Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 (2017)
The Governor of Tamil Nadu issued the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 under the Real Estate (Regulation and Development) Act, 2016, with effect from 22 June 2017. The rules govern project registration, disclosures by promoters, treatment of ongoing and phased projects, project account withdrawals, and registration extensions.
What the rules govern
The Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 apply to real estate project registration and related promoter obligations in Tamil Nadu. They define ongoing projects, prescribe information to be filed with the Real Estate Regulatory Authority, and address disclosures relevant to buyers and allottees.
Who is affected
The Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 directly affect promoters seeking registration, including promoters of ongoing projects. They also affect buyers and allottees because promoters must disclose project status, carpet area, plot area, title information, encumbrances, approvals and parking shown in approved plans.
Certain projects are excluded from the definition of an ongoing project. These include qualifying layout projects where roads and open spaces were gifted to the local body, and qualifying structurally completed projects within or outside the Chennai Metropolitan Area. Projects whose completion certificate applications are rejected by the Chennai Metropolitan Development Authority for violations must be registered with the Real Estate Regulatory Authority.
Key registration and disclosure requirements
Promoters applying for registration must provide:
- An authenticated copy of the promoter's Permanent Account Number card.
- The audited balance sheet for the preceding financial year.
- Title deeds and documents supporting ownership or development rights.
- Details of encumbrances and third party rights over the land.
- The landowner's consent and relevant agreements where the promoter is not the owner.
- Project site latitude and longitude.
- Approved plans, approval letters and no objection certificates.
- Approved parking details and technical designs for structural stability, wiring, plumbing and sewage treatment.
The promoter's declaration must state that no allottee will be discriminated against when an apartment, plot or building is allotted.
Ongoing and phased projects
Promoters of ongoing projects must apply for registration and disclose the project's status and extent of completion. Earlier agreements remain valid. Apartment size must be disclosed by carpet area, while plotted developments must disclose the actual plot area, even where earlier sales used another basis.
Phases may be registered as independent projects in the circumstances described in the rules. Consent requirements for later plan changes may be exempted where phased development was agreed with allottees and the stated conditions are met.
Project funds and registration decisions
Withdrawals from the separate project account require certification by an engineer, architect and chartered accountant. The Authority issues successful registration in Form C and communicates rejection in Form D. An extension application must generally be filed at least three months before registration expires.
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Common questions
Do agreements signed before these rules remain valid?
Yes. Agreements already entered into between a promoter and allottee before commencement of the rules are not affected. Existing documents for ongoing projects remain legally valid and enforceable without limiting the allottee's rights.
Must an ongoing apartment project disclose carpet area?
Yes. The promoter must disclose apartment size based on carpet area, even if the apartment was earlier sold using super area, super built up area or built up area.
What title information must a promoter provide for registration?
The promoter must provide the title deed, supporting title documents, details of encumbrances and, where the promoter is not the owner, the owner's consent and relevant development or collaboration agreements.
Are any government housing projects exempt from the registration fee?
The registration fee is not levied for projects developed by the Tamil Nadu Slum Clearance Board, affordable housing projects of the Tamil Nadu Housing Board, and housing projects executed by the Tamil Nadu Police Housing Corporation.
