RERA lawyers in Chennai
TNRERA registration, compliance, agreements for sale, complaints and appeals.
3 detailed guides on real estate regulationOverview
The Real Estate (Regulation and Development) Act, 2016 regulates how real estate projects are registered, marketed and delivered. In Tamil Nadu it is administered by the Tamil Nadu Real Estate Regulatory Authority (TNRERA) under the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017. A project has to be registered with the Authority before it is advertised, booked or sold, and each phase of a project is registered on its own.
The Act sets out the promoter's duties on registration, project accounts and construction to sanctioned plans, and gives homebuyers remedies for delay, defective work and promises made in advertisements. Complaints about violations go to TNRERA, and claims for compensation go to its Adjudicating Officer. Orders of both can be taken in appeal to the Tamil Nadu Real Estate Appellate Tribunal.
The firm advises and represents clients in this area before the Madras High Court and the courts and tribunals in Chennai. It acts for developers on registration and compliance, for homebuyers with complaints about delay or defects, and for real estate agents on their obligations under the Act.
RERA guides
Each guide explains the law and procedure on one subject, with the sections involved and the court decisions that apply.
Buyer remedies
Our RERA Services services
For developers
Project registration
Preparing and filing the application under Sections 3 and 4 of the Act, with the plans, approvals, title documents and declarations TNRERA requires, so that the project can be advertised and sold. Each phase of a project is registered as a separate project under the explanation to Section 3.
Compliance audits
Checking advertising, disclosures, construction timelines and project finances, including the requirement in Section 4(2)(l)(D) that 70 per cent of the money collected from buyers is kept in a separate account with a scheduled bank and used only for land and construction costs.
Agreements for sale
Agreements for sale in the form the rules prescribe. Under Section 13, a promoter cannot take more than 10 per cent of the cost of the apartment, plot or building before a written agreement for sale is signed and registered, and the agreement has to state the payment schedule and the date of possession.
Ongoing projects
How the Act applies to projects that had not received a completion certificate when it came into force: Section 3 required the promoters of those projects to apply for registration within three months of commencement. The work also covers applications to the Authority for extension of registration and related approvals.
For homebuyers
Filing a complaint
A complaint about a violation of the Act is filed with TNRERA in Form M under Section 31 read with Rule 37 of the Tamil Nadu rules, with a fee of Rs. 1,000. A claim for compensation under Sections 12, 14, 18 or 19 goes to the Adjudicating Officer in Form N under Rule 38, with a fee of Rs. 5,000 and postage charges of Rs. 600. Both are heard under summary procedure.
Complaints about delay
Complaints under Section 18 for a refund of the amount paid with interest and compensation, or interest for every month of delay if the buyer stays in the project. The Tamil Nadu rules fix the interest at the State Bank of India's highest marginal cost of lending rate plus two per cent, and Rule 19 requires the refund to be paid within 90 days of it becoming due.
Defects and false promises
Complaints about structural defects, poor workmanship, changes to sanctioned plans, and amenities or specifications that were advertised but not delivered. Changes to the plans need the buyer's prior consent under Section 14(2), and changes affecting the building or common areas need the written consent of at least two-thirds of the allottees.
Compensation
Claims for compensation before the Adjudicating Officer under Section 71, which covers the promoter's obligations under Sections 12, 14, 18 and 19. The officer is to deal with the application within 60 days of receiving it, recording reasons if it takes longer.
For real estate agents
Registration and duties
Registration under Section 9 before an agent facilitates the sale or purchase of a plot, apartment or building in a project registered under Section 3, and the duties in Section 10, which include keeping the prescribed books and records and not facilitating the sale of a project that is not registered with the Authority.
Disputes and appeals
Representation
Hearings before TNRERA, the Adjudicating Officer and the Tamil Nadu Real Estate Appellate Tribunal, and proceedings before the Madras High Court.
Strategy
Choosing between a RERA complaint and a consumer complaint, based on the relief needed, the facts of the project and how the Authority has decided similar cases. Section 79 bars civil suits on matters the Authority, the Adjudicating Officer or the Appellate Tribunal can decide, but consumer commissions remain open to homebuyers, as the Supreme Court held in Experion Developers Pvt. Ltd. v. Sushma Ashok Shiroor, (2022) 12 SCC 286.
Laws we work with
- Real Estate (Regulation and Development) Act, 2016
- Tamil Nadu Real Estate (Regulation and Development) Rules, 2017
- Tamil Nadu Real Estate Regulatory Authority (General) Regulations, 2018
Courts and tribunals
- Tamil Nadu Real Estate Regulatory Authority (TNRERA)
- Adjudicating Officer under RERA
- Tamil Nadu Real Estate Appellate Tribunal
- Madras High Court
Questions and answers
Frequently asked questions
7 questions. These answers are general information about Indian law, not legal advice on your situation.
Which projects have to be registered with TNRERA?
Under Section 3 of the Real Estate Act, a project cannot be advertised, booked or sold without registration. Section 3(2)(a) exempts projects of up to 500 square metres of land or up to eight apartments, counting all phases, and projects with a completion certificate issued before the Act began are also outside the requirement. Each phase of a larger project is registered separately.
How much can a promoter collect before the agreement for sale?
Under Section 13(1), no more than 10 per cent of the cost of the apartment, plot or building, as an advance or application fee. Anything more can be taken only after a written agreement for sale with the buyer has been signed and registered. Section 13(2) requires the agreement to be in the prescribed form, with the payment schedule, the date of possession and the interest rates for default on either side.
What can a homebuyer do if possession is delayed?
Under Section 18, the buyer can withdraw and claim a refund of the amount paid with interest and compensation, or stay in the project and claim interest for every month of delay until possession is given. In Tamil Nadu the interest runs at the State Bank of India's highest marginal cost of lending rate plus two per cent under Rule 18 of the state rules, and Rule 19 requires the refund to be paid within 90 days of it becoming due. The complaint goes to TNRERA.
How is a complaint filed with TNRERA?
A complaint about a violation of the Act is filed in Form M under Section 31 and Rule 37, with a fee of Rs. 1,000 and postage charges of Rs. 600, and three sets of the complaint and documents reach the Authority by registered post or in person within seven days of the online filing. A claim for compensation under Sections 12, 14, 18 or 19 is filed before the Adjudicating Officer in Form N under Rule 38, with a fee of Rs. 5,000 and postage charges of Rs. 600. Both are decided under summary procedure.
How long is the promoter responsible for structural defects?
Under Section 14(3), for five years from the date of handing over possession. If the buyer reports a structural defect, or a defect in workmanship, quality or services, within that period, the promoter has to rectify it within 30 days at no charge, and if that is not done the buyer can claim compensation under the Act.
How long do I have to appeal a TNRERA order?
Under Section 44(2), 60 days from the date of receiving a copy of the order of the Authority or the Adjudicating Officer, and the Appellate Tribunal can accept a later appeal if there was sufficient cause for the delay. A promoter appealing must first deposit at least 30 per cent of the penalty, or the amount payable to the allottee including interest and compensation, under the proviso to Section 43(5).
Can a homebuyer still complain to a consumer commission?
Yes. Section 79 bars civil suits on matters the Authority, the Adjudicating Officer or the Appellate Tribunal can decide, but in Experion Developers Pvt. Ltd. v. Sushma Ashok Shiroor, (2022) 12 SCC 286, the Supreme Court held that Section 79 does not stop a consumer commission from hearing a homebuyer's complaint. The remedy in Section 18 is available along with other remedies the buyer may have.