UP RERA caps the transferring of property to family members. There’s a reason to rejoice for homeowners in UP, as Uttar Pradesh RERA has capped the transfer fee builders can charge them. The major reform by UP RERA has restricted builders, who charge 1-2% of the actual amount of the property. The reform is effective from March 25, 2026.
Known as the 10th amendment to the General Regulations 2019, aims to stop high “transfer charges” often imposed during property resale. The three long-standing problems that are fixed by the UP RERA are unprotected buyers by the unregistered projects, arbitrary transfer charges, and unnecessary paperwork during property handovers.
As per the real estate law, the builders were asked to register under RERA before selling their units. However, the builders twisted the law and did not register themselves. The irony is that the buyers who bought the flat under unregistered projects and encountered any problem, like a delay in delivery, poor construction or outright fraud, cannot register their complaint with RERA because, as per the authority, it is outside their jurisdiction. This loophole has now been covered under the amendment bill.
Buyer Vs Builders
From now on, RERA will register the complaints of the buyers in unregistered projects. What has changed now is that once the complaint against the builder is filed by the buyer, RERA will first check the credibility of the builder, whether he has registered the project under RERA or not. In case he has not registered the project, the builder will face a penalty for violating the law, and the buyers’ complaints will be heard on a merit basis.
This means a builder’s decision to skip the registration can no longer be used to block the buyer’s case. The buyers now have a way to get justice even if they have unknowingly purchased the property under unregistered projects.
Transferring property was a costly affair
If the owner of the property passes away or the owner wants to transfer the property in the name of a family member, it is a very costly affair for them, as builders usually charge whatever they want. There is no cap on the amount, which is extremely expensive to transfer the property to the family or a third party. There were no fixed rules; families were asked to pay thousands and even lakhs of rupees as a transfer fee.
However, things have changed now as UP RERA has capped it to what builders charge in inheritance cases. For example, if a property is now being transferred to a family member, the builder can charge the maximum of INR1,000 as the processing fee. There are no hidden charges.
To complete the transfer, the family has to submit some documents, such as a death certificate, a succession certificate mentioning who the legal heirs are, and a no-objection certificate from other family members who have a claim in the property. These documents will protect everyone and ensure that there is no legal battle later for the owner.
Transferring property to third Party
Earlier, there was no cap on the transaction involved in transferring the property to a third party or someone who is a non-family member. For instance, when a buyer wanted to resell or transfer his under-construction property to a non-family member, builders charged a percentage of the property value as a transfer fee. It means on a 50 lakh flat, the transfer fee could range between 1 lakh and 2.5 lakh, which will go straight to the builder just for updating his records. There was no standard rate, and the buyer had no choice but to pay.
But after the RERA amendments, things have changed. The maximum a builder can now charge is INR 25,000 for transferring the property to a non-family member. It applies regardless of the property’s value.
A whole new agreement required during transfer
Earlier, when someone is transferring the property, the buyer has to sign a whole new agreement, which will mean additional charges. It could create delays and extra paperwork.
But under the new law, a fresh agreement is not required. The builder can update the existing agreement and record the change as an endorsement. This means a formal letter is added to the existing documents, which leads to less paperwork. The new owner’s name is registered without going through preparing the whole new document.
Conclusion
These changes made by the RERA have brought uniformity to the property transfer system. It is a much-needed transformation under the unrecognised market. This has helped the homebuyers in UP to make quick decisions, and save money while transferring the property in their name or the family member or to a third party.
Builders can no longer exploit them and cannot exploit the law by not registering their projects under RERA. The new rule standardised the process, capped the costs and gave buyers in previously unprotect situation a strong backing to legal recourse. For anyone buying property, inheriting or transferring it to a third party, these reforms have come as a boon for homebuyers in the property-stricken frauds.
