The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has recently made a significant recommendation to the state government regarding the delinking of registries from land dues. This proposal aims to streamline the real estate sector and address the challenges faced by homebuyers in Uttar Pradesh.
Under the current system, homebuyers are required to clear all land dues before the property’s registry can be completed. Land dues include various charges, such as external development charges, lease rent, and other statutory payments. However, this requirement often poses a significant burden on homebuyers, leading to delays in registry and unnecessary financial strain.
Recognizing these challenges, UP-RERA has suggested decoupling the registry process from land dues. The authority proposes that the payment of land dues should not be a prerequisite for completing property registration. Instead, it suggests that homebuyers should be allowed to register their properties first and settle the land dues within a specified period after the registry.
This recommendation has several potential benefits. Firstly, it will expedite the registration process, enabling homebuyers to take possession of their properties without unnecessary delays. This will enhance the ease of doing business in the real estate sector and boost consumer confidence.
Secondly, delinking registries from land dues will provide financial relief to homebuyers. They can utilize their resources for immediate priorities such as interior work, moving, or any other expenses associated with their new property. The flexibility of paying land dues after registry will also prevent situations where homebuyers are burdened with multiple financial obligations simultaneously.
Furthermore, this proposal aligns with the government’s efforts to promote affordable housing and increase homeownership. By reducing the financial strain on homebuyers, more individuals and families will be encouraged to invest in real estate, thereby stimulating the housing market and overall economic growth.
To implement this recommendation effectively, the UP-RERA suggests that appropriate safeguards should be put in place. For instance, homebuyers should be required to provide a bank guarantee or an equivalent financial instrument to ensure the settlement of land dues within the stipulated period. This will safeguard the interests of developers and prevent any potential misuse of the system.
In conclusion, the proposal to delink registries from land dues, put forward by UP-RERA to the Uttar Pradesh state government, has the potential to revolutionize the real estate sector in the state. It will ease the burden on homebuyers, expedite the registration process, and contribute to the growth of the housing market. By considering and implementing this recommendation, the state government can foster a more favorable environment for both homebuyers and developers alike.