The Noida Authority has introduced a new regulation that mandates all new housing projects in the city to involve a tripartite sale agreement between the property buyers, developers, and the developmental body. This new rule aims to ensure that the identity of the property buyer is formally recorded after making the initial payment, rather than waiting until the completion of the project. The decision to implement this rule was made public by Lokesh M, the Chief Executive Officer of the Noida Authority, following a meeting of the board which was chaired by Chief Secretary Manoj Kumar Singh.
The primary intention behind the tripartite agreement is to protect the interests of the property buyers. It also aims to increase the revenue generated from stamp duty for the state government and to improve the overall supervision and regulation of housing projects in the city. Under this new system, the agreement will be executed immediately after the property buyer makes their initial payment. The agreement will be processed at the Registry department with a two percent stamp duty fee upfront, with the remaining stamp duty to be paid upon possession and final registration of the property.
This new rule is being enforced in response to several incidents in which developers fraudulently sold the same property to multiple buyers. Such issues typically came to light when the buyers sought to take possession of the property, only to discover that it had already been sold to someone else. In such cases, buyers faced significant distress, often losing out on their investments. By introducing the tripartite sale agreement early in the process, the Noida Authority aims to prevent such fraudulent activities. The signed agreement will act as legal proof that the buyer is the legitimate purchaser of the property, which in turn prevents developers from reselling the same unit to multiple buyers or canceling sales at will.
Moreover, the tripartite agreement is designed to address certain gaps in the current system that allowed buyers to resell properties back to developers before actually taking possession. This practice enabled buyers to avoid paying stamp duty, which was a significant issue. With the new rule in place, any such informal agreements on stamp paper made at the stage of initial payment will become invalid. By involving the Noida Authority from the outset of the transaction, the tripartite agreement will create a more transparent and secure environment for property transactions.
In summary, this new rule is expected to enhance the integrity and transparency of the property buying process in Noida, safeguarding buyers from fraudulent practices and ensuring that developers are held accountable for their transactions. The introduction of the tripartite sale agreement is an important step in improving the real estate market in the city and protecting the interests of all parties involved.
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