The Noida Authority has introduced a mandatory tripartite sale agreement for new housing projects. This initiative, announced after a board meeting chaired by Chief Secretary, aims to curb fraudulent practices and provide better protection for homebuyers.
Under the new system, builders, homebuyers, and the Noida Authority must now sign a formal agreement when the buyer makes the initial 10% payment for a property. In addition, the buyer must pay a 2% stamp duty at the registry department, formalising their legal commitment to the transaction. This agreement ensures that the Noida Authority is aware of the buyer’s identity from the outset, mitigating the risks of fraudulent resales or cancellations of agreements, which have been common in the region’s real estate market. Previously, agreements were often concluded on simple INR 100 stamp paper, with the Authority’s involvement only occurring after occupancy certificates were issued. However, this new tripartite agreement, which includes essential details like the specifications, costs, and possession timelines, will serve as a legally binding document from the very first payment. By formalising these transactions, the regulation aims to prevent unauthorized actions, such as builders reselling units to multiple buyers or unilaterally altering the terms of sale. Real estate experts and residents have welcomed the regulation, viewing it as an essential measure to ensure legitimacy in the market. It is expected to reduce instances of tax evasion and illegal transactions, while simultaneously increasing government oversight in real estate dealings. Experts argue that this initiative will restore trust in the sector, encouraging both investors and homebuyers to engage with more confidence.
Additionally, the state government’s rehabilitation package, introduced earlier this year, has made progress, with 29 out of 57 defaulting projects enrolling into the scheme. Between February and October 2024, 5,925 flats in Greater Noida and 1,643 flats in Noida were registered under the initiative, further promoting greater transparency and fairness in the region’s property market. While Noida has long been a hotspot for real estate investments, it has also been plagued by the lack of clear, regulated transaction frameworks. The tripartite agreement addresses this gap by providing a legal framework that safeguards homebuyers and ensures developers are held accountable. The initiative is poised to create a ripple effect across India’s rapidly growing property markets, especially in emerging hubs like Noida. It could inspire other cities to adopt similar measures, thereby enhancing overall transparency in the country’s real estate sector. Ultimately, this move could result in a more stable and sustainable housing market, protecting homebuyers from unscrupulous practices while fostering a more professional, regulated environment for developers.
