New Directives Aim to Protect Homebuyers’ Rights

Lucknow, October 12, 2024: The Uttar Pradesh Real Estate Regulatory Authority (RERA) has issued a crucial directive requiring all promoters to sign Sale Agreements (BBA) with homebuyers without delay. This mandate aims to enforce compliance with Section 13 of the RERA Act and uphold the interests of buyers.

Violations Found in Multiple Cases

During hearings led by RERA Chairman Mr. Sanjay Bhusareddy, it was revealed that several promoters had collected over 10% of the unit cost from buyers, with some even reaching 70-75%, without signing any Sale Agreements. Such practices violate both RERA’s guidelines and the rights of the homebuyers.

Immediate Compliance Required from Promoters

The authority has instructed that promoters must immediately execute Sale Agreements based on the model provided by RERA’s 2018 regulations. A copy of this agreement must be shared with the buyer and uploaded on the RERA complaint page for transparency.

Homebuyers Advised to Stay Informed

RERA has continuously advised homebuyers to refrain from paying more than 10% of the unit cost to any promoter without a signed Sale Agreement. Buyers are encouraged to only enter agreements that conform to the model format approved by the state government, which is publicly accessible on the RERA website.

Clarification Demanded on Non-Compliance

In instances where agreements deviate from the model format, RERA has demanded explanations from promoters as to why alternative agreements were signed despite the availability of the approved template.

Ensuring Accountability in the Real Estate Sector

Mr. Bhusareddy emphasized that promoters must adhere to the model Sale Agreement format approved by the Uttar Pradesh government. No promoter should demand more than 10% of the unit cost without an executed agreement. He reiterated that compliance with the RERA Act is non-negotiable, and any misleading practices by promoters will not be tolerated.

RERA remains committed to protecting the interests of homebuyers, ensuring that all regulatory provisions are followed diligently. This latest directive marks a significant step toward enhancing transparency and accountability in the real estate market.