For years, one of the biggest risks in buying property—especially in smaller cities or under-construction projects—was this: what happens if the project isn’t registered with RERA?
Until now, the answer was often frustrating. If a project wasn’t registered under the Real Estate (Regulation and Development) Act (RERA), buyers had limited legal recourse. Many were left stuck with delays, poor construction, or even fraud—with no clear path to file complaints.
That is what the latest amendments by the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) aim to fix.
In a statement issued on Thursday, RERA said several important changes have been introduced through these amendments with the objective of protecting consumer interests and enhancing transparency and accountability in the state’s real estate sector.
These amendments have been issued under Section 85 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act) and have come into effect from March 25.
What has changed now
The biggest shift is simple but powerful:
Homebuyers can now file complaints even against unregistered projects
Earlier, there was confusion over whether UP-RERA had jurisdiction in such cases. The new amendment removes that ambiguity by clearly stating that complaints from buyers in unregistered projects will now be heard by the authority.
This effectively closes a major loophole that some developers were using—launching or selling projects without registering them, and thereby avoiding regulatory scrutiny.
“UP-RERA has introduced new amendments (effective March 25, 2026) to better protect homebuyers, especially those who invested in projects that were not registered under RERA. Earlier, such buyers had no clear way to file complaints. Now, they can approach UP-RERA, which will first check whether the project should have been registered. If yes, action can be taken against the builder and the complaint will be heard on merits, giving buyers a chance to get relief.
The changes also aim to improve transparency and fairness in the real estate sector. Since unregistered projects often lack proper data, buyers may need to provide additional information when filing complaints,” said Akshat Pande, Managing Partner, Alpha Partners.
How the complaint process will work
If you are a buyer in an unregistered project, the process now looks like this:
First, you can approach UP-RERA and file a complaint. The authority will then examine whether the project should have been registered under the law.
If it finds that the developer violated registration norms, two things can happen:
The developer may face penalties or enforcement action.
Since UP RERA may not have complete information about unregistered projects or their promoters, the authority will obtain additional details, for issuing notices and adjudicating complaints, from complainants to process complaints. It will soon issue a separate order and develop a facility on the UP RERA portal, enabling affected allottees to file complaints through Form-M.
Your complaint will still be heard on merit
This is important because earlier, the lack of registration itself could block your case from even being considered.
Now, the system ensures that a builder’s non-compliance does not strip away your rights.
Why this is a big deal for homebuyers
This amendment addresses a long-standing problem in India’s real estate market.
Under RERA, most projects are legally required to register before selling units. But in reality, some developers:
Delayed registration
Avoided it altogether
Sold units through informal channels
Earlier, if you wanted to transfer a property—especially in tricky situations like inheritance—builders could charge arbitrary and often very high fees. There was little clarity or standardisation.
Now, the rules clearly define how much a developer can charge—and when.
If the owner passes away (inheritance cases)
If a property owner dies and the home is being transferred to a family member, the process is now much simpler and cheaper.
The builder can charge only up to ₹1,000 as a processing fee
That’s a big change because earlier:
Charges could run into thousands or even lakhs
Families had to negotiate or accept unclear costs
However, there is a process to follow:
-
You’ll need to submit documents like a death certificate -
A succession certificate -
No-objection certificates (NOCs) from other legal heirs -
This ensures the transfer is legally clean and dispute-free.
2. If you transfer to a non-family member
If the property is being transferred (sold or reassigned) to someone outside the family:
The builder can charge a maximum of ₹25,000
Again, this brings predictability.
Earlier:
Builders could charge a percentage of the property value
Or impose high “transfer charges” without clear rules
Now:
You know your cost upfront.
3. No need for a new agreement
This is a very practical change.
Earlier, in many cases:
Buyers had to sign a fresh sale agreement
This meant more paperwork, delays, and sometimes extra charges
Now:
No new agreement is required
Instead:
The builder will simply update the existing agreement
Changes will be recorded as an endorsement (update note)
This makes the process:
Faster
Simpler
Less expensive
“The capping of transfer charges and the move towards endorsement based documentation signal a broader intent to standardise transactional practices and curb discretionary impositions. From a market perspective, these measures are likely to drive greater discipline, enhance transparency, and incrementally align the sector with institutional grade compliance standards,” said Madhura Samant, Partner, Elarra Law Offices.
Source link
#Explained #Property #transfers #affordable #hasslefree
