New Noida registration rules while buying an apartment: What homebuyers should know

How will the new rules help you as a flat owner, what is the legal standpoint and other important points explained

To protect home buyers purchasing new projects in Noida, the Noida Authority has now made it mandatory that a tripartite ‘sale agreement’ be signed between the buyer, builder, and Noida Authority as soon as the buyer pays 10% of the property cost to the developer.

The Noida Authority’s recent decision requires flat registration at the time of initial payment, rather than upon project completion. The tripartite agreement will now have to be registered soon after the builder receives the initial deposit of 10% from the buyer. Currently, buyers and builders enter into an initial agreement on a ₹100 stamp paper and the Authority enters the scene only after the developer has obtained an occupancy certificate and completion certificate for the project.
The Noida Authority, at its recent board meeting, decided that builders will now have to initiate registered agreements of sale, or the builder-buyer contract, for buyers who pay 10% of the total property price.

Experts say that the move is aimed at safeguarding flat buyers and enhancing revenue collection through stamp duty. This will also ensure that the authority is informed of property ownership transfer immediately after the property is purchased and there is transparency in the entire home buying process.The tripartite agreement will ensure that the buyers have legal proof of the transaction as soon as they make the 10% deposit. The legal document will include details of the property, the total cost, payment terms and the possession date.

It will ensure that developers do not sell the same housing unit multiple times or for that matter cancel the sale agreement unilaterally or on arbitrary grounds such as payment delays or missed timelines, experts said.

The Authority would now have to be informed about every sale and resale transaction and help prevent tax evasion. It will also prevent resale of properties without informing the Noida Authority being informed about it and prevent tax evasion. There have been instances of buyers selling the unit back to the builder or to a buyer without taking possession and without paying stamp duty. The same unit may have been sold again without the government receiving taxes, said experts.