by
Admin
February 03, 2026
Upholding Accountability and Transparency: UP RERA Issues Advisory on Registered Agreements for Homebuyers and Developers
Ensuring Accountability and Transparency
In a significant move towards ensuring transparency and accountability in the real estate sector, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has recently issued a crucial advisory for developers and homebuyers. The advisory emphasizes the necessity of executing a registered agreement for sale before developers can demand payments exceeding 10% of the unit cost. Similarly, homebuyers are cautioned against making payments beyond this threshold without the completion of a registered agreement.
Sanjay Bhoosreddy, Chairman of UP-RERA, highlighted the advisory's objective, emphasizing the need for accountability on the part of developers and transparency in their business relations. The advisory is aligned with Section 13 of the RERA Act, which explicitly prohibits promoters from accepting advance payments of more than 10% of the apartment, plot, or building's cost without first executing a registered agreement for sale.
According to the advisory, the registered agreement for sale must adhere to the model agreement laid down by the state government under the Rules of 2018. This agreement is required to encompass critical details related to the project's development, including construction specifics for buildings and apartments, as well as particulars of internal and external development works.
Furthermore, the agreement is mandated to outline the dates and payment procedures towards the unit's cost. Importantly, it should specify the date on which possession will be handed over to the allottee, providing a clear timeline for the completion of the project.
Chairman Bhoosreddy pointed out instances where promoters had received significant payments from allottees without the execution of a registered Agreement for Sale or Builder-Buyer Agreement (BBA). This advisory aims to rectify such practices, ensuring that both parties adhere to the legal framework laid out by the RERA Act.
The UP RERA's advisory marks a pivotal step in safeguarding the interests of homebuyers and maintaining the integrity of the real estate sector. By enforcing the requirement for a registered agreement for sale, the authority aims to create a transparent and accountable environment, fostering a mutually beneficial relationship between developers and homebuyers. As the real estate landscape continues to evolve, initiatives like these play a crucial role in building trust and confidence among stakeholders.