Circular No. TNRERA/7/2018, Releasing of advertisement in any media and other issues
The Tamil Nadu Real Estate Regulatory Authority issued Circular No. TNRERA/7/2018 on 22 November 2018, signed by the Principal Secretary to Government, Housing and Urban Development Department, and Chairperson of the Tamil Nadu Real Estate Regulatory Authority. It sets requirements for project advertisements, site display boards, registration of certain projects and layouts, quarterly reporting, escrow account audits, bank account transfers and project names used for registration.
What the circular governs
Circular No. TNRERA/7/2018 applies to promoters and registered real estate projects dealing with the Tamil Nadu Real Estate Regulatory Authority. It covers advertisements in print, television, radio, electronic and social media, as well as information displayed at project sites.
For a buyer, the circular identifies information that should be visible in advertisements and on site boards. It also sets financial reporting and registration duties for promoters.
Advertisement and site display requirements
The Tamil Nadu Real Estate Regulatory Authority requires advertisements to:
- Display the Real Estate Regulatory Authority registration number prominently.
- Include the Tamil Nadu Real Estate Regulatory Authority website address.
- Avoid disclaimers stating that the information is subject to change.
Alternatively, where a completion certificate was applied for before 22 June 2017 and has been obtained, that fact must be stated in the advertisement.
The Tamil Nadu Real Estate Regulatory Authority registration number must also appear on the display board installed at the project site.
Registration requirements
Circular No. TNRERA/7/2018 requires the following projects or layouts to seek registration:
- A project where the completion certificate was applied for before 22 June 2017 but the application was rejected.
- Every regularized layout that still has unsold plots.
When applying for registration, the promoter must use the project name or number shown in the approved plan.
Reporting and financial controls
Promoters of registered projects must provide quarterly project progress information to the Tamil Nadu Real Estate Regulatory Authority in CD format.
The promoter must arrange an audit of the escrow account within six months after the end of every financial year. The audit must be conducted by a practising Chartered Accountant, who must certify and sign the statement of accounts.
The audit must verify that money collected for a particular project was used for that project. It must also verify that withdrawals were proportionate to the project’s percentage of completion.
A promoter may transfer the bank account of a registered project only with the consent of the Tamil Nadu Real Estate Regulatory Authority.
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
What details should I look for in a project advertisement?
The advertisement should prominently show the Real Estate Regulatory Authority registration number and the Tamil Nadu Real Estate Regulatory Authority website address. It should not contain a disclaimer saying that the information is subject to change.
Must the registration number be displayed at the project site?
Yes. The Tamil Nadu Real Estate Regulatory Authority registration number must be shown on the display board installed at the site.
Does a regularized layout with unsold plots require registration?
Yes. Circular No. TNRERA/7/2018 states that all regularized layouts with unsold plots should apply for Real Estate Regulatory Authority registration.
Can a promoter transfer the bank account of a registered project?
The bank account of a registered project can be transferred only with the consent of the Tamil Nadu Real Estate Regulatory Authority.
