Table of Contents
The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interests of homebuyers. It has warned developers against offering ‘conditional’ possession to homebuyers, saying flats should be handed over only after all amenities promised in the sale agreement are ready. The state real estate regulator has also said that it will assign a unique QR code to each new project at the time of registration and promoters need to publish them in their brochures and advertisements.
With the aim of promoting transparency in the real estate market, UPRERA has said that it will assign a unique QR code to each new project at the time of registration and promoters need to publish them in their brochures and advertisements.
UPRERA has made it mandatory for promoters to publish project QR codes in all documents shared with the allottees such as booking forms, allotment letters, BBAs (builder-buyer agreements).
It noted that home buyers at times don’t have access to verify amenities and other details of projects and have to solely rely on advertisements done by promoters.
“Anybody desirous to make investment in a project can simply scan this code with his mobile phone, readily get all the details of the project from the portal of UP RERA and verify the information about the projects provided by the promoter in the advertisements,” it said in a statement.
Also Read: Follow provisions of RERA Act in advertisements, promotions: UP RERA to promoters
Promoters must ensure that in all types of advertisements and promotional materials, including print, electronic, digital and radio among others, of a project, the RERA registration number of the project, its unique QR code, RERA portal and details of project collection account number are mentioned prominently.
2. Directs realtors to offer possession of housing units only after amenities promised in sale agreement are ready
Uttar Pradesh real estate regulatory authority (UP-RERA) has said that real estate promoters are arm twisting homebuyers to take possession of housing units on terms and conditions that are not mentioned in the original sale agreement.
It said that it had received several complaints from homebuyers that they were forced to sign possession letters even though amenities and services promised in the sale agreement were not ready.
Also Read: Promoters arm-twisting allottees in UPRERA’s sights
The regulatory authority has received complaints from allottees that promoters (developers) are offering conditional possession of units by means of a declaration or agreement and forcing them to sign it. This agreement is different from the Agreement for Sale and illegal because it contains conditions that restrict allottees to exercise their legal rights in the future, it said.
“Complaints of conditional possession of units to allottees have been received. This act of promoters is against the principle of natural justice and objectives of the RERA Act,” said Sanjay Bhoosreddy, chairman, UPRERA.
“Promoters should sell units (flats) only on the basis of facts and approved maps, layouts and provide possession without deviating from the terms of the Agreement for Sale so that the allottees do not feel cheated and dissatisfied in any way,” added Bhoosreddy.
3. Warns some promoters that projects will be put in ‘abeyance list’ if they fail to upload land records or maps on portal
To safeguard the interests of homebuyers, the UP RERA said that promoters of 400 group housing projects in Uttar Pradesh have been warned of putting them in “abeyance” list after they failed to upload the land records or maps on its portal.
“After in-depth scrutiny of the records of the projects registered with UP RERA, it was found that the promoters of about 400 projects have not uploaded the project map and land ownership related documents or at least one of them on RERA portal. These projects were registered by the promoters during the early days of RERA. The promoters had been continuously warned since 2018 to upload all the project documents on the portal,” said the regulator.
“This decision has been taken with the objective of alerting the allottees and guarding them from being defrauded by such promoters,” it said.
4. Sale and purchase of real estate projects should be executed only through agents registered with UP RERA
UPRERA has said that sales and purchase of real estate projects should be executed only through agents registered with the regulator to safeguard the interests of all stakeholders.
The regulatory authority took the step in view of an increasing number of complaints related to sale of flats based on misleading information and duping of home buyers by agents. “If a UPRERA-registered agent provides false and misleading information during such sales-purchase, the aggrieved person can lodge a complaint with the UPRERA.
Also Read: Real estate projects – execute sale, purchase only through registered agents: UPRERA
“UPRERA can also penalise agents if they are found guilty. Sales and purchase of properties only through UPRERA registered agents are secure,” added UPRERA.
“Real estate agents have an important role in the real estate sector. It is of paramount importance that they show transparency and credibility. We are aiming at the introduction of professionalism in the work of Real Estate Agents,” said Sanjay Bhoosreddy, chairman, UPRERA.
“We have made arrangements for training and certification of agents. Homebuyers will also verify the registration details of such agents from our website,” he added.
5. UPRERA plans to revive stalled housing projects comprising 10,000 units
The Uttar Pradesh regulatory authority is also planning to revive stalled housing projects of 10,000 units to protect homebuyers’ interests and lenders.
The authority has taken up cases of 17 housing projects, worth around ₹2,000 crore, that are stuck for various factors, including siphoning of funds, loan defaults, bankruptcy of promoters, and financial impropriety.
“The regulator will meet all defaulting promoters, bankers, financial institutions, and agents to prepare a road map for the revival of projects,” said Bhoosreddy.
