In a significant relief for homebuyers and their families, the Uttar Pradesh Real Estate Regulatory Authority has fixed a maximum processing fee of ₹1,000 for transferring flats to legal heirs after the death of the original allottee.
UP RERA Chairman Sanjay Bhoosreddy announced that developers and promoters will now be required to transfer the property to the deceased allottee’s spouse, son, or daughter upon payment of this nominal fee.
The move is aimed at preventing arbitrary and excessive charges that many builders were allegedly imposing on grieving families.
Why UP RERA Introduced the New Rule
According to UP RERA, several complaints were received from homebuyers regarding builders charging unreasonable transfer fees in succession cases.
In some instances:
Developers allegedly demanded ₹200 to ₹1,000 per square foot, pushing transfer charges to ₹25 lakh–₹30 lakh
The authority termed such practices unfair and exploitative, especially when the deceased allottee had already paid the full consideration for the flat.
To address this issue, UP RERA revised Regulation 47, which deals with administrative and standard charges under the Real Estate (Regulation and Development) Act, 2016.
Key Features of the Revised UP RERA Rule
Under the revised regulation:
Transfer to legal heirs within the family will attract a maximum fee of ₹1,000
Eligible family members include:
Spouse, son, daughter, and other blood relatives as per succession laws
To complete the transfer, legal heirs must submit:
Death certificate of the original allottee
Succession certificate issued by a competent authority
No-objection certificates (NOCs) from other legal heirs
This ensures the transfer process remains legally valid, transparent, and affordable.
Transfer Charges for Non-Family Members
UP RERA has also regulated transfers outside the family.
For transfers to third parties or non-family members:
The maximum processing fee has been capped at ₹25,000
This brings much-needed clarity and prevents builders from levying arbitrary transfer charges linked to property value or area.
No Fresh Sale Agreement Required
Another major relief is that:
No fresh sale deed or lease agreement will be executed during such transfers
Instead, developers will simply update their records and endorse the transfer, reducing paperwork, delays, and additional costs for buyers.
Major Relief for Homebuyers
The revised rules are expected to:
Protect families from exploitation during succession
Standardise transfer charges across projects
Reduce unnecessary litigation between buyers and developers
Increase transparency in real estate transactions
The move also strengthens consumer protection measures under RERA and reinforces UP RERA’s commitment to safeguarding buyer interests.
By capping transfer fees at ₹1,000 for legal heirs, UP RERA has taken a homebuyer-friendly step that addresses a long-standing grievance in the real estate sector.
The revised regulation ensures that property succession becomes simpler, transparent, and affordable, while also preventing developers from imposing excessive financial burdens on families during difficult times.
