Noida Authority Mandates Tripartite Sale Agreement for Homebuyers
The Noida Authority board has introduced a new rule that makes it mandatory for builders and homebuyers to sign a tripartite sale agreement at the time of purchase. This change in the real estate transaction process aims to bring more transparency and accountability to the sector in Noida, which has been plagued by scandals and malpractices. CEO Lokesh M announced the decision after a board meeting chaired by Chief Secretary Manoj Kumar Singh. The new agreement will help protect homebuyers’ interests, boost the government’s stamp duty revenue, and ensure better oversight of project development.
Improved Transparency and Protection
Under the new rule, a tripartite agreement will be executed between the buyer, builder, and Noida Authority in the registry department once the homebuyer pays 10% of the property’s amount. This agreement will include the payment of 2% stamp duty upfront, with the remaining amount to be paid at the time of possession and final registry. The registered sale agreement will provide concrete proof that the buyer is the authentic owner of the property, preventing developers from reselling the same unit to multiple buyers or canceling sales on arbitrary grounds.
Preventing Fraudulent Transactions
In the past, there have been instances where developers fraudulently sold the same flat to multiple buyers, only coming to light when buyers tried to take possession. With the new tripartite agreement in place, developers will have to notify the Noida Authority each time a property is transferred, preventing such practices. Additionally, buyers will not be able to sell a unit back to a builder or another entity without paying stamp duty, ensuring the government receives the appropriate taxes.
Important Details in the Sale Agreement
The sale agreement, which acts as legal proof of the transaction, includes crucial information such as property specifications, total cost, payment terms, and possession dates. This rule change will bring a layer of transparency to benefit legitimate homebuyers while also preventing tax evasion. It will not allow builders to unilaterally change the sale agreement, ensuring the buyers’ protection and preventing fraudulent practices.
Government Efforts towards Real Estate Sector Reform
The Noida Authority’s decision to mandate tripartite sale agreements is part of the government’s ongoing efforts to reform the real estate sector. The state government had previously introduced a rehabilitation package for defaulting projects in Noida based on the recommendations of an expert committee led by bureaucrat Amitabh Kant. However, the uptake of this scheme has been mixed, with only a portion of the defaulting projects participating. With the new rule in place, it is expected that the real estate sector in Noida will experience greater transparency and accountability.
Allocation For IT/ITeS Firms
The Noida Authority board also discussed various other issues, such as outstanding dues from stakeholders. As part of their decisions, two plots measuring more than 14,000 sqm each in Sector 154 have been allocated to IT/ITeS firms. This move reflects efforts to promote the growth of the technology industry in the city.
In conclusion, the Noida Authority’s mandate for a tripartite sale agreement in real estate transactions marks a significant step towards improving transparency and protecting the interests of homebuyers. The agreement will help prevent fraudulent practices, ensure the government’s stamp duty revenue, and provide concrete proof of property ownership. Furthermore, the allocation of plots for IT/ITeS firms showcases the Authority’s commitment to fostering the growth of the technology industry. These efforts are expected to have a positive impact on the real estate sector in Noida and attract more trustworthy investments.