Noida Implements Tripartite Sale Agreements for New Housing Projects to Boost Transparency
Noida News: The Noida Authority has introduced a mandate for tripartite sale agreements in all new housing projects, ensuring buyer identity is recorded from the initial payment stage to enhance transparency and prevent fraud.
NoidaHousing ProjectsTripartite Sale AgreementReraTransparencyReal Estate NewsOct 27, 2024
The new policy, which aligns with Section 13 of the Real Estate (Regulation and Development) Act (RERA), prohibits developers from accepting more than 10% of a property’s cost as an advance payment without a written agreement. CEO Lokesh M explained that once a buyer pays this initial amount, the tripartite agreement will be executed through the registry department. This process will involve the payment of 2% of the stamp duty upfront, with the remainder due upon possession and final registration.
This initiative is designed to provide buyers with formal proof of their purchase from the very first payment. It will prevent developers from reselling the same unit to multiple buyers or cancelling sales arbitrarily. Such fraudulent practices have caused significant distress to buyers in the past, often coming to light only when individuals attempted to take possession of their properties.
In the past, developers have been known to sell the same flat to multiple buyers, leading to legal and financial complications for the buyers. The new agreement structure will also close loopholes that allowed buyers to sell properties back to builders before taking possession, which could evade stamp duty fees. Currently, informal agreements are made on simple stamp paper, but the new requirement will involve the Noida Authority from the very beginning of the transaction process, ensuring enhanced transparency.
The Noida Authority, established to oversee the development and management of the Noida region, is committed to ensuring fair and transparent real estate practices. By implementing these measures, the authority aims to boost government stamp duty revenue and improve overall oversight of project development. This will not only protect homebuyers but also contribute to the stability and integrity of the real estate market in Noida.
Frequently Asked Questions
What is a tripartite sale agreement in Noida's new housing projects?
A tripartite sale agreement is a formal document that involves the buyer, the developer, and the Noida Authority. It ensures that the buyer's identity is recorded at the time of the initial payment, providing formal proof of the purchase and enhancing transparency.
Why is the Noida Authority implementing this new regulation?
The Noida Authority is implementing this regulation to increase transparency in the housing market, prevent fraudulent sales, protect homebuyers, and boost government stamp duty revenue.
What percentage of the property cost can developers accept as an advance payment under the new rule?
Developers can accept up to 10% of the property’s cost as an advance payment, but it must be accompanied by a written agreement and recorded with the Noida Authority.
How will the tripartite sale agreement protect homebuyers?
The tripartite sale agreement will provide formal proof of the purchase from the initial payment stage, preventing developers from reselling the same unit to multiple buyers or cancelling sales arbitrarily. It also ensures that the Noida Authority is involved from the start of the transaction process.
What are the benefits of the new agreement structure for the government?
The new agreement structure will help close loopholes that allowed buyers to sell properties back to builders before taking possession, evading stamp duty fees. This will boost government stamp duty revenue and improve oversight of project development.
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