New Noida registration rules while buying an apartment: What homebuyers should know
Expert Speaks by: Mr. Sunil Tyagi, Managing Partner at ZEUS Law
Published in https://www.hindustantimes.com
In NOIDA, the builder/ developer acquires rights to the land from NOIDA Authority by execution and registration of lease deed between NOIDA Authority and the builder/ developer for the grant of the lease hold rights of the land by NOIDA Authority to the builder/ developer. The builder/ developer after obtaining permissions & approvals and registration with Uttar Pradesh Real Estate Regulatory Authority launches sales/ bookings of the saleable areas of the project. Pursuant to which allotments are made in favour of buyers/ allottees. Upon payment of 10% (ten) percent of the total price of the property, agreement to sell/ builder buyer agreement requires registration and payment of stamp duty. Upon the completion of project, grant of occupation certificate and entire payment of total price of the property, a tripartite sub lease deed is entered between the builder, buyer, and NOIDA Authority for the transfer of title of unit in the favour buyer/allotee. NOIDA Authority has now mandated the requirement of the presentation of a registered agreement to sell/ builder buyer agreement at the time of registration of such tripartite sub-lease deed which shall ensure that NOIDA Authority is able to track the entire allotment cycle of a unit from the outset. This move would protect the buyer/allottee from duplicate allotment of the unit already allotted to it.
The registered agreement to sell or builder buyer agreement has dual benefits. On the one hand, it shall protect the rights of both parties during the interim period till the closure of the transaction and on the other hand, it shall increase the stamp duty collections for the state. This is similar to the practice followed in Mumbai and this requirement is in accordance with the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA). A registered agreement to sell or builder buyer agreement ensures that the parties are bound by a legally enforceable document in case of dispute between the parties it maybe used a valid evidence in the court of law. A registered agreement to sell/builder buyer agreement would also go a long way in discouraging the circulation of black money in the real estate sector.
