In the bustling property market of Noida-Ghaziabad, a disturbing trend is putting homebuyers at risk. Many builders are handing over flats without completing the essential registration process. This shortcut, taken to avoid stamp duty, not only deprives the government of revenue but also impacts buyers who may face unexpected costs and legal complications down the line. Here’s what to know to protect yourself when buying property in this region.
Why Registration Matters: Avoid Ownership and Maintenance Issues
It’s crucial to understand that registration is more than just paperwork. Under the Uttar Pradesh Apartment Act and the Stamp Act of 1899, registering a property is a legal requirement. Yet, some builders are skipping this step, merely obtaining an Occupancy Certificate (OC) and Completion Certificate (CC) without registering the flats. This allows them to avoid stamp duty, but it leaves buyers without complete ownership rights and at risk of future issues with the property.
Potential Issues for Homebuyers Without Registration
- Ownership Rights: Without registration, the property remains partially under the builder’s control. This can complicate property ownership claims later, leaving buyers vulnerable.
- Higher Maintenance Costs: Builders often charge higher maintenance fees than Apartment Owners’ Associations (AOA) or Residents Welfare Associations (RWA) would. Without registration, the builder retains control and may set fees arbitrarily.
- Increased Electricity Bills: Builders often purchase subsidized power, reselling it to residents at a premium. Registered properties can receive electricity directly from providers, potentially lowering costs.
Government Action Against Unregistered Properties
The Uttar Pradesh government has recognized the problem and directed local authorities to identify and take action against builders bypassing registration. In Ghaziabad, the Ghaziabad Development Authority (GDA) has been asked to prepare a list of such builders. Notably, in 2018, the district administration filed cases against three developers who handed over flats without proper registration. This crackdown underscores the government’s commitment to safeguarding homebuyers’ interests and enforcing the law.
Checklist for Homebuyers: Essential Steps Before Signing
If you’re planning to buy a home in Noida-Ghaziabad, safeguard yourself by taking these precautions:
- Verify the Registration Process: Confirm that the builder has completed the legal registration. Ask for proof, as registration secures your ownership rights and minimizes future legal issues.
- Check for OC and CC: Both Occupancy and Completion Certificates indicate that the building complies with local regulations and is safe for occupancy. However, remember that these do not replace registration.
- Avoid Paying Extra Maintenance Fees: Ensure that the AOA or RWA, rather than the builder, will manage the property after registration. This usually leads to lower, more regulated fees.
- Confirm Direct Electricity Supply: Ask if the property has access to direct power supply arrangements rather than relying on a builder’s resale arrangement, which often inflates costs.
- Check Builder’s Track Record: Research the builder’s history with other projects to see if there are any complaints regarding registration or maintenance fees.
Don’t Risk Your Investment: Stay Informed
In the rush to own a home, it’s easy to overlook critical details like registration. However, this simple step can save you from future problems and protect your investment. So, when planning a home purchase in Noida or Ghaziabad, make sure you have all the documents you need to ensure smooth and secure ownership. Taking these extra steps now can help you avoid financial and legal troubles later.
