This comes after several cases were reported where, in Uttar Pradesh, builders were charging between 25 and 30 lakh rupees for flat transfers. The UP RERA has now put a stop to this practice.
In Uttar Pradesh, the UP RERA has put a stop to the practice of demanding large sums of money from builders for transferring flats to heirs or outsiders. Now, the UP RERA has set a fee of just ₹1,000 for transferring a flat within blood relations. A fee of ₹5,000 will be charged for transferring a flat to another person. In over 19,000 such cases, RERA has refunded over ₹8,000 crore to allottees.
On Tuesday, as UP RERA celebrated its 10th anniversary, Chairman Sanjay Bhusreddy stated that upon the death of a flat allottee, builders used to charge heirs between ₹200 and ₹1,200 per square foot for the transfer, which could amount to ₹2.5 million to ₹3 million. Numerous complaints regarding this matter reached UP RERA. An investigation found that charging additional fees is illegal when the allottee has already paid the flat price.
UP RERA made important amendments
To address this, the UP RERA has made significant amendments to Regulation 47, which deals with administrative fees and standard fees. This regulation has been restructured to include new provisions regulating the fees charged by promoters in cases of succession or transfer of allotment.
Transfer flat to other than family for just Rs 25,000
UP RERA has given a big relief to home buyers by determining that if the allottee dies and the successor is a family member, the builder can charge a maximum processing fee of only Rs 1,000. In such cases, the successor will have to submit necessary documents like death certificate, succession certificate issued by the competent authority and no objection certificate from other legal heirs. If the flat is transferred in the name of an outsider other than the family, the promoter can charge a maximum processing fee of Rs 25,000.