The Yamuna Expressway Industrial Development Authority (YEIDA) has stipulated that builder-buyer agreements for group housing projects will only be deemed valid if stamp duty is paid. This requirement, already included in UP-RERA regulations, provides buyers with valid proof of flat registration and stamp duty payment at the time of booking, safeguarding them from potential complications in transactions with developers. This proposal was approved during a YEIDA board meeting last week and will apply to all new group housing projects in Yamuna City.
Builders will now need to reserve flats for new buyers based on a registered builder-buyer agreement (BBA). Buyers will be responsible for the stamp duty costs for flat registration. Although this may increase the initial financial burden, it strengthens buyers' legal position, preventing builders from making arbitrary changes later.
Earlier this month, UP Chief Secretary Manoj Kumar Singh, who also serves as the Industrial Development Commissioner, instructed the three industrial bodies—Noida Authority, GNIDA, and YEIDA—to implement this important measure. This initiative aims to tackle the problem of realtors selling properties to multiple buyers through unregistered agreements, which often results in lengthy litigation and distress for property consumers. Furthermore, the state government seeks to reduce revenue losses linked to unregistered agreements.
According to YEIDA CEO Arun Vir Singh, there are frequent complaints about buyer registrations being canceled due to minor delays in payment. Additionally, many buyers report that after booking a flat elsewhere, they receive keys to a different flat from the builder once payment is made. To address these issues, the authority has decided to enforce the new rule.
Currently, buyers pay 10% of the total property cost and sign an agreement with the builder on Rs 100 stamp paper, which outlines property specifications, delivery dates, and payment plans. Under the new process, buyers will now be required to pay stamp duty on the 10% property cost at the time of signing the agreement at the sub-registrar's office.
In conclusion, these new regulations enhance buyer protection and promote transparency in the real estate market. By ensuring valid agreements and addressing past issues, the initiative fosters trust between buyers and developers, ultimately benefiting the housing landscape in Uttar Pradesh.
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