The Noida Authority has made an important change to protect homebuyers. It now requires a tripartite sale agreement to be signed between the buyer, developer, and the Noida Authority for sale of apartments in under-construction projects. This agreement must be registered as soon as the buyer pays 10% of the property cost to the developer.
Let’s look at what this new rule means and how it benefits buyers.
How the Registered Sale Will Work for Apartment Sale?
The tripartite sale agreement acts as a preliminary registry before the final registry takes place. It will be aligned with Section 13 of the RERA Act, which states that a promoter cannot collect more than 10% of the property’s value as an advance or application fee without signing a written agreement for sale.
A tripartite agreement between the buyer, builder, and Noida Authority will be executed in the registry department once the homebuyer pays 10% of the property’s amount. During this agreement, 2% of the stamp duty will be paid upfront, with the remaining amount to be paid at the time of possession and final registry.
This government-certified agreement will provide:
- Proof of ownership right from the first payment, with the buyer’s name recorded in the stamp and registry department.
- Prevention of fraudulent sales: Developers will no longer be able to resell the same unit to multiple buyers or cancel sales arbitrarily due to missed payment deadlines or delays in the project.
Industry experts highlight that in the past, there have been cases where developers sold the same unit to multiple buyers. Buyers only discovered the fraud when they tried to take possession. The new rule will eliminate such risks and increase transparency in property transactions.
Previously, buyers and builders would sign a basic agreement on a ₹100 stamp paper when the property was booked. The Noida Authority only got involved after the project was finished and the builder obtained certificates, like the Occupancy Certificate (OC) and Completion Certificate (CC).
With the new rule, buyers, builders, and the Noida Authority must sign a legal agreement right after the buyer pays 10% of the property price. This early registration ensures that the property ownership details are recorded from the beginning.
How Will This Help Buyers?
1. Early Legal Protection
- Buyers will have official proof of ownership early in the process.
- The agreement will clearly list details like the property’s price, payment schedule, and possession date.
2. Prevents Fraud and Disputes
- Involving the Noida Authority ensures that property sales are transparent and properly recorded.
- This will help prevent fraudulent sales and ownership conflicts.
3. Faster Stamp Duty Collection
- Stamp duty will now be collected early in the process, which will also boost the Noida Authority’s revenue.
- Buyers won’t have to wait until project completion to register their property, which reduces delays.
Impact on Developers & Investors
Builders will need to register the sale agreement soon after receiving 10% of the payment. While this adds some paperwork, it builds trust with buyers by making the process more transparent. Builders who follow these rules may attract more buyers, as this system ensures fair dealings.
The obvious losers in this situation are investors who believed in flipping property by investing in under-construction projects at an early stage. It would make such investments difficult when investors are not able to visit the local registry offices.
A Positive Step for Noida’s Real Estate Market
This new rule ensures buyer safety and transparency in property transactions. It minimizes the risk of fraud, guarantees legal ownership, and holds builders accountable to their promises. With greater confidence in the market, more people may feel encouraged to invest in Noida real estate.
Conclusion
The tripartite sale agreement is a smart step to protect homebuyers and improve the real estate process in Noida. It offers buyers peace of mind by making the property purchase formal from the start.
If you are planning to invest in Noida’s real estate market, this is a great time. For expert help with your property search, reach out to Proprex Realty Pvt. Ltd. today!
