U.P. RERA Makes It Mandatory For Promoters To Prove Their Title of Project Land
Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has issued office order directing the promoters to ensure that they have legal title over the land on which they are applying for registration of the project. In case, the project land is not in the ownership of the promoter but in the ownership of some other person or persons, the promoter must have the consent of such landowner...
Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has issued office order directing the promoters to ensure that they have legal title over the land on which they are applying for registration of the project. In case, the project land is not in the ownership of the promoter but in the ownership of some other person or persons, the promoter must have the consent of such landowner for the development of the proposed project and must have a registered joint development agreement to this effect with the landowner. RERA has also directed the promoters to file an affidavit to the effect that the project land is free from encumbrances and to disclose the same if there is any encumbrance on the land of the project.
Important Points from the order
The promoters must have legal title over the land on which they propose the development of the real estate project.
If someone other than the promoter has title over the project land, the promoter must have the written consent of such person for the development of the project and a registered joint development agreement with him to this effect.
These orders became necessary because in the absence of the title over the project land or the consent of the landowner and a registered Joint Development Agreement (JDA) with him, it is not legally possible for the promoter to convey the title to the allottees along with their proportionate shares in the project land.
Lack of title of the promoter over the project land or absence of the consent of landowner with registered JDA, creates hurdles in deciding the registration application of the project as also in the transfer of title to the allottees.
Further, Sanjay Bhoosreddy Chairman U.P. RERA stated that the provisions of RERA are very clear that the promoter shall obtain the Completion Certificate/Occupancy Certificate of the project and transfer the title of the unit to the allottee by way of a registered sale deed or sub-lease deed, as the case may be. It was further clarified by him that it is established law that only a person having title over the land or property has right to legally transfer such land or property to a buyer. So, RERA had to issue these directions in order to ensure the protection of the rights of the consumers and to facilitate the conveyance deed in their favour without any legal impediments.
In Conclusion, U.P. RERA mandates that promoters must prove their ownership of the project land when applying for project registration.
Letter 3676 / UPRERA / 2023-24