website provides a user-friendly platform to check the registration status of real estate projects in the state. Click here to check TN-RERA-approved projects.

Eligibility Criteria for Developers Seeking RERA Registration in Tamil Nadu

1. Project Location:

• The project must be situated within the state of Tamil Nadu.

2. Project Size:

• The project size must exceed the specified area thresholds:
  • 500 sq. m for residential projects within municipal corporation limits.
  • 1000 sq. m for residential projects outside municipal corporation limits.
  • Specified area for commercial projects (refer to the TN-RERA website for details).

3. Legal Entity:

• The developer must be a legally registered entity in India, such as:
  • Registered Company
  • Partnership firm
  • Limited Liability Partnership (LLP)

4. Financial Stability:

• Developers need to demonstrate financial stability. This is typically evaluated through the submission of the latest audited financial statements (balance sheet and profit & loss statement) for the previous few years, as specified by TN-RERA. The statements should demonstrate the developer’s:
  • Financial viability to undertake the project.
  • Ability to meet financial obligations to home buyers.

5. Compliance with Past Projects:

• Developers should not have any outstanding complaints against them related to previous real estate projects.
• They should not have any past violations of RERA regulations in Tamil Nadu or any other state (if applicable).

6. Additional Considerations:

• The developer company/firm should not be blacklisted or debarred by any government authority or regulatory body.
• They should possess the necessary licenses and approvals required for the specific construction project, as mandated by relevant authorities.

The Cost of RERA Registration in Tamil Nadu 

The registration fee is determined by the project type and the size of the area involved. Here’s a breakdown:

• Layouts, Sub-divisions & Site Approvals: Rs. 5 per square meter of plottable area, excluding EWS plots (Roads and OSR excluded).
• Residential Buildings:
  • Dwelling unit size less than 60 sq m: Rs. 10 per square meter of FSI area.
  • Other residential projects: Rs. 20 per square meter of FSI area.
• Commercial Buildings: Rs. 50 per square meter of FSI area.
• Any Other Projects: Rs. 25 per square meter of FSI area.

Important Notes:

• FSI (Floor Space Index) refers to the permissible built-up area on a plot.
• EWS (Economically Weaker Section) plots are excluded from the calculation of plottable area.
• Always refer to the official TNRERA website (https://rera.tn.gov.in/) for the latest and most detailed fee structure and regulations.

Additional Fees:

While project registration is the primary fee, there are other costs to consider:

• Project Extension: A 10% fee of the original registration fee for timely extension applications, with an additional 10% late fee for delays exceeding three months before expiry. Subsequent extensions incur higher fees.
• Changes after Registration: Rs. 2,000 per transaction for any modifications after the registration certificate is issued.
• Application Withdrawal: A 10% deduction from the registration fee if the application is withdrawn by the applicant. No refunds are available after registration.
• Agent Registration:
  • Individual Applicants: Rs. 25,000
  • Non-Individual Applicants: Rs. 50,000

RERA Forms for Buyers, Agents and Developers

For Buyers:

AGREEMENT FOR SALE ANNEXURE – A	Click Here
APPEAL TO APPELLATE TRIBUNAL FORM – L	Click Here
COMPLAINT TO REGULATORY AUTHORITY FORM – M	Click Here
APPLICATION TO ADJUDICATING OFFICER FORM – N	Click Here

For Agents:

APPLICATION FOR REGISTRATION OF REAL ESTATE AGENT FORM – G	Click Here
REGISTRATION CERTIFICATE OF REAL ESTATE AGENT FORM- H	Click Here
INTIMATION OF REJECTION OF APPLICATION FOR REGISTRATION OF REAL ESTATE AGENT / REJECTION OF APPLICATION FOR RENEWAL OF REGISTRATION OF REAL ESTATE AGENT / REVOCATION OF REGISTRATION OF REAL ESTATE AGENT FORM – I	Click Here
APPLICATION FOR RENEWAL OF REGISTRATION OF REAL ESTATE AGENT FORM – J	Click Here
RENEWAL OF REGISTRATION OF REAL ESTATE AGENT FORM – K	Click Here
APPEAL TO APPELLATE TRIBUNAL FORM – L	Click Here
COMPLAINT TO REGULATORY AUTHORITY FORM – M	Click Here
APPLICATION TO ADJUDICATING OFFICER FORM – N	Click Here

For Developers:

APPLICATION FOR REGISTRATION OF PROJECT FORM – A	Click Here
DECLARATION  FORM – B	Click Here
REGISTRATION CERTIFICATE OF PROJECT – C	Click Here
INTIMATION OF REJECTION FORM – D	Click Here
APPLICATION FOR EXTENSION OF REGISTRATION FORM – E	Click Here
CERTIFICATE FOR EXTENSION OF REGISTRATION FORM – F	Click Here

Contact Details of TN-RERA

Address:

Tamil Nadu Real Estate Regulatory Authority (TNRERA),

No.1A, 1st Floor, Gandhi Irwin Bridge Road, Egmore,

Chennai – 600008.

Phone Nos:
General Information / RTI – (044) 2888 7936, (044) 2888 7904;

Project Registration – (044) 2888 7911

Assistant Directors – (044) 2888 7907, (044) 2888 7908

Agent Registration – (044) 2888 7911

Complaint Filing (Form-M) – (044) 2888 7912, (044) 2888 7914

Complaint Filing (Single Member Bench) – (044) 2888 7935

Complaint Filing (Form-N) – (044) 2888 7919

Email: contact.tnrera@tn.gov.in

Phone: (044) 2888 7906;

Website: https://rera.tn.gov.in

Documents required for RERA registration in Tamil Nadu

1. Developer Information:

• PAN Card of the promoter company/firm
• Certificate of Incorporation/Partnership Deed of the developer company/firm (or equivalent registration document if applicable)
• Memorandum of Association (MOA)/Articles of Association (AOA) (for companies)
• Photo ID and address proof of authorized signatories of the developer company/firm

2. Project Details:

• Project name and location
• Project type (residential/commercial)
• Project plans and approvals (sanctioned building plans, layout plans, environmental clearances, etc.)
• Schedule of completion with specific milestones

3. Land Ownership Documents:

• Sale deed/Registered lease deed of the project land
• Land registry details (encumbrance certificate, patta chitta, etc.)
• No Objection Certificates (NOCs) from relevant authorities (if applicable)

4. Financial Stability Documents:

• Latest audited financial statements (balance sheet and profit & loss statement) for the previous few years (as specified by TN-RERA)
• Project financial plan with estimated costs and revenue projections

5. Additional Documents:

• Undertaking by the developer to comply with RERA Act and Rules
• Technical reports and feasibility studies (as required for specific project types)
• Marketing and sales brochures (if available)
• Power of Attorney (if applicable)

Important Notes:

• All documents should be duly signed, stamped, and attested as per legal requirements.
• Documents need to be submitted online through the TN-RERA portal in prescribed formats and sizes.
• The specific requirements and number of supporting documents might vary depending on the project’s nature, complexity, and specific regulations applicable at the time of registration.

Conclusion

The Real Estate (Regulation and Development) Act, 2016 (RERA) in Tamil Nadu stands as a beacon of transparency and protection in the state’s real estate sector. With its robust framework, RERA ensures fairness for both home buyers and developers. By promoting transparency, accountability, and timely project completion, RERA fosters a more secure and trustworthy environment. 

Home buyers benefit from increased transparency, protection from malpractices, and a dedicated dispute resolution mechanism, while developers gain improved market reputation and streamlined processes. Through compliance with RERA regulations and adherence to the registration process, stakeholders contribute to a thriving real estate market in Tamil Nadu.

Frequently Asked Questions about RERA in Tamil Nadu

Q1. What is RERA?

Ans 1. RERA stands for the Real Estate (Regulation and Development) Act, 2016, a central law implemented in Tamil Nadu to bring transparency and accountability to the real estate sector.

Q2. What are the benefits of RERA for home buyers?

Ans 2. RERA benefits home buyers by:

• Ensuring transparency: Access to crucial project information through registration and disclosure requirements.
• Protecting their rights: Safeguards against unfair practices like project delays and non-delivery through standardized agreements and dispute resolution mechanisms.

Q3. What are the benefits of RERA for developers?

Ans 3. RERA benefits developers by:

• Enhancing market reputation: Upholding transparency can attract potential buyers.
• Streamlining processes: Clear regulations and procedures can simplify project development.
• Providing a dispute resolution framework: Offers a faster and more efficient way to address buyer grievances.

Q4. Is my project mandatory to register under RERA?

Ans 4. Yes, if your project is located in Tamil Nadu and exceeds the specific area threshold:

• 500 sq. m for residential projects within municipal corporation limits.
• 1000 sq. m for residential projects outside municipal corporation limits.
• Specified area for commercial projects (refer to TS-RERA website for details).

Q5. How do I register my project under RERA in Tamil Nadu?

Ans 5. Here’s a general overview of the registration process:

1. Gather required documents (refer to the answer below).
2. Visit the TN-RERA website: https://rera.tn.gov.in/
3. Register and apply online.
4. Pay the registration fee.
5. Await TN-RERA scrutiny and approval.

Q6. What documents are required for RERA registration in Tamil Nadu?

Ans 6. The required documents include:

• Developer information (PAN Card, registration documents, etc.)
• Project details (plans, approvals, schedule)
• Land ownership documents (sale deed, land registry details)
• Financial documents (audited statements, project financial plan)
• Additional documents (undertaking, technical reports, etc.)

Note: This is not an exhaustive list, and specific requirements may vary. Consult the TN-RERA website or a legal professional for the latest information.

Q7. What are the fees associated with RERA registration in Tamil Nadu?

Ans 7. The registration fee varies depending on the project size and type. Refer to the TN-RERA website for the latest fee structure.

Q8. Where can I find more information about RERA in Tamil Nadu?

Ans 8. You can find detailed information and the latest updates on the official TN-RERA website: https://rera.tn.gov.in/.

Q9. Should I consult a lawyer regarding RERA?

Ans 9. Consulting a lawyer specializing in property law is highly recommended for both home buyers and developers to:

• Navigate the legal aspects of RERA.
• Ensure compliance with regulations.
• Protect your rights and interests.