Latest News | Builders Cant Take Advance Payment of over 10 Pc Without Sale Agreement: UP RERA

Noida, Jan 5 (PTI) The UP RERA on Friday asked real estate promoters and home buyers to execute a registered agreement before making any transactions beyond 10 per cent of the home's cost.

The advisory by the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) is aimed at ensuring accountability on the part of the promoters and transparency in their business relations.

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"No promoter can take an advance payment of more than 10 per cent of the cost of the apartment, plot or building from any person without first executing a registered agreement for sale with him/her.

"Such an agreement must be on the model agreement for sale laid down by the state government under the Rules of 2018," the UP RERA said in a statement.

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UP RERA Chairman Sanjay Bhoosreddy said, "The advisory is intended to ensure accountability on the part of the promoters and transparency in their business relations".

He also sought to draw the attention of both the promoters and the home buyers to the statutory provisions enshrined under Section 13 of the RERA.

"The agreement between promoter and homebuyer must cover the particulars of development of the project, including the construction of building and apartments, along with specifications and particulars of internal and external development works," the UP RERA said.

The agreement will provide the dates and the manner of the payments toward the cost unit and specify the date on which the possession shall be handed over to the allottee, it added.

"The agreement shall specify the rate of interest payable by the promoter and the allottee to each other in case of default by either of them and these rates are also prescribed by the state government, which is SBI MCLR+1 per cent in this case," it noted.

Bhoosreddy further noted that there have been instances where the promoters have taken most of the payments from the gullible allottees without execution of the registered agreement for the sale or builder-buyer agreement.

He called upon the allottees to remain vigilant so that their lawful interest is not compromised, and in case of any grievance in this regard, an aggrieved allottee has a right to approach RERA under section 31 of the RERA Act for adjudication of his grievances and enforcement of his lawful claims.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)