June 10, 2024: Aimed to prevent arbitrary practices by promoters and reduce related disputes, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has introduced a standardised format for ‘Offer of Possession’ letters to flat buyers. As mentioned in an Economic Times report, this initiative follows a directive issued on May 29, 2024, mandating that promoters use the official format available on the UPRERA website.
According to UPRERA Chairman Sanjay Bhoosreddy, promoters often send ‘final demand letters’ and ‘final demand notices’ under the guise of ‘Offer of Possession’ letters, resulting in confusion among allottees. These documents sometimes include binding conditions not appropriate for possession offers. Bhoosreddy said that the ‘Offer of Possession’ letters must solely indicate the readiness to hand over the unit to the allottee.
The report stated that to address the issues, UP RERA has published a model ‘Offer of Possession’ letter on its portal. Promoters must use this format exclusively, ensuring uniformity and clarity for all stakeholders. This standardisation aims to resolve disputes and eliminate misunderstandings arising from varied letter formats.
Following the acquisition of the occupancy certificate (OC) or completion certificate (CC) for a project, promoters must send the ‘Offer of Possession’ letter to allottees through registered email, post and SMS. Moreover, project sites and head offices are required to display relevant information regarding possession offers.
The core message of the ‘Offer of Possession’ letter should be an invitation for the allottee to take possession of their unit. If any construction work remains, the promoter must clearly specify the outstanding tasks and the estimated time for completion. Any remaining liabilities for the allottee should align strictly with the original agreement for sale and be legally justified.
UP RERA specified that letters bearing titles such as demand notice or final demand notice will not be accepted as valid ‘Offer of Possession’ letters. Promoters should send the offer letters within two months of receiving the OC/CC and provide a copy of the OC/CC certificate to the allottees at the time of possession.
The move aims to boost transparency and fairness in the real estate sector, protecting the interests of buyers and promoters.
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