UP-RERA Enhances Property Transfer Rules and Buyer Protection

Homebuyers in Uttar Pradesh may finally see relief from a major concern regarding what happens when a property project is not registered with RERA. For years, such cases left buyers with limited legal options, often forcing them to deal with delays, poor construction, or disputes without a clear grievance redressal path.

However, with the latest amendments by the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA), the body aims to fix these issues and make the process easier for complainants. The changes also intend to ease property transfers after the owner's death or transfer to a non-family member.

In a statement issued on Thursday, RERA notified that several important changes have been introduced through these amendments with the objective of protecting consumer interests and enhancing transparency and accountability in the state’s real estate sector, according to Business Standard. These amendments have been issued under Section 85 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act) and have come into effect from March 25, 2027.

What Changes for Homebuyers?

After the amendment, homebuyers can now file complaints against unregistered projects, bringing much-needed clarity to a previously ambiguous area. Earlier, there was uncertainty over whether UP-RERA had jurisdiction in such cases, according to Business Standard. But, the new amendment explicitly states that complaints related to unregistered projects will now be heard by the authority. This move closes a major loophole that some developers were exploiting, such as launching or selling projects without registering them, and thereby bypassing regulatory scrutiny, the report stated.

Property Developer Who Violates Rules May Face Penalties

If you bought a property under an unregistered project, then you can approach UP-RERA now and file a complaint. The authority will then examine whether the project should have been registered under the law, according to the news report. If the body finds that the developer violated registration norms, then they may face penalties or enforcement action, depending on the situation.

Property Transfer Rules

Under RERA, most projects are legally required to register before selling units. But in practice, some developers delay registration or avoid it altogether. Some even sell units through informal channels. Hence, the amendment helps to fix such practices.

In another instance, if a person wanted to transfer a property earlier, especially in situations such as inheritance, builders could choose to charge arbitrary and very high fees. Here's what changed after the amendment:

— In case of death of the owner: If the owner of the property dies, and the home is being transferred to a family member, the process is now much simpler and cheaper. The builder can charge only up to ₹1,000 as a processing fee. As part of the process, a person would need to submit documents, including a death certificate, a succession certificate, and no-objection certificates (NOCs) from other legal heirs, in order to ensure that the transfer is legal.

— If you transfer to a non-family member: If the property is being transferred (sold or reassigned) to someone who is not a part of the owner's family, then the builder can charge a maximum of ₹25,000. This cap on charges brings predictability, contrary to previous situations, where builders could charge a percentage of the property value or impose high “transfer charges” without clear rules, the news report stated.

These amendments by UP-RERA are a significant step towards ensuring fairer practices in the real estate sector, providing homebuyers with more legal avenues and reducing the burden of arbitrary fees and delays in property transfers.