UP-Rera Guidelines for Builder-Buyer Settlements: Ensuring Transparency and Compliance
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The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has introduced a model format for Offer of Possession letters to enhance transparency in the home buying process. This initiative aims to standardize the communication between developers and homebuyers, ensuring clarity and fairness. However, the move has sparked mixed reactions from various stakeholders.

Understanding the Offer of Possession

An Offer of Possession letter is a formal document from developers to homebuyers, indicating that their apartment is ready for handover. According to Kinjal Champaneria, Partner at Solomon & Co., this letter signifies the fulfillment of the developer’s obligations and confirms the readiness of the flat for possession.

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Addressing Loopholes

UP RERA introduced the model format to curb the arbitrariness in possession letters. Some developers previously used these letters to alter agreed terms in sale agreements and included final payment schedules, causing confusion and legal disputes. The new format mandates obtaining an Occupation Certificate (OC) or Completion Certificate (CC) before issuing possession letters, aiming to prevent such issues.

Benefits for Homebuyers

Experts believe the model letter will benefit homebuyers by removing ambiguities and ensuring developers fulfill their obligations before handing over possession. By clearly outlining any pending construction work and its completion timeline, the new format offers better transparency and reduces the chances of homebuyers receiving incomplete properties.

Concerns and Criticisms

Despite its benefits, some experts argue that the model format may add complexity. Abhay Upadhyay, President of the Forum for People’s Collective Efforts, suggests that if developers don’t comply with existing laws, they might not adhere to this new format either. He also raises concerns about potential delays in possession if developers send demand notices separately from possession letters, as required by the new notification.

Additional Areas for Improvement

Experts suggest that RERA should also address other areas to further protect homebuyers. Recommendations include creating model formats for other crucial documents, such as sale agreements and occupancy certificates, and simplifying the dispute resolution process. Time-bound provisions for resolving complaints and stricter penalties for non-compliance are also necessary to safeguard homebuyers’ interests.


UP RERA’s model format for possession letters is a step towards enhancing transparency in the real estate sector. While it aims to protect homebuyers and ensure fairness, its success will depend on effective implementation and compliance by developers. Addressing additional concerns and simplifying processes can further strengthen the regulatory framework and boost homebuyer confidence.

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