The Uttar Pradesh Real Estate Regulatory Authority (UP Rera) has issued a directive, urging real estate developers and homebuyers to formalise a registered sale agreement before engaging in transactions exceeding 10% of a property’s total cost. This advisory from UP Rera aims to instil accountability among promoters and enhance transparency in their business dealings.
According to the authority’s statement, promoters are prohibited from accepting an advance payment exceeding 10% of the apartment, plot or building cost from any party without first executing a registered agreement for sale. This agreement must adhere to the model agreement for sale established by the state government under the Rules of 2018.
The agreement between the promoter and the homebuyer should encompass project development specifics, including the construction of buildings and apartments, as well as details about internal and external development works. It will outline the payment schedule for the unit cost, specifying dates and methods and indicate the date of possession handover to the allottee. Additionally, the agreement will specify the interest rates applicable in case of default by either party, as prescribed by the state government, which, in this instance, is SBI MCLR+1%.
Instances have arisen where promoters have collected substantial payments from unsuspecting allottees without completing the registration of the sale agreement or builder-buyer agreement. In such cases, aggrieved allottees have the right to approach Rera under section 31 of the Rera Act for the resolution of grievances and enforcement of their rightful claims. This measure reinforces the regulatory framework and safeguards the interests of both promoters and homebuyers in the real estate sector.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
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