The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has introduced significant amendments to address long-standing concerns about unregistered property projects. According to reports from Business Standard, the amendments, notified on Thursday, have come into effect from March 25, 2027, under Section 85 of the Real Estate (Regulation and Development) Act, 2016. The changes aim to protect consumer interests and enhance transparency and accountability in the state's real estate sector by providing homebuyers with clear legal recourse when dealing with unregistered projects.
A major breakthrough for homebuyers is the ability to file complaints against unregistered projects, which previously left buyers with limited legal options. As reported by Business Standard, the new amendment explicitly states that complaints related to unregistered projects will now be heard by UP-RERA, closing a major loophole that developers were exploiting by launching or selling projects without registration. If UP-RERA finds that a developer violated registration norms, they may face penalties or enforcement action, providing much-needed clarity to previously ambiguous jurisdictional issues.
The amendments significantly streamline property transfer procedures, particularly for inheritance cases. According to the reports, when a property owner dies and the home is being transferred to a family member, the process is now much simpler and cheaper, with builders allowed to charge only up to ₹1,000 as a processing fee. The transfer process requires submission of documents including a death certificate, succession certificate, and no-objection certificates from other legal heirs to ensure legal compliance.
For transfers to non-family members, the amendments introduce a ₹25,000 maximum fee cap, replacing previous arbitrary charges where builders could impose percentage-based fees or high transfer charges without clear regulations. As reported by Business Standard, this fee structure brings predictability to the transfer process, addressing situations where builders previously charged fees based on property value or imposed high transfer charges without clear rules. The amendments also help fix practices where developers delayed registration or avoided it altogether, selling units through informal channels.
