UP-RERA mandates promoters to demonstrate legal title for project land

28 Mar 2024 CW Team

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued a directive to the promoters, instructing them to ensure that they possess legal title over the land on which they are seeking registration for their project.

According to the directive, if the land for the project is not owned by the promoter but by another individual or individuals, the promoter must obtain consent from the landowner for the development of the proposed project. Moreover, the promoter must have a registered joint development agreement with the landowner for this purpose.

UP-RERA has further instructed the promoters to submit an affidavit confirming that the project land is unencumbered. They must also disclose any encumbrances on the land if such exist.

Sanjay Bhoosreddy, chairman of UP-RERA, stated that RERA's provisions are explicit in requiring promoters to obtain the Completion Certificate (C.C.)/Occupancy Certificate (O.C.) for the project and to transfer the title of the unit to the allottee through a registered sale deed or sub-lease deed, as applicable.

These directives were deemed necessary due to the inability of promoters to legally transfer title to allottees, along with their respective shares in the project land, in the absence of legal title over the project land, consent from the landowner, and a registered joint development agreement (JDA) with the landowner.

This situation also creates challenges for UP-RERA in processing project registration applications if the promoter lacks legal title to the land or does not possess written consent from the landowner, along with a registered joint development agreement.

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