Buying a home is often a dream for many, but concerns about builder fraud can turn that dream into a nightmare. If you’re planning to buy a flat in Noida, there’s good news on the horizon. The Noida Authority is preparing to introduce a new rule to protect home buyers from common malpractices by builders. This upcoming regulation will ensure that buyers get their ownership rights at the time of booking the flat, reducing the risk of fraud and delays in possession.
Under this new policy, which will soon be finalized, builders will no longer be able to sell the same flat to multiple buyers, a fraudulent practice that has caused losses to both the buyers and the government. The Noida Authority’s initiative aims to bring transparency, secure home buyers’ investments, and ensure timely possession of flats.
What’s Changing with the New Rule?
Currently, when a person books a flat, they don’t immediately get ownership rights. This creates room for fraudulent practices, where a builder might sell the same flat to multiple buyers without their knowledge. With the new regulation, builders will have to register the agreement to sell the flat immediately after a buyer makes the booking and pays 10% of the flat’s cost.
This registration, which will include payment of stamp duty based on the property’s value, gives the buyer legal ownership rights. Builders will not be able to transfer or sell the flat to anyone else after this registration, protecting the buyer from fraud.
Benefits for Home Buyers: Protection and Timely Possession
The biggest advantage of this new rule is that it protects home buyers from being cheated. The builder will be legally required to execute the sale agreement and register it with the Noida Authority as soon as the buyer makes the booking payment.
This move not only safeguards the buyer’s investment but also ensures that builders can no longer manipulate the system by selling the same flat multiple times. Additionally, since the agreement will be registered, the buyer will have legal proof of ownership from day one, reducing the uncertainty and fear of fraud.
Moreover, the new rule is expected to streamline the process of getting possession. The builders will be required to hand over possession of the flat on time. The authority will have updated records of all buyers, ensuring a transparent and fair process for everyone involved.
Stamp Duty and Registration Process: Simplified for Buyers
As per the new rule, once the buyer books a flat and pays 10% of the cost, the builder must execute the sale agreement and register the flat with the Noida Authority. The buyer will have to pay stamp duty based on the flat’s value during this registration process.
Once the construction is complete, the builder will also need to register the possession deed on a simple Rs. 100 stamp paper. This means that the buyers will not have to go through complicated legal processes to get possession once the flat is ready.
Government Gains: Increased Revenue, Reduced Builder Manipulation
This new rule will also benefit the government. One of the major issues faced under the current system is the loss of revenue when builders fail to register flats or pay transfer charges. By mandating immediate registration at the time of booking, the government will collect stamp duty and ensure that all property transactions are recorded properly.
The Noida Authority will also keep detailed records of all buyers, making it difficult for builders to manipulate the system. This step is expected to improve transparency in the real estate sector and reduce the number of fraud cases reported by home buyers.
What’s Next: Implementation of the New Rule in Noida and Greater Noida
The Infrastructure and Industrial Development Commissioner has sent a formal letter to the Noida, Greater Noida, and Yamuna Development Authorities regarding this new policy. The Yamuna Development Authority has already implemented the rule, and the Noida Authority is expected to finalize it in an upcoming board meeting.
Once the rule is approved, it will be implemented immediately, bringing much-needed relief to home buyers in Noida and Greater Noida. Homebuyers will no longer have to worry about being defrauded by builders, and the entire process of buying a flat will become much more secure and transparent.
With this new rule, Noida is set to become a safer and more transparent market for real estate buyers, allowing you to make your home-owning dreams come true without the fear of fraud or delays.
