Noida Authority Mandates Flat Registration After 10% Payment from Homebuyers
To protect homebuyers, the Noida Authority has introduced a new rule requiring real estate developers to register a flat after receiving 10% of the total payment. This mandates a tripartite agreement between the buyer, builder, and the Noida Authority.
Noida AuthorityFlat RegistrationReal EstateTripartite AgreementHomebuyersReal EstateOct 28, 2024
Flat Registration What Are the Latest Rules?
Under the existing rules, flat registration usually occurred after the project was completed. The buyer and developer would enter into an initial agreement on a Rs 100 stamp paper, and the Noida Authority would only get involved after the developer had obtained an occupancy certificate and completion certificate. However, this has now changed.
The latest guideline requires the flat to be registered as soon as the builder receives 10% of the flat price from the buyer. Additionally, a tripartite agreement must be signed at the same time. This ensures that both the buyer and developer are bound by a formal contract from the very beginning.
How Will This Help Homebuyers and Developers?
Real estate experts have welcomed this move, stating that it will promote transparency and accountability in the real estate sector.
Sahil Aggarwal, CBO of Nimbus Projects Limited, said, “The Noida Authority’s recent decision to require flat registration at the time of initial payment, rather than upon project completion, marks a significant and positive shift in the real estate sector. By mandating registration from the very start, this new policy promotes transparency and accountability from both developers and homebuyers. For developers, it increases the incentive to adhere to project timelines, while for buyers, it provides an additional layer of security and clarity over ownership.”
He added, “This policy change comes at an opportune moment, as Noida’s real estate market is experiencing heightened demand due to extensive infrastructure developments and the relocation of several multinational corporations to the area. The requirement for early registration will strengthen buyers’ confidence by providing legal reassurance right at the point of investment, reducing uncertainties surrounding possession timelines and project progress.”
Ravi Nirwal, Sales Director and Principal Partner at Square Yards, said, “The decision by the Noida Authority to initiate a sale agreement before more than 10% of the collection is a forward-looking measure to safeguard homebuyer interests. By ensuring that buyers are not required to commit a substantial portion of the property value without a formal sale agreement, this move bolsters buyer confidence.”
Furthermore, the public availability of these documents will strengthen transparency around property values, making it easier for buyers to make informed decisions in the market. Noida, being a pivotal residential hub within Delhi NCR, stands to benefit greatly from such initiatives.
on Noida Authority
The Noida Authority, formally known as the New Okhla Industrial Development Authority, is a statutory body responsible for the development and administration of Noida, a major city in Uttar Pradesh, India. It plays a crucial role in urban planning, infrastructure development, and real estate regulation, ensuring that the city remains a premier destination for residential and commercial investments.
Conclusion
The new flat registration rules by the Noida Authority are a significant step towards enhancing transparency and accountability in the real estate sector. This will not only protect homebuyers but also encourage developers to adhere to project timelines and standards, ultimately fostering a more structured and buyer-friendly market in Noida.
Frequently Asked Questions
When does the new flat registration rule take effect in Noida?
The new flat registration rule in Noida takes effect immediately after the builder receives 10% of the total payment from the buyer.
What is a tripartite agreement, and who are the parties involved?
A tripartite agreement is a legal contract involving three parties: the buyer, the builder, and the Noida Authority. It ensures that all parties are legally bound and accountable from the start of the transaction.
How does the new rule benefit homebuyers?
The new rule benefits homebuyers by providing legal reassurance and clarity over ownership, reducing uncertainties surrounding possession timelines and project progress.
What was the previous rule regarding flat registration?
Previously, flat registration used to take place at the time of project completion, after the developer obtained an occupancy certificate and completion certificate.
Who is the Noida Authority, and what is its role?
The Noida Authority, formally known as the New Okhla Industrial Development Authority, is a statutory body responsible for the development and administration of Noida. It plays a crucial role in urban planning, infrastructure development, and real estate regulation.
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