RERA Tamil Nadu: Buyer's Guide for Coimbatore Properties

TNRERA (Tamil Nadu Real Estate Regulatory Authority) is the state-level regulatory body established under the Real Estate (Regulation and Development) Act, 2016 (RERA). It became operational in Tamil Nadu in June 2017 with its office located in Chennai.

Why RERA was created: Before RERA, the real estate sector was largely unregulated. Builders would: • Collect money from buyers without regulatory oversight • Delay project delivery by years without compensation • Misrepresent carpet area as "super built-up area" • Change approved plans without buyer consent • Divert homebuyer funds to other projects

What RERA changed: • Mandatory project registration with TNRERA before any marketing or sale • Escrow account requirement — 70% of collected funds must be kept in a dedicated project account and used only for that project • Carpet area transparency — builders must quote prices in carpet area • Strict delivery timelines with interest penalties for delays • Defect liability for 5 years after possession • Dedicated grievance redressal through the RERA Authority and Appellate Tribunal

For Coimbatore buyers, RERA is particularly important given the large number of new apartment projects and villa developments launched each year in areas like Saravanampatti, Kalapatti, Kovaipudur, and Peelamedu.

Before booking any new apartment or villa project in Coimbatore, always verify RERA registration. Here's how:

**Step 1: Visit rera.tn.gov.in** This is the official TNRERA portal. It is free to use — no login required for checking project registrations.

**Step 2: Search for the project** • Click on "Registered Projects" or "Search Projects" • You can search by: - Project name - Builder/promoter name - RERA registration number (format: TN/01/Building/XXXX/YYYY) - District (select Coimbatore)

**Step 3: Review the project details** A registered project page shows: • Registration number and validity period • Promoter/builder details (company name, address, directors) • Project land details (survey numbers, patta status) • Approved plan and sanctioning authority (DTCP/CCMC/LPA) • Number of units, completion date, and possession date • Quarterly progress updates (project status updates required by law) • Complaints filed against the project (if any)

**Step 4: Cross-check the registration number** The builder's brochures, advertisements, and sale agreement must display the TNRERA registration number. Cross-check this number on the portal — do not take the builder's word for it.

**Red flags:** • "RERA applied" or "RERA pending" — do not book until registration is confirmed • Expired RERA registration with no renewal • Project details on portal differ from brochure claims

TNRERA mandates extensive disclosures from builders, which you can verify on the portal:

**1. Project details:** • Site and location plan • Floor plans, building plans, and specifications as approved • Proforma of allotment letter, agreement for sale, and conveyance deed • Names and addresses of contractors, architects, structural engineers

**2. Land status:** • Title documents for the project land • Encumbrance status • Approvals from DTCP/CCMC/LPA (as applicable) • Any litigation pending on the land

**3. Financial details:** • Quarterly reports on funds collected and utilized from each project • 70% of collected funds must remain in the dedicated project escrow account

**4. Progress updates:** • Builders must upload quarterly construction progress reports on the TNRERA portal • These reports are public — you can track whether construction is on schedule

**5. Allotment specifics:** • Carpet area (defined under RERA as the actual usable floor area, excluding walls and common areas) • Undivided share (UDS) of land for each apartment • Amenities promised and their completion timeline

Tip for Coimbatore buyers: Before signing the sale agreement, download the registered project documents from TNRERA and verify that the builder's brochure matches the RERA disclosures — especially the carpet area, completion date, and promised amenities.

RERA gives home buyers significant legal rights. Know these before buying an under-construction property in Coimbatore:

**1. Delayed possession — right to interest:** If the builder fails to deliver possession by the agreed date, you are entitled to interest at the SBI MCLR + 2% (approximately 10–11% p.a.) for every month of delay. You can either claim this interest while staying in the project OR withdraw from the project entirely and get a full refund with interest.

**2. Carpet area transparency:** Builders cannot charge for super built-up area. The sale price must be linked to carpet area. If the actual carpet area at possession is less than what was agreed, the builder must refund the proportionate amount.

**3. No changes to approved plan:** Builders cannot make major changes to the sanctioned building plan without written consent from 2/3 of all allottees. If your builder changes the floor plan, tower position, or common amenities without consent, this is a RERA violation.

**4. Defect liability for 5 years:** After receiving possession, if any structural defects, workmanship issues, or poor quality materials are found within 5 years, the builder must rectify them free of charge within 30 days of notice.

**5. Title assurance:** The builder must ensure clear title to the project land. If a title dispute arises after you buy, the builder is liable under RERA.

**6. Right to all documents:** You are entitled to receive copies of all documents related to your apartment — sale agreement, allotment letter, construction specifications, and approved plans.

If a builder violates RERA provisions, you can file a complaint with TNRERA. The process is entirely online:

**Step 1: Gather evidence** Collect all relevant documents: sale agreement, allotment letter, payment receipts, builder's communication, and evidence of the violation (delay notice, plan change communication, defect photos).

**Step 2: File the complaint online** Visit rera.tn.gov.in → "File Complaint" → Register as a complainant → Fill in complaint details.

Complaint fee: ₹1,000 for residential projects (₹5,000 for commercial).

**Step 3: Hearing process** TNRERA will send notice to the builder and schedule a hearing. The process is quasi-judicial — both parties present their case. The Authority typically passes orders within 60 days of filing.

**Step 4: TNRERA order** TNRERA can order: • Refund of amount paid with interest • Compensation for delay • Rectification of defects • Penalty on the builder (up to 5% of the estimated project cost for violations)

**Step 5: Appellate Tribunal** If you are not satisfied with TNRERA's order, you can appeal to the Tamil Nadu Real Estate Appellate Tribunal within 60 days of the order.

**TNRERA contact:** TNRERA office is in Chennai (Nandanam). For Coimbatore-specific issues, complaints can be filed online — physical presence is not required for most hearings.

Not all projects are mandatorily registered under RERA. Understanding the thresholds is important:

**Projects that MUST register with TNRERA:** • Residential or commercial projects where the plot area exceeds 500 square metres OR the number of units exceeds 8 • Under-construction projects that had not received completion certificate before May 1, 2017 (RERA's implementation date) and had unsold inventory must also register

**Projects exempt from RERA registration:** • Small projects: plot area ≤ 500 sqm AND number of units ≤ 8 • Projects where the promoter has received completion certificate before RERA's commencement • Renovation or repair projects that do not involve marketing, advertising, or new allotments

**Practical implications for Coimbatore buyers:**

• Most large builder projects in Coimbatore (apartments above 8 units, villa projects with large layouts) are covered under RERA • Small individual builder constructions (a builder putting up a 4-flat building on their own plot) may not be covered • For plots sold in DTCP-approved layouts: the layout development itself is not RERA-registered, but individual villa projects built on those plots by builders may be • Agricultural plots sold directly by landowners are not RERA transactions

When in doubt, ask the seller/builder for their TNRERA registration number and verify it. The absence of RERA registration for a large project is a red flag that the builder may be operating without regulatory oversight.

RERA has significant penalty provisions for builder violations. Understanding these helps you assess the seriousness of your grievance:

**1. Not registering a project (Section 3 violation):** Penalty up to 10% of the estimated project cost. For a ₹50 crore project, this could be ₹5 crore. In serious cases, imprisonment of the promoter up to 3 years.

**2. Providing false information (Section 60):** Penalty up to 5% of the estimated project cost for providing false information at the time of registration.

**3. Failure to comply with TNRERA orders (Section 63):** If the builder does not comply with TNRERA's order, they face daily penalties of up to 5% of the estimated project cost, plus potential imprisonment.

**4. Non-disclosure or delayed disclosure:** Builders failing to upload quarterly progress reports face penalties from the regulatory authority.

**5. Delayed possession (buyer perspective):** The builder must pay interest at SBI MCLR + 2% per annum for each month of delay to all affected buyers — this is an automatic entitlement, not a discretionary penalty.

**Reality check:** In practice, TNRERA proceedings take 6–18 months. Builders with financial difficulties may not have funds to pay compensation even after an order. Assess the builder's financial health, track record, and completion history before buying. Prefer builders with completed projects in Coimbatore that you can visit and speak to existing residents.

Both TNRERA and Consumer Courts offer redressal for home buyer grievances, but they serve different purposes:

**TNRERA (Tamil Nadu Real Estate Regulatory Authority):** • Best for: Delayed possession, plan changes, carpet area shortfall, defect liability, or non-disclosure by builders • Jurisdiction: Only for RERA-registered projects • Speed: Faster — typically 3–6 months for an order • Cost: ₹1,000 filing fee • Relief: Interest, refund, compensation specific to RERA provisions • Appeal: TNRERA Appellate Tribunal

**Consumer Court (District Consumer Disputes Redressal Commission):** • Best for: Builder misrepresentation, deficiency in service, unfair trade practices — especially for projects NOT under RERA or for issues not squarely covered by RERA • Jurisdiction: Any consumer transaction, including property purchases up to ₹1 crore (District), up to ₹10 crore (State), above ₹10 crore (National) • Speed: Slower — 6–24 months • Cost: ₹200–₹2,000 filing fee (based on claim amount) • Relief: Compensation, refund, and punitive damages

**Civil Court:** • Best for: Title disputes, fraud, specific performance of agreement, damages beyond consumer forum limits • Speed: Slowest — 3–7 years on average • Use as a last resort or for complex title matters

**Recommendation:** For RERA-registered projects, always start with TNRERA — it is faster, cheaper, and designed specifically for real estate disputes. File in Consumer Court for non-RERA projects or to supplement RERA proceedings.