The Real Estate (Regulation and Development) Act, 2016 (11 IV 4)
The Ministry of Law and Justice, Legislative Department, published the Real Estate (Regulation and Development) Act, 2016, Act No. 16 of 2016, dated 26 March 2016, in the Tamil Nadu Government Gazette on 15 March 2017. Enacted by Parliament, the Act establishes a Real Estate Regulatory Authority and an Appellate Tribunal, promotes transparent real estate sales, protects consumers and provides a mechanism for resolving disputes.
What the Act does
The Real Estate (Regulation and Development) Act, 2016 governs the regulation and promotion of the real estate sector. It aims to make the sale of plots, apartments, buildings and real estate projects efficient and transparent, while protecting consumers. It also provides for a Real Estate Regulatory Authority, adjudicating officers and a Real Estate Appellate Tribunal.
The Act extends to the whole of India except the State of Jammu and Kashmir. Its provisions come into force on dates appointed by the Central Government through notification in the Official Gazette, and different provisions may begin on different dates.
Who may be affected
The Real Estate (Regulation and Development) Act, 2016 is relevant to:
- Buyers and later purchasers of plots, apartments or buildings, described as allottees.
- Developers, builders, land developers, assignees, development authorities and public bodies falling within the definition of promoter.
- Competent authorities that approve development and issue commencement, completion or occupancy certificates.
- Architects, engineers, companies, firms, cooperative societies and associations involved in real estate projects.
A tenant is not treated as an allottee merely because a plot, apartment or building is rented to that person.
Key definitions for property buyers
The Real Estate (Regulation and Development) Act, 2016 defines important property terms:
- Carpet area is the net usable floor area of an apartment. It excludes external walls, service shafts, exclusive balconies, verandahs and open terraces, but includes internal partition walls.
- Common areas include project land, stairs, lifts, common entrances, basements, terraces, parks, play areas, open parking, common storage and shared service installations.
- A garage must have a roof and walls on three sides. An unenclosed or uncovered parking space is not a garage.
- A completion certificate confirms that development follows the approved plan, layout and specifications.
- An occupancy certificate permits occupation of a building with civic infrastructure such as water, sanitation and electricity.
- An advertisement includes notices, circulars and publicity offering property for sale or inviting advances or deposits.
Interest and project costs
The Real Estate (Regulation and Development) Act, 2016 requires the promoter and allottee to face equal interest rates for their respective defaults. Estimated project cost includes land cost, taxes, cess, development expenses and other charges.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does the Act cover a person who buys an apartment from the original allottee?
Yes. The definition of allottee includes a person who later acquires the allotment through sale, transfer or another method.
Is a tenant treated as an allottee under the Act?
No. A person given a plot, apartment or building on rent is excluded from the definition of allottee.
Does carpet area include balconies and internal partition walls?
Carpet area excludes exclusive balconies, verandahs and open terraces, but includes the area covered by internal partition walls.
Is an open parking space considered a garage?
No. A garage must have a roof and walls on three sides. Unenclosed or uncovered parking, including open parking, is excluded.
