Tamil Nadu Real Estate (Regulation and Development) Rules 2017 – A Complete Guide

The Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, commonly known as Tamil Nadu RERA Rules, were introduced to bring order, transparency, and accountability to the real estate market in Tamil Nadu. These rules were framed under the Real Estate (Regulation and Development) Act, 2016 (Central Act 16 of 2016), which is applicable across India.
Before RERA, many homebuyers suffered due to project delays, false promises, unauthorized layouts, and unfair agreements. The Tamil Nadu government, therefore, notified its own set of rules to regulate builders, developers, and agents under this central law.
 

1. Objective of Tamil Nadu RERA Rules, 2017

The primary goals of Tamil Nadu RERA Rules are:

•  To protect the rights of homebuyers and ensure fair transactions.
•  To regulate and control real estate promoters, developers, and agents.
•  To ensure that projects are delivered on time as promised.
•  To provide a single transparent online platform for all project information.
•  To ensure financial discipline by preventing diversion of buyer funds.
•  To create a fast and efficient dispute resolution system.

Before 2017, real estate was largely unorganized, and buyers had little recourse when cheated by builders. The RERA rules have changed that, creating a legal structure and accountability system that benefits everyone involved.

2. Applicability of the Rules

The Tamil Nadu RERA Rules, 2017 apply to:

• All new residential and commercial real estate projects that exceed 500 square meters of land area or 8 apartments, whichever is lower.
• All ongoing projects that had not received completion certificates as of May 1, 2017.
• All real estate agents operating within the state of Tamil Nadu.

Exemptions:
The following do not require RERA registration:

• Small projects (below 500 sq. m or less than 8 units).
• Projects where the builder already has a completion certificate before May 2017.
• Renovation or repair work that doesn’t involve new construction or marketing to buyers.

3. Registration Process under Tamil Nadu RERA

Under Rule 3 of the Tamil Nadu RERA Rules, every promoter (developer or builder) must register their project before selling or advertising it.

 Documents Required for Project Registration:

The promoter must submit:

• Promoter Details: Name, address, PAN, Aadhaar, and company profile.
• Project Details:

1. Location and land size.
2. Type of project (apartments, villas, plots, commercial, etc.).
3. Number of units.

• Title Deed & Ownership Proof: Showing legal right over the land.
• Encumbrance Certificate: To prove there are no legal disputes or mortgages.
• Approved Plan: Building plan approved by CMDA, DTCP, or local body.
• Sanctioned Layout and Building Permit.
• Project Schedule: Expected date of start and completion.
• Past Projects History: Details of previous projects completed or pending.
• Declaration: That 70% of buyer money will be deposited in a separate bank account.

Once approved, a unique RERA Registration Number is issued — this must be displayed in all advertisements, websites, and brochures.

Also Read: RERA Registration Process

4. Real Estate Agent Registration

Under Rule 10, all real estate agents must register with the Tamil Nadu Real Estate Regulatory Authority (TNRERA).

Required Documents:

• Applicant’s details (individual/company).
• Address proof and business registration certificate.
• PAN card, photograph, and contact details.
• Details of past real estate transactions.

After verification, the agent is issued a registration certificate valid for 5 years. It must be renewed before expiry.
 Unregistered agents cannot facilitate property sales in RERA-registered projects.

5. Financial Discipline – The 70% Rule

To prevent the misuse of buyers’ money, RERA introduced the Escrow Account Rule:

• Builders must deposit 70% of the total money collected from buyers into a dedicated bank account.
• This account can only be used to cover construction and land costs for that particular project.
• Funds can be withdrawn only in proportion to project progress, and each withdrawal must be certified by:

1. A Chartered Accountant,
2. A Civil Engineer, and
3. An Architect.

This ensures that builders cannot divert money from one project to another, guaranteeing financial discipline and timely completion.

6. Timely Completion and Extension

Promoters must declare a specific project completion date at the time of registration.

• If the project cannot be completed within that time, the builder must apply for an extension from TNRERA before expiry.
• Extensions are allowed only in genuine cases such as natural calamities, government delays, or court orders.
• If the delay is without valid reason, the buyer is entitled to compensation or refund with interest.

 7. Transparency and Buyer Information

Transparency is one of the strongest aspects of RERA. Under Tamil Nadu RERA Rules:

• The promoter must upload all details on the official website — https://www.tnrera.in.
• Buyers can verify:

1. Project location and layout.
2. Status of construction.
3. Land ownership documents.
4. Approvals from CMDA/DTCP/local body.
5. List of agents and contractors.
6. Quarterly progress reports.

This public disclosure ensures that buyers can check everything before investing, reducing fraud and misrepresentation.

8. Penalties and Legal Consequences

The Tamil Nadu RERA Rules, 2017 specify strict penalties for non-compliance:
 

These strong penalties ensure that only ethical and law-abiding developers survive in the market.

9. Complaint and Dispute Resolution

Under Rule 33, any buyer, builder, or agent can file a complaint for violations under the RERA Act or Tamil Nadu Rules.

How to File a Complaint:

Visit https://www.tnrera.in

• Click “File Complaint”
• Fill the online form and upload documents (agreement, receipts, etc.)
• Pay the prescribed fee (?1,000 for Authority, ?5,000 for Tribunal)
• TNRERA will hear and decide within 60 days

If the party is not satisfied with the order, they can appeal to the Real Estate Appellate Tribunal (REAT) within 60 days.

10. Impact of Tamil Nadu RERA Rules on the Market

Since its introduction in 2017, RERA has transformed Tamil Nadu’s real estate ecosystem:

• Buyers are more confident in investing.
• Developers have improved discipline in fund management and project timelines.
• Illegal and unauthorized projects have reduced.
• Online transparency through the TNRERA website has built public trust.
• Real estate agents have become more professional and registered.

Especially in cities like Chennai, Coimbatore, Madurai, and Tiruchirappalli, buyers now prefer RERA-approved projects for safety and trust.

11. Key Differences Between Central RERA Act and Tamil Nadu Rules

12. How to Check RERA-Registered Projects in Tamil Nadu

Here’s how homebuyers can verify projects:

• Visit  https://www.tnrera.in
•  
• Click on “Projects Registered”
•  
• Search by:

1. Project name
2. Promoter name
3. RERA registration number

• You’ll see:

1. Project address and developer name
2. Type of project
3. Project status (ongoing/completed)
4. Legal and technical details

This simple process helps you avoid unapproved or risky investments.

13. Conclusion

The Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 mark a turning point in Tamil Nadu’s property market. By making real estate transparent, accountable, and fair, these rules have created a buyer-friendly environment and promoted ethical growth in the construction industry.

For buyers, the rule means security and trust.
 For developers, it means credibility and legal compliance.
 For agents, it means professional recognition and regulation.

If you are planning to buy or invest in a home in Tamil Nadu — always check for the RERA registration number. It’s your legal assurance of safety, transparency, and reliability.

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