TNRERA Cracks Down: Banning Misleading Real Estate Ads

Tamil Nadu RERA has banned vague disclaimers like 'terms and conditions apply' in real estate ads, mandating clear builder and project details to protect homebuyers.

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TNRERA Cracks Down: Banning Misleading Real Estate Ads
Real Estate News:Tamil Nadu RERA (Real Estate Regulatory Authority) has taken a significant step to ensure transparency and fairness in the real estate market by cracking down on misleading advertisements. The authority has banned the use of vague disclaimers like 'terms and conditions apply' in real estate ads, requiring builders to clearly mention their name, office address, contact details, and the exact project location.

The order, dated July 1, 2023, mandates that all developers' project advertisements in newspapers, magazines, and websites must contain the TNRERA registration number with a QR code as given in Form-C and the website address of the Authority. The TNRERA registration number with QR code and website address must be displayed at the top right corner of the advertisement. The font size of the letters and numbers used must not be less than twelve.

Regulations on brochures, leaflets, and outdoor publicity are also stringent. All printed materials, such as brochures, leaflets, and flyers, must clearly show the project's RERA registration number, a QR code (as given in Form-C), and one-fourth of the Authority’s website address. Similarly, all outdoor ads, including big hoardings, small boards on road dividers, streetlight poles, buses, vehicles, and bus shelters, must also display the RERA registration number, QR code (Form C), and the website address of the Authority.

The guidelines also prohibit vague disclaimers like ‘terms and conditions apply.’ Every advertisement must clearly state the builder’s name, office address, and contact information, as well as the accurate project location, leaving no room for ambiguity. The location of the project, as given in the approved plan, should be mentioned in the advertisement. If the promoter wishes to mention the nearby landmark, the distance of the project site from such a landmark by the most commonly used route shall be mentioned. Travel time to the project site from such landmarks shall not be mentioned as it varies depending on the traffic conditions.

All promotions shared on social media, such as Facebook, Twitter, Instagram, or LinkedIn, must include the project’s RERA registration number along with a link to the TNRERA website. Legal experts emphasize that these regulations are crucial to protect homebuyers. If a developer makes a representation to a home buyer, whether through a brochure, advertisement, or sale agreement, and that representation turns out to be false or inaccurate, it constitutes a breach of trust. This is legally actionable, and in such cases, homebuyers have the right to seek compensation or other remedies under RERA or before a consumer court.

Advocate Chandrachud Bhattacharyya explained that such legal safeguards are necessary because homebuyers are often misled by glossy marketing or vague promises. He emphasized that the larger principle at play is that a developer cannot misrepresent project features or intentions. Authorities like RERA are now laying down clear guidelines to ensure buyers can make informed decisions and receive fair redressal when misrepresentation of projects is being done.

These regulations are critical to protect homebuyers. They help ensure that when someone invests in what is often their dream home, they do so with clarity, transparency, and legal protection.

Frequently Asked Questions

What is TNRERA?

TNRERA stands for Tamil Nadu Real Estate Regulatory Authority. It is a regulatory body established to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector.

What disclaimers are banned by TNRERA?

TNRERA has banned vague disclaimers like 'terms and conditions apply' in real estate advertisements. Builders must now provide clear and accurate information about their projects.

What information must be included in real estate ads?

All real estate advertisements must include the builder’s name, office address, contact details, the exact project location, and the TNRERA registration number with a QR code. The project’s RERA registration number and a link to the TNRERA website must also be included in social media promotions.

Why are travel time claims prohibited in real estate ads?

Travel time claims are prohibited because they can vary significantly due to changing traffic conditions. Instead, the distance from landmarks must be mentioned to avoid misleading homebuyers.

What legal actions can homebuyers take if they are misled by false advertisements?

If a homebuyer is misled by false or inaccurate representations in a real estate advertisement, they can seek compensation or other remedies under RERA or before a consumer court. These legal safeguards are in place to protect the interests of homebuyers.

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