UPRERA
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UPRERA i.e. the Uttar Pradesh Real Estate Regulatory Act has taken multiple initiatives to resolve the issues of homebuyers under its various benches. But, are the homebuyers really at an advantage due to the rules framed by this regulatory authority? Well, this blog post will answer all the unanswered queried. So, scroll down the post and read more.

  1. Dilution of Rules

The Uttar Pradesh Real Estate Regulatory Authority 2016 has reframed a couple of rules and they are most likely to leave an adverse effect on the homebuyers particularly in Noida, Greater Noida and Ghaziabad. This is an important reason of concern for the homebuyers as the authority is taking frequent actions against the developer(s) to offer major relaxation to the investors who make investments in the Indian real estate sector.

  1. Expert Speak

The real estate experts feel that UPRERA’s hasty decisions to take over the developers’ project who fail to deliver the same in the promised time are likely to unbalance the supply chain in the realty sector. In fact, holding developers accountable to complete projects well in time is a good option instead as it also keeps the property prices static while balancing the demand and supply chain in the realty sector.

The homebuyers, on the other hand, will be at peace due to two reasons mainly. Firstly because they will be assured to get the unit in promised duration and secondly because the authority can punish the developer(s) for non-completion of the same in the desired time.

  1. Registration Issue

Unlike the Union Government’s guideline that every developer/promoter/broker working on the plot measuring more than 500 sq.meter is required to be registered under the Real Estate Regulatory Act 2016, the UPRERA does not have a clear guideline on the same.

Also, the homebuyers also believe that such inaccurate policy gives developers an escape route when not performing as per the expectations.

The next point of concern is an unclear picture of what procedure will be applied to complete the project in case of cancellation or lapse in the developer(s) registration under the RERA authority. As the Union Government guidelines rule that the association of allottees or a competent authority is responsible to complete the remaining work in the project.

Also Read : Top Initiatives launched by UPRERA to revive Noida, Greater Noida property market

  1. Completion Certificate Issue

UPRERA has given the status of ongoing projects to multiple under-construction ones without issuing a Completion Certificate i.e. CC. However, the projects fulfilling criteria like

  • Handing over of common areas to the Resident Welfare Association (RWA)
  • Services that have been given to the local body authority
  • Completion of development work along with the execution of sale/lease deed of 60 percent of the units

are rated under completed projects. Also, an inaccurate guideline on the same by UPRERA will leave many projects out of the RERA Act.

  1. Sale on the grounds of basic Carpet Area

UPRERA here also diluted the rules framed by the Union Government as it states that an apartment size can be disclosed according to the carpet area irrespective of the fact that the sales earlier were made on the grounds of Built-up or Super built-up area.

Whereas

The Union Government says that all the Projects should be sold on the grounds of carpet area compulsorily.

  1. Unclear Tiles

The promoters are required to submit a copy of the legal title report along with the details of encumbrance. But, this does not contain the details like who will offer compensation to the allottees in case of loss because of any unclear land title. This is the reason to worry for the homebuyers.

  1. Structural Defects Issue

Here also UPRERA differs from the guideline framed by the Union Government and do not hold developer(s) accountable for a structural defect. Whereas, the central RERA Act 2016 hold developer(s) liable to fix any and every structural damage caused in the building till the completion of the first five years from the possession date.