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The Greater Noida Authority has mandated that homebuyers must now pay stamp duty and register their flats at the time of booking, aligning with RERA guidelines that require a registered sale agreement once 10% of the property's value is paid. Previously, registration occurred at possession, but delays in project completions left many buyers without legal recourse. This policy aims to ensure transparency, formalize transactions early, and secure revenue. While similar rules exist in Noida and YEIDA areas, developers have raised concerns over the lack of a clear refund process in case of cancellations. Industry experts remain cautious about the policy's practical impact.
The Greater Noida Authority has introduced a major policy change requiring homebuyers to pay stamp duty and register their flats at the time of booking, shifting the legal process earlier in the transaction cycle. This directive aligns with Section 13 of the Real Estate (Regulation and Development) Act, 2016, which obligates developers to execute a registered agreement to sell once a buyer pays 10% of the property's value. Authorities will calculate stamp duty based on the property's total cost, while a separate possession deed must be signed later on an INR 100 stamp paper during handover. Advertisement
Earlier, buyers typically paid stamp duty upon receiving possession. However, several housing projects in Greater Noida have remained stalled for over a decade, leaving buyers without homes despite making full or partial payments. By advancing the legal formalities, the Authority seeks to ensure revenue inflow and deter informal transactions. Developers, while acknowledging the intent to improve transparency, have raised several concerns about the policy. Many question the absence of a formal refund mechanism in case a buyer cancels after registration.
Similar frameworks are already in place in Noida and under the Yamuna Expressway Industrial Development Authority (YEIDA). In November 2023, the Uttar Pradesh government directed local authorities to enforce RERA guidelines that prevent developers from collecting more than 10% of a flat's cost without a registered sale agreement. Despite this push for regulatory enforcement, several industry experts remain skeptical.
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