UP RERA Enforces Registered Agreements for Real Estate Transactions

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued an advisory to real estate promoters and home buyers, urging them to execute a registered agreement before making any transactions beyond 10% of the home's cost. This move aims to ensure accountability on the part of promoters and transparency in their business relations.

Registered Agreement Mandatory for Transactions Beyond 10%

According to the advisory, no promoter can take an advance payment of more than 10% of the cost of the apartment, plot, or building from any person without first executing a registered agreement for sale with them. This agreement must be based on the model agreement for sale laid down by the state government under the Rules of 2018.

UP RERA Chairman's Statement

UP RERA Chairman Sanjay Bhoosreddy emphasized the importance of the advisory in ensuring accountability and transparency in the real estate sector. He also drew attention to the statutory provisions enshrined under Section 13 of the RERA, which outlines the requirements for agreements between promoters and home buyers.

Agreement Details

The agreement between the promoter and home buyer must cover various particulars of the project's development, including the construction of buildings and apartments, along with specifications and details of internal and external development works. It should also specify the dates and manner of payments towards the cost unit and the date of possession handover to the allottee.

Interest Rates and Default Provisions

The agreement must specify the interest rates payable by the promoter and the allottee to each other in case of default. These rates are prescribed by the state government and are currently set at SBI MCLR + 1%.

Caution for Allottees

Bhoosreddy highlighted instances where promoters have taken significant payments from allottees without executing a registered agreement. He urged allottees to remain vigilant to protect their lawful interests. In case of any grievance, aggrieved allottees have the right to approach RERA under Section 31 of the RERA Act for adjudication of their grievances and enforcement of their lawful claims.

The UP RERA's advisory serves as a crucial step in safeguarding the rights of home buyers and promoting transparency in the real estate sector. By mandating registered agreements and outlining the essential details to be included, the authority aims to prevent disputes and ensure a fair and accountable environment for both promoters and home buyers.