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Homebuyers Must Receive Possession Offer and Completion Certificate Within Two Months, Says UP RERA

UP RERA has directed developers to issue a formal Offer of Possession within two months of obtaining the Completion or Occupancy Certificate, thereby strengthening homebuyer protection

Homebuyers Must Receive Possession Offer Within Two Months Photo: AI
Summary
  • Developers must issue possession offers within two months of approvals.

  • Final demand notices cannot replace a formal possession offer.

  • UP RERA aims to improve transparency and protect homebuyers.

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The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued fresh clarifications related to strengthening homebuyer rights in Uttar Pradesh. The regulatory body has issued a formal notice to developers, with clear guidelines on issuing an Offer of Possession within two months of obtaining the Completion Certificate (CC) or Occupancy Certificate (OC).

Under the Real Estate (Regulation and Development) Act, 2016, promoters are required to hand over possession and execute the conveyance deed within three months of receiving the Completion Certificate or Occupancy Certificate from any competent authority. However, UP RERA has tightened this timeline by asking developers to send a written Offer of Possession within two months of obtaining the approvals. The authority further highlighted that the offer must be communicated through the allottee’s registered email as well as by post. Developers have also been directed to display copies of CC or OC at their customer relationship management offices (CRM offices) for buyers to verify. The move is aimed at improving transparency and preventing developers from using ambiguous communications.

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What Else Has Been Clarified?

Another key clarification focuses on the misuse of Final Demand Notices. UP RERA has explicitly stated that such notices with the use of vague terminology will not be considered valid. Instead, the communication must explicitly state ‘Offer of Possession’ and clearly state that possession can be taken after the issuance of a completion certificate or occupancy certificate to the allottee. If a developer fails to comply with this, they will be violating the regulatory provision, which can invite action against them.

The Authority has also asked homebuyers to take physical occupancy of the property once a valid offer of possession is issued. They must also participate in the registration of the conveyance deed to complete the legal transfer of ownership.

As a way to reduce confusion related to large projects, UP RERA has further announced that when only a segment of the project receives a completion certificate, the approving authority must clearly specify the towers and the specific area covered under the certificate. This is to ensure that buyers know whether their specific unit is legally eligible for possession or not.

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UP RERA has also advised homebuyers to insist on receiving a formal offer of possession accompanied by the relevant documents, rather than relying solely on demand notices issued by developers. The authority said these measures are intended to improve transparency, reduce disputes and ensure that possession of homes takes place strictly in accordance with the law in order to protect buyers across Uttar Pradesh.

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