Summary of this article
Transfer fee capped at Rs 1,000
Relief for legal heirs and families
Non-family transfer fee capped too
The Uttar Pradesh Real Estate Regulatory Authority has capped the transfer fee charged to legal heirs upon inheriting a flat at Rs 1,000. The regulator’s decision comes after multiple complaints were filed with the UP RERA, most of which mentioned how builders are charging arbitrary and additional amounts for flat transfers after the death of the original owner.
What Is UP RERA’s New Rule For Transfer Fees?
The fees have been capped as a part of the revision of Regulation 47 of the RERA, which is related to administrative and standard fees. Post the revision, builders and promoters can only charge a maximum fee of Rs 1,000 for transferring flats to their legal heirs within the family. However, homeowners must note that this clause only includes transfers to spouses and offspring of the deceased.
This move is expected to bring relief to thousands of families that previously faced burdens and challenges during the succession process for the property.
Why Did UP RERA Intervene?
According to a report by the news agency Press Trust of India, UP RERA Chairman Sanjay Bhoosreddy mentioned that the authority had been receiving several complaints from homebuyers regarding unfair transfer charges, which were being imposed by the developers. The report cited that in many cases, the authority received grievances mentioning how builders demanded transfer fees ranging from Rs 200 to Rs 1,000 per square foot for the transfer of ownership rights, pushing the total transfer fees to as high as Rs 25 lakh to Rs 30 lakh.
The regulator called out this practice as unjustified, especially when the original buyer has already paid for the full price of the flat. UP RERA has also clarified that a fresh sale deed or lease agreement will not be required in such transfers.
Which Documents Are Required For Transferring Flats
In order to successfully go through the transfer problem, legal heirs have to submit the following documents:
Death certificate of the original owner
Succession certificate
No-objection certificates (NOCs) from any other legal heirs, if applicable, are required.
Rules for Non-Family Transfers
Apart from the Rs 1000 cap, the UP RERA has also introduced a revised transfer fee on non-family transactions. In cases like this, builders can charge a maximum of Rs 25,000 for non-family transfers. These updates and reforms are aimed at reducing the hidden costs in the resale of flats, which make secondary housing transparent.
This new regulation ensures that the reforms made by the UP RERA body strengthen buyer confidence in the state’s real estate and resolve the long-standing issue faced by homeowners and legal heirs.
The regulator’s order is expected to aid apartment buyers in under-construction projects or gated societies where the builder updates the allotment records, maintenance approvals and documentation.
The decision is also expected to improve transparency by formalising a clear fee structure instead of individual builder policies which can be arbitrary in nature.
FAQ's
Q: What changes has UP RERA made recently?
UP RERA’s 10th amendment allows complaints in unregistered projects and caps transfer charges, improving transparency, accountability and relief for homebuyers
Q: Can a buyer file a complaint with UP-RERA for an unregistered project?
UP-RERA strengthens homebuyer protection by widening jurisdiction, including on unregistered projects, and capping transfer charges to curb developer malpractices
