Noida makes flat registration mandatory for home buyers amid real estate scams

Noida makes flat registration mandatory for home buyers amid real estate scams

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Noida: It will be mandatory for builders and home buyers to sign a tripartite ‘sale agreement’ at the time of purchase in all new residential projects in the city. Noida Authority The board on Saturday made a fundamental change in the way real estate transactions are conducted in the city, through which it will be known to whom a flat has been sold at the time the first payment is made and not at the time of completion, as it is now.

Decision, announced by CEO Lokesh M After the board meeting chaired by the Chief Secretary Manoj Kumar Singh This, it concluded, would remove opacity at the transaction level and help prevent dubious sales in a city whose real estate sector is one of the most troubled in the country and marred by some of the most high-profile malpractices. This will protect the interests of home buyers, boost the government’s stamp duty revenue and ensure better monitoring of project development, officials said.

The ‘sale agreement’, actually a registry before the actual registration, will be prepared in accordance with Section 13 of RERA, which states that a promoter may not make any advance payment of more than 10% of the cost of an apartment, plot or building. Cannot be accepted as. Or application fee without written agreement for sale.

“In light of this, a decision has been taken that a tripartite agreement between the buyer, the builder and the Noida Authority will be executed at the registry department after the home buyer pays 10% of the property amount,” Lokesh M said. During this agreement, 2% of stamp duty will be paid in advance, the remaining amount will be paid at the time of possession and final registration.

While the government-attested agreement will give the buyers concrete evidence at the time of first payment that they are bona fide buyers of the property and their name will go on the records of the Tamp and Registry department, it will prevent developers from re-selling the same unit to multiple buyers. Or canceling sales on arbitrary grounds such as delayed payments, missed project deadlines, industry watchers said. In the past, there have been cases where developers fraudulently sold the same flat to multiple buyers, with the issue coming to light only when the buyers tried to take possession.

Under the radar transactions can also go the other way – a buyer can sell a unit back to the builder or to another entity before taking possession without paying stamp duty, thereby selling the same unit to the government without receiving tax. Permission is granted to resell. An official said, it will not be possible to do this after the tripartite agreement is signed.

Sales agreements are still signed once the deal is done, but they are between the builder and the buyer. Now the buyer and the developer usually make an initial agreement on a stamp paper of Rs 100. The government’s involvement in the registration process, through the Noida Authority, begins only after the developer receives the Occupancy Certificate (OC) and Completion Certificate (CC) for the property. A ‘sale agreement’, apart from being the legal proof of the property purchase transaction, contains important details such as property specifications, total cost, payment terms and date of possession.

PPS Nagar, a lawyer specializing in real estate, said the new rule will bring a layer of transparency that will benefit legitimate buyers the most while also preventing tax evasion. “There are instances where developers would allot the same flat to multiple buyers, especially if the initial buyer withdrew his investment for some reason. Without investigation, this practice went unnoticed. Under the new rule, developers Every Noida authority has to be informed at the time the property is transferred,” he said.

“The move is aimed at benefiting buyers as builders will not be able to change the sale agreement unilaterally,” said BS Verma, assistant inspector general (stamp and registry).

The state government had launched a rehabilitation package last year based on the recommendations of an expert committee led by bureaucrat Amitabh Kant. But it has created a mixed situation and 29 out of 57 defaulting projects in Noida have signed up for it. Between February 26 and October 18 this year, the stamp department was able to register only 5,925 flats in Greater Noida and 1,643 flats in Noida under this scheme. The Board discussed additional issues, such as the amount of dues not yet recovered from various stakeholders. It was decided to allot two plots of more than 14,000 square meters in Sector 154 to IT/ITES firms. Earlier, these plots were planned for data centres.

  • Published on October 27, 2024 at 12:00 pm IST

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