Families inheriting apartments in Uttar Pradesh are set to receive major financial relief after the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) capped transfer charges in succession-related cases at just Rs 1,000.

The move comes after multiple complaints from homebuyers and legal heirs that builders were demanding excessive charges to transfer apartments after the death of the original allottee. In several cases, developers reportedly charged fees on a per square foot basis, significantly increasing the burden on grieving families.

According to UP RERA chairman Sanjay Bhoosreddy, some builders were charging anywhere between Rs 200 and Rs 1,000 per square foot for ownership transfers. For larger apartments, this pushed transfer costs to as high as Rs 25 lakh to Rs 30 lakh.

To curb such practices, the regulator has amended Regulation 47 and introduced a uniform fee structure for inheritance-based transfers.

Under the revised rules, developers can charge only Rs 1,000 as a processing fee when transferring an apartment to immediate family members of the deceased allottee. This includes spouses, sons, and daughters.

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The legal heir will be required to submit supporting documents such as:

Death certificate of the original allottee
Succession certificate from a competent authority
No-objection certificates (NOCs) from other legal heirs

For transfers outside immediate blood relations, builders can charge a maximum processing fee of Rs 25,000.

UP RERA has also clarified that no fresh sale deed or lease agreement will be required in succession-based transfers. This is expected to reduce paperwork, legal formalities, and additional registration expenses for families.

The decision is significant because homes are often the largest financial asset owned by middle-class families. After the death of the primary owner, legal heirs frequently face administrative hurdles while trying to transfer ownership records.

Industry observers say the lack of clear rules earlier allowed many builders to treat inheritance transfers as fresh commercial transactions and impose arbitrary “administrative” or “transfer” charges.

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The regulator’s order now clearly separates succession-based ownership transfer from regular resale transactions. Real estate experts say inheritance transfers should not become a revenue-generating avenue for developers because the original buyer has already paid the full property value.

The move is especially important for apartment owners in gated communities and under-construction projects where builders continue to control allotment records, maintenance approvals, and property documentation.

Experts believe UP RERA’s decision could become a model for other states as complaints regarding excessive transfer charges remain common across India. Homebuyers often face high fees for succession transfers, name corrections, co-applicant additions, and allotment changes.

Meanwhile, UP RERA also highlighted strong growth in the state’s property market. Project registrations increased from 197 in 2023 to 308 in 2025, while investments in RERA-registered projects rose from Rs 28,411 crore to Rs 68,328 crore during the same period.

The regulator noted that growth is now spreading beyond NCR markets, with Lucknow emerging as a major real estate hub alongside Gautam Buddh Nagar.

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(WIth PTI inputs)

Published on: May 8, 2026 9:00 PM IST