Amidst the festivities, UP housing department concluded Uttar Pradesh Real Estate Rules 2016 last week. By its very nature, it will override Centre’s notified Real estate bill. Please note that while the rules are drafted and notified, some sections governing refund and deadlines are yet to be notified. Here we bring some key features of these rules for ample clarity to real estate buyers in the region.
Applicability of the rule: Rule is applicable to all projects except for:
- Projects with completion certificate received or
- Where maintenance is handed over to the RWA or
- Where 100% development work is complete and registry for 60% of project has been completed or
- Where 100% development work is complete and completion certificate is applied for with all prerequisite documents.
Some key findings:
- While registering with regulatory body, Builder needs to provide a declaration including carpet area irrespective of the basis on which agreement with buyer was initially entered into.
- Rule specifically talks about declaring number of open parking in the project. Thereby implying that open parking can be legally sold provided it is marked as limited use area under Form B as part of Form A (these forms are different from UP apartment act’s forms but a lot of it is derived from the act).
- Builder needs to put its profile details and all key project declarations on its website (details given under Chapter IV on page 5/6 of rules).
- Builder also needs to put financials and regular construction updates on its website. The construction updates shall be uploaded before end of each quarter.
- Real estate agents also need to register with the regulatory body.
- The refund (compensation and interest) to the buyers as specified under the governing section of the act shall be given within 45 days from when it is due.
- The judgment of regulatory body will be akin to a civil court and all authorities including police shall be bound for enforcement.
- Format for appeal/complaint is given in form L and M on page 32/34 of the rules.
- The application for president and members of the regulatory body have already been invited by Housing department on 28th October.
Cons compared to Centre’s act:
It allows for compounding of imprisonment by paying compensation to the limit of 10% of project cost. Hence, the builder may be absolved of jail imprisonment if it can compensate for the same.
- Section 3 of the act is awaiting notification. The notification is expected to coincide with the first chairing committee meeting of the regulatory body and will provide guidelines on the below.
- The guidelines on refund – Amount of interest and compensation are awaited. If it goes by union territories notification on this, interest on delay would be approximately 10.9%.
- Upon notification, the rules related to the period under which builders need to register themselves with regulatory body will also be known.
The notified UP Real estate rules 2016 is attached for your reference.