The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued a directive to real estate developers, requiring them to sign an agreement for sale with buyers before collecting more than 10 per cent of the total property value. This move aims to address complaints raised by allottees regarding developers collecting a significantly higher percentage of the total amount without executing a formal sale agreement.

Strict Adherence to Model Agreement

UP RERA has emphasised the importance of using the specified model agreement for sale transactions. Any agreements drafted in other formats will not be accepted by the authority. This standardisation aims to ensure transparency and protect the interests of buyers.

Action Against Non-Compliance

The authority has made it clear that any developer who collects more than 10 per cent of the total amount from a buyer before signing the sale agreement will be considered in violation of Section 13 of the UP RERA Act. This implies that such actions could lead to penalties or other legal consequences.

Model Agreement to be Made Publicly Available

To facilitate compliance, UP RERA has instructed its authorised officials to promptly release the model sale agreement on its official website. This will enable developers and buyers to access and utilise the standardised format for their transactions.

Protecting Buyers’ Rights

The UP RERA’s directive is a significant step towards safeguarding the rights of real estate buyers in Uttar Pradesh. By mandating the signing of a sale agreement before collecting substantial amounts, the authority aims to prevent potential financial losses and disputes between buyers and developers.

Promoting Transparency and Accountability

The requirement for developers to use the specified model agreement also promotes transparency and accountability in the real estate sector. By standardising the terms and conditions of sale agreements, UP RERA aims to reduce confusion and protect buyers from unfair practices.

Conclusion

The UP RERA’s decision to enforce stricter regulations for real estate transactions is a positive development for buyers in the state. By implementing measures to protect buyers’ interests and ensure transparency, the authority is contributing to a more reliable and trustworthy real estate market in Uttar Pradesh.