In 2026, real estate regulations were strengthened to correct long-standing problems faced by buyers such as misuse of buyer money, delayed projects, false advertisements, lack of information, and weak accountability of builders. The new rules place strict financial controls, mandatory disclosures, and enforceable buyer rights, mainly under the Real Estate Regulatory Authority (RERA) and state authorities like Tamil Nadu Real Estate Regulatory Authority (TNRERA).
These rules apply to all RERA-registered residential and commercial projects.
1. Mandatory Three-Bank-Account System (Most Important 2026 Rule)
From 1 January 2026, every real estate project must operate three separate bank accounts in the same scheduled bank. This system ensures complete tracking and control of buyer funds.
1.1 RERA Collection Account (100% Buyer Money)
What it is:
This is the primary account where all money paid by buyers must be deposited.
Key rules:
- Every rupee paid by a buyer (booking amount, instalments, advances) must go only into this account.
- Builders cannot withdraw money directly from this account.
- The account is used only to record and track buyer inflows.
Purpose:
To prevent builders from collecting buyer money in private or undisclosed accounts.
Buyer protection:
Buyers’ payments are fully traceable, eliminating hidden collections and cash misuse.
1.2 RERA Separate Account (70% – Land & Construction Only)
What it is:
A protected account where 70% of buyer money is transferred automatically from the Collection Account.
Permitted usage:
- Land purchase cost
- Construction cost
- On-site development expenses related strictly to that project
Withdrawal conditions:
Money can be withdrawn only after certification by:
- Project Architect
- Project Engineer
- Chartered Accountant
These professionals must certify that:
- Construction has progressed as claimed
- Withdrawal amount matches actual work completed
Purpose:
To ensure construction money is used only for the same project.
Buyer protection:
Stops diversion of funds to:
- Other projects
- Personal expenses
- Unrelated businesses
Also Read: What Happens if a Real Estate Project in Chennai Is not RERA registered
1.3 RERA Transaction Account (30% – Controlled Expenses)
What it is:
An account for non-construction but legitimate project expenses.
Permitted usage:
- Marketing and advertising
- Office and administrative expenses
- Loan repayments
- Statutory taxes
- Buyer refunds and compensation
Purpose:
Allows promoters to manage operations without touching construction funds.
Buyer protection:
Ensures construction does not stop due to misuse of money elsewhere.
2. Strict Rules on Real Estate Advertising (Transparency Enforcement in 2026)
All real estate advertisements must be truthful, verifiable, and registered.
Mandatory disclosures in every advertisement:
- RERA registration number
- QR code linked to the official RERA project page
- Promoter’s legal name and registered address
- Accurate project details as per approvals
Practices now strictly prohibited:
- Advertising without RERA registration
- “Pre-launch” or “Coming Soon” promotions
- False claims about amenities or approvals
- Misleading visuals or exaggerated promises
Buyer protection:
Buyers can verify project legality instantly before paying any amount.
3. Mandatory Public Disclosure on RERA Portal
Builders must upload and regularly update project information on the official RERA portal, including:
- Approved building plans
- Layout approvals
- Construction stage updates
- Financial disclosures linked to withdrawals
- Completion timelines
- Status of permissions and clearances
Buyer protection:
Buyers are no longer dependent on sales agents — government-verified data is available online.
4. Stronger Financial Discipline and Monitoring
- Banks monitor automatic fund transfers
- Withdrawal certificates are digitally recorded
- Authorities can audit fund movement at any time
- Violations are easily traceable
Buyer protection:
Financial mismanagement becomes difficult and legally risky for builders.
5. Heavier Penalties for Violations (2026 Enforcement Focus)
If a promoter violates transparency or buyer-protection rules:
- Heavy monetary fines
- Freezing of bank accounts
- Suspension or cancellation of project registration
- Orders for refunds with interest
- Legal proceedings for repeated violations
Buyer protection:
Builders face real consequences, not just warnings.
Also Read: DTCP Approval Rules and Regulations for Layout
6. Faster and Stronger Buyer Grievance Redressal
Buyers can file complaints for:
- Delay in possession
- Misuse of funds
- False advertising
- Change in plans without consent
- Failure to pay compensation
Complaints are handled through online systems with fixed timelines.
Buyer protection:
Buyers get quicker justice without lengthy court cases.
7. Clear Buyer Rights Strengthened in 2026
Buyers are legally entitled to:
- Complete project information before purchase
- Refund with interest in case of delays
- Compensation for false commitments
- Transparency in fund usage
- Legal remedies through RERA authorities
FAQs
Q1. Do these rules apply to all builders?
Yes. All RERA-registered projects must comply.
Q2. Can builders still misuse buyer money?
No. The three-account system makes misuse traceable and punishable.
Q3. Does this guarantee on-time delivery?
It does not guarantee delivery, but it greatly reduces delay risks caused by fund diversion.
Q4. Are buyers allowed to verify project details?
Yes. All project data is publicly available on the RERA portal.
Q5. Are pre-launch sales legal in 2026?
No. Any sale or promotion without RERA registration is illegal.
Q6. What happens if a builder violates these rules?
Penalties, refunds with interest, registration cancellation, and legal action.
Q7. Is buyer money fully protected?
Risk is significantly reduced due to controlled accounts and audits.
Q8. Who enforces these rules?
State RERA authorities under the Real Estate (Regulation and Development) Act.
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