Noida Authority has made a decision that will be in the interest of buyers purchasing new properties in Noida. It has made mandatory for the real estate developers to register a flat as soon they receive 10 per cent of the total payment. As per this order, a tripartite sale agreement has been mandated between the buyer, builder and the Noida Authority. This is mandatory for people buying in all new housing developments in Noida, Uttar Pradesh.
This comes as a sigh of relief for the buyers as till now, the flat was registered only after the completion of the project. The latest guidelines says that the tripartite agreement will be made as soon as the builder receives 10% of the flat price from the buyer.
Till now, the initial agreement between buyers and builders takes place on Rs 100 stamp paper and the Authority entered into scene only after the developer received occupancy certificate and completion certificate of the project.
How Will It Benefit The Buyers?
This new policy will curb the fraudulent property sales and safeguard the buyers. It will also ensure that the authority is aware of property ownership transfer. The tripartite agreement will also secure as a legal proof of the transaction and it will mention details of property, total cost, date and possession. In addition, this will also prevent the resale of the properties by the builders.
As per the experts, this move will ensure transparency and accountability in sale and purchase of the properties. News 18 quoted Sahil Aggarwal, CBO, Nimbus Projects Limited who called this guideline as a positive shift in the real estate sector. By mandating the flat registration at initial step, the policy promotes transparency and accountability from both the developers and buyers. He said, for buyers it provides an additional layer of security while for the developers in increases incentive to adhere to project timelines.
Reportedly, this change in policy comes at a time when real estate market of Noida is receiving heightened demands from buyers due to development of new infrastructure in Noida. Several new projects have been announced in New Noida plan which have started to attract people.
As per reports, the tripartite agreement is as per Section 13 of the Real Estate (Regulation and Development) Act (RERA), which prohibits builders from taking more than 10% of the property cost without a formal agreement. A 2% of the stamp duty will have to be paid initially, and the balance at the time of property possession and final registry.
