Overview: Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) recently issued an advisory, urging promoters and home buyers to execute a registered agreement for sale before demanding or paying more than 10 percent of the unit cost. This move aims to ensure accountability among promoters and enhance transparency in their business dealings.
Sanjay Bhoosreddy’s Statement: Sanjay Bhoosreddy, Chairman of UP-RERA, emphasized that the advisory intends to establish accountability and transparency within the real estate sector.
Section-13 of RERA Statutory Provisions Highlights:
- Limitation on Advance Payment:
- Provisions restrict promoters from accepting advance payments exceeding 10 percent of the apartment, plot, or building’s cost without first executing a registered agreement for sale with the allottee.
- Key Agreement Particulars:
- The agreement must comprehensively cover project development specifics, including building and apartment construction details, internal and external development works, payment schedules, and possession handover dates.
- Interest Specifications:
- Furthermore, the agreement must outline the rate of interest payable by both the promoter and allottee in the event of default by either party.
Promoter Conduct and Sale Agreement:
Bhoosreddy highlighted past instances where promoters accepted substantial payments from unsuspecting allottees without executing the crucial registered agreement for sale, indicating the need for stringent adherence to the prescribed guidelines.
This advisory emphasizes the criticality of formalizing sale agreements, ensuring mutual protection and adherence to regulatory provisions within the real estate domain in Uttar Pradesh.