The real estate regulatory authority of Uttar Pradesh, known as UP-RERA, has published updated rules consolidating all norms related to the state's real estate sector. These changes include 12 amendments, effective by July 13, 2026, and apply to all market participants: developers, homebuyers, and real estate agents.
The new provisions significantly clarify procedures related to the use of funds received from buyers, maintenance of project bank accounts, transfer of properties, registration of plots or apartments, agent activities, and project advertising.
Developers or promoters are now required to make public information about the project's architect, engineer, and certified accountant available. Furthermore, providing a customer relations manager and a contact or toll-free number for buyers is mandatory. Project progress, known as QPR, must be presented with corresponding expert certificates every three months, ensuring buyers receive accurate information on the work's progress.
Every developer must create a profile on the UP-RERA website and regularly update it with any changes in the registration of a new project or company information. This profile must contain up-to-date details about the company's directors, partners, or trustees, as well as financial information and tax returns.
Developers are obligated to provide four separate email addresses: one for project registration, a second for administrative tasks, a third for handling customer complaints, a fourth for distribution, and a fifth for communication with real estate agents. This minimizes the chance that important information or a complaint will go to the wrong address.
The developer must use the same project name specified in the approved plans so that buyers can easily verify that the booking or sale relates specifically to that approved project.
When transferring an apartment or house to the buyer, the developer must provide an 'Offer of Possession' in the format stipulated by UP-RERA. This helps reduce disputes and financial disagreements that arise at the time of property handover.
UP-RERA has provided significant support to buyers who purchased homes in projects not registered with the authority. Such buyers can now also file online complaints on the UP-RERA website and have the right to demand similar protection as buyers of registered projects, although they will need to provide additional information about the project and developer along with the complaint.
If a developer or agent fails to submit the required reports on time, they must pay a prescribed fee. A fine of 15,000 rupees is imposed for late submission of QPR, 25,000 rupees for delayed submission of the annual audit report, and 10,000 rupees for late submission of the quarterly real estate agent report.
If an apartment or plot is transferred to a family member after the buyer's death, only 1,000 rupees is charged. However, if the transfer is made to a third party, the maximum fee will be 25,000 rupees, eliminating the possibility of arbitrary charges for transfer from buyers.
The developer is now required to open three separate bank accounts for the project: a Collection Account, a Separate Account, and a Transaction Account. 70 percent of the funds received in the collection account must be transferred to the separate account, and 30 percent to the transaction account. The loan amount associated with the project must only be deposited into the separate account, and withdrawals from this account must be made according to established rules. These accounts will undergo an audit every fiscal year, and the reports must be posted on the UP-RERA website. Additionally, the developer is prohibited from accepting payments from buyers in cash.
In promotional brochures and advertisements, simply making attractive claims is no longer sufficient. Developers and agents are required to prominently display the UP-RERA registration number, the UP-RERA website, a QR code, the project collection account information, the project launch date, and the agent's registration number so that buyers can verify necessary project information even before purchasing.
A training certificate is now required for the mandatory registration and renewal of real estate agents' activities. Agents must maintain their records and documents in order and submit a report of their operations on the UP-RERA website every three months.
Developers cannot arbitrarily manage service maintenance funds. The rules have also been clarified regarding the amount of IFMS collected from buyers for maintenance. This amount will be determined based on the size of the project and maintenance needs, and the developer must keep it in a separate bank account. When responsibility for common areas is transferred to the residents' association, the entire IFMS amount...
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