Mumbai: The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has introduced an online complaint mechanism allowing homebuyers to report illegal transfer charges imposed by developers and promoters, a move that is being viewed as a significant step towards improving transparency and consumer protection in the real estate sector.
The development comes after amendments to Regulation 47(c), which clarify the process for property transfers involving assignees and successors-in-interest. Under the revised regulation, promoters are no longer permitted to execute a fresh Agreement for Sale or Lease during transfer cases. Instead, developers must endorse the existing agreement while updating official records accordingly.
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The amendment also defines the upper limit for processing charges applicable during property transfer transactions. In cases involving family transfers or inheritance, promoters cannot charge more than Rs 1,000 as a processing fee. For transfers involving non-family members, the maximum permissible fee has been capped at Rs 25,000.
To strengthen enforcement and provide direct access to grievance redressal, UP-RERA has enabled digital complaint filing through Form-M on its official portal. Homebuyers facing unlawful or excessive transfer demands from developers can now submit complaints online.
The move has received backing from legal experts and real estate industry stakeholders, many of whom believe the digital complaint mechanism addresses a long-standing concern among property buyers.
“UP-RERA’s move to enable online complaints against illegal transfer charges is a significant step towards greater transparency and consumer protection in real estate transactions. Arbitrary transfer fees, especially in resale and inheritance cases, have long been a concern for homebuyers. The digital mechanism will improve accessibility, accountability, and buyer confidence while promoting fair practices across the sector,” said Venket Rao, Founder, Intygrat Law Offices.
According to industry participants, arbitrary transfer charges have often created financial pressure on families involved in resale transactions, inheritance settlements, and ownership transfers.
Ravi Kant, Co-founder, Elegance Enterprises & Elegance Infra, said, “Illegal transfer charges often created unnecessary financial stress for families during property transfers and inheritance cases. This initiative gives homebuyers a proper platform to raise grievances and will help make the real estate ecosystem more transparent, consumer-friendly, and accountable.”
Stakeholders also believe the amendment could improve trust between developers and homebuyers by standardising the transfer process and limiting excessive financial demands.
“UP-RERA’s decision to allow online complaints against illegal transfer charges is a positive and consumer-centric step for the real estate sector. The move will enhance transparency, accountability, and buyer confidence by offering homebuyers a more accessible grievance redressal mechanism,” said Pavan Gupta, Founder, Farmland Bazar.
Industry observers noted that the digitisation of complaints could help reduce procedural delays while ensuring faster and more structured grievance handling for affected homebuyers. The amendment is also expected to bring greater accountability within the property transfer ecosystem, particularly in cases related to resale transactions and inheritance-based ownership transfers.
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As regulatory authorities continue to focus on consumer protection and transparency in the housing market, the latest UP-RERA initiative is being viewed as an important policy intervention aimed at streamlining property transfer procedures and reducing disputes linked to illegal transfer charges.
