New UP RERA Rule: No Payment Over 10% Without Signed Agreement Between Builders and Buyers
Agreement Between Builders and Buyers Now Mandatory: Chairman Sanjay Bhoosreddy’s Initiative Brings Hope
Greater Noida News: The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued strict guidelines to real estate promoters, stating that they must sign an “Agreement for Sale” with allottees before collecting more than 10% of the unit’s price. During a hearing of complaints from allottees, UP RERA Chairman Sanjay Bhoosreddy observed that in several cases, promoters had already taken 70-75% of the total unit cost as advance payment but had not signed any Agreement for Sale or Builder-Buyer Agreement (BBA) with the allottees. This situation violates Section 13 of the RERA Act.
Agreement with Buyers to Be Mandatory
In an official order, UP RERA has directed promoters to immediately sign the Agreement for Sale with allottees using the model agreement format available on the RERA portal. Furthermore, promoters are instructed to provide a copy of the signed agreement to the allottees and upload it on the complaint page of the RERA portal.
Strict Stance on Violations of the RERA Act
Using the provisions of Sections 35 and 36 of the RERA Act 2016, RERA made it clear that demanding more than 10% of the payment from an allottee without a valid Agreement for Sale is illegal. Chairman Bhoosreddy emphasized that it is the promoter’s duty to provide a proper agreement to ensure the interests of the allottees are protected.
Clarification Sought on Non-Standard Agreements
In some cases, it was found that promoters were signing Agreements for Sale using their own formats instead of the prescribed model agreement, which is a violation of the rules. UP RERA has demanded an explanation from these promoters as to why they deviated from the model format available on the RERA portal.
UP RERA Educates Home Buyers
UP RERA has launched a social media campaign to educate home buyers, advising them to only make payments beyond 10% of the unit cost after signing the Agreement for Sale. It also urged allottees to ensure they follow the model agreement, which can be accessed on RERA’s website under the legal section. Chairman Bhoosreddy further stressed that both allottees and promoters must adhere to the provisions of the RERA Act to avoid any fraud.
Authority to Ensure Strict Compliance with the RERA Act
UP RERA has made it clear that no irregularities or violations in the real estate sector will be tolerated. The primary goal of the RERA Act is to safeguard the interests of the allottees, and the authority will ensure that promoters fully comply with the Act and UP RERA’s orders.
