The Noida Authority has implemented a mandatory tripartite sale agreement for builders and homebuyers in new housing projects. This decision aims to increase transparency in real estate transactions by ensuring the buyer's identity is recorded at the time of the first payment, rather than at project completion. The agreement aligns with RERA guidelines and aims to prevent fraudulent sales and tax evasion. By formalizing the transaction process, the Authority seeks to protect homebuyers' interests while also boosting government revenue from stamp duty.
The Noida Authority has introduced a mandatory tripartite sale agreement between builders, homebuyers, and the Authority for new housing projects to boost transparency in real estate transactions. Announced after a board meeting led by Chief Secretary Manoj Kumar Singh, this agreement ensures the Authority is informed of the buyer's identity when the initial payment is made, rather than waiting until project completion, as previously done.
Aligned with Section 13 of RERA, the new system requires a formal sale agreement when the buyer pays 10% of the property price, along with a 2% stamp duty payment at the registry department. This government-backed agreement will officially document buyers in the registry, preventing developers from reselling units to multiple buyers or canceling sales without cause. It also addresses past instances of fraud, where units were sold multiple times or agreements canceled arbitrarily.
Currently, simple agreements on INR 100 stamp paper suffice, with the Noida Authority's involvement only beginning after occupancy and completion certificates are issued. However, the tripartite agreement, which covers key transaction details like specifications, costs, and possession timelines, will serve as initial legal proof, preventing unauthorized transactions such as resales back to builders without stamp duty.
Experts see this regulation as a much-needed layer of protection for legitimate buyers, reducing tax evasion and ensuring transactions are registered properly. Developers will now be required to notify the Authority for each transfer, and the new process prohibits unilateral modifications to the sale agreement by builders.
While the state government had introduced a rehabilitation package last year, only 29 out of 57 defaulting projects have joined. Between February 26 and October 18, 2024, the stamp department registered 5,925 flats in Greater Noida and 1,643 in Noida under the scheme. Additionally, the board has allocated two large plots in Sector 154 for IT/ITeS firms, shifting from their prior designation for data centers.
In conclusion, the tripartite sale agreement marks a significant shift in Noida's real estate landscape, promoting greater accountability and transparency. This regulation not only safeguards homebuyers against potential fraud but also enhances the government's ability to monitor transactions effectively. With these changes, the Noida Authority aims to restore confidence in the local real estate market, ensuring that legitimate buyers are protected and that the risks associated with dubious sales practices are minimized. This proactive approach could ultimately lead to a more stable and trustworthy housing market in the region.
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