UPRERA has mandated real estate brokers to register projects under the exact names displayed on approved maps and to exclusively sell homes based on carpet area.
In a series of directives aimed at protecting prospective purchasers, the Uttar Pradesh Real Estate Regulatory Authority has issued key instructions for real estate developers. These include requirements to register projects under the exact name that appears on the approved map and to sell housing units strictly based on carpet area. An additional rule stipulates including names of neighboring co-allottees in homebuyers’ complaints.
Moreover, the regulatory authority now makes it obligatory for real estate developers to provide evidence of ownership for the land they plan to develop.
- Developers Must Adhere to Project Names on Approved Maps
To eliminate confusion among potential buyers, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has instructed developers to utilize the project names as indicated on their approved maps, which hold local authorities’ endorsement. The agency emphasizes that project brands must match the names listed in these official documents.
It has become challenging to accurately gauge the completion status of projects and to decide on promoters’ requests for closure of project accounts due to discrepancies between project names and those on the Occupancy Certificate (OC) or Completion Certificate (CC). As stated by RERA, “The inconsistencies emerged due to project names differing from those registered with it and those in the OC or CC, prompting these directives.”
Concerns emerged when promoters utilized project names that deviated from those registered with RERA, leading to skepticism regarding the intentions of both existing and prospective homeowners. Thus, to counter these irregularities, RERA insists that promoters must market the projects under the registered names.
- Homebuyers Must Include Co-Allottee Names in Complaints
RERA requests that homebuyers now include co-allottees' names in their complaints. Some complainants had previously omitted co-allottees, resulting in resolution issues where only one allotee appeared during hearings. The co-allottee’s name will now be recorded as a co-complainant alongside the main allotee’s complaint, thanks to RERA's updated system.
Joint ownership of properties, with valid co-allottee listings comprising relatives or even partners, is common. This may include more than two persons.
UPRERA Plans to Train Real Estate Brokers
The state’s RERA authority is set to extend certifications and training to both aspiring and current real estate agents. It has announced the initiation of a specialized training program that will focus on UPRERA regulations as well as the stipulations outlined in the RERA Act, drawing parallels to the MahaRERA directive from the previous year requiring real estate agents to complete a course followed by an examination.Developers to Provide QR Codes with Project Details
Additionally, UPRERA has urged developers to furnish buyers with project registration certificates that come embedded with QR codes.
The QR code will include crucial information such as the project name, promoter’s name, registration number with date specifications, project duration, and promoter addresses. Moreover, the registration certificate will contain significant requirements, particularly the stipulation that 70% of funds collected from buyers, alongside all proceeds from project financing, must be placed in a separate bank account dedicated solely to project development costs.
To enhance visibility for current and prospective homebuyers, UPRERA has instructed promoters to display the QR code-laden registration certificates prominently in their offices and project site marketing locations.
“Homebuyers can scan the QR code with their smartphones to retrieve project details such as land information, approval statuses, and quarterly progress reports on the authority’s website,” the statement added.
- Developers Must Sell Units Based on Carpet Area
Lastly, UPRERA has positioned that real estate developers are only permitted to sell houses or apartments based on carpet area. According to UPRERA, “There is no basis for the term ‘Super Area’ as per the RERA Act and other related contracts.”
The law states that buying and selling apartments is permitted strictly based on carpet area, making any sale based on this alternate measure illegal. UPRERA Chairman Sanjay Bhoosreddy stated, “Allottees must regard the Carpet Area as the actual area of the unit or apartment and remit payment accordingly.” An illustrative sale agreement detailing carpet area is available on the UP RERA portal. As per the RERA Act, conducting sales on the basis of “Super Area” is therefore prohibited.
If developers contravene this clause, they could face legal issues, according to UPRERA. Recently, the pan-Indian Association of Homebuyers, known as Forum for People’s Collective Efforts (FPCE), has suggested the establishment of a governmental body to oversee all state real estate regulatory authorities (RERAs) in India.