In a move to safeguard homebuyers in Noida, the Noida Authority has implemented a new regulation requiring a tripartite “sale agreement” between the buyer, builder, and Noida Authority. This agreement must be registered once the buyer pays 10% of the property’s cost, providing an added layer of transparency and security.
Key Change: Registration Upon Initial Payment
Under the new rule, the flat registration will now be initiated at the time of the first payment, instead of waiting until the project’s completion. Once the developer receives the 10% deposit from the buyer, a formal tripartite agreement is to be signed and registered. Previously, buyers would enter into a preliminary agreement with builders on a ₹100 stamp paper, and the Noida Authority would become involved only after project completion certificates were obtained.
Benefits for Homebuyers and Transparency in Transactions
At a recent board meeting, the Noida Authority emphasized the benefits of this registered agreement. Builders are now required to initiate the sale agreement with any buyer who has paid 10% of the property price, creating a legally binding document that includes all relevant details such as property information, total cost, payment terms, and possession date. Experts say this move will protect buyers from potential fraud and ensure proper revenue collection through stamp duty.
The tripartite agreement, compliant with Section 13 of the Real Estate (Regulation and Development) Act (RERA), aims to provide buyers with immediate legal proof of ownership, preventing developers from unilaterally cancelling agreements or reselling units without notifying the authority. Additionally, it restricts builders from accepting more than 10% of the property cost without a formal agreement. Buyers will initially pay 2% of the stamp duty, with the balance due upon possession.
Addressing Issues of Tax Evasion and Unauthorized Sales
The rule requires the Noida Authority to be notified of each sale and resale transaction, aiming to reduce instances of tax evasion and unauthorized sales. Previously, some buyers sold units back to the builder or a new buyer without possession and without paying stamp duty, often resulting in the government missing out on tax revenue. This new rule ensures that such transactions are now recorded, creating a clearer and more accountable home-buying process in Noida.