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The new registration policy in Noida promises to bring in transparency, accountability, and security to an otherwise complex real estate market, thus reducing risks for the buyer, especially in the resale sector.
The policy introduces tripartite agreements between the builder, buyer, and the Noida Authority. (Representative image)
Authored by Vishal Raheja:
The Noida Authority recently launched a new registration policy to safeguard the interests of homebuyers and simplify the process of property buying. It promises to bring in transparency, accountability, and security to an otherwise complex real estate market, thus reducing risks for the buyer, especially in the resale sector.
Key Highlights of the Policy
Compulsory registration of flats with the government: As of now, all property transactions need to be registered with the government. Formalisation of each transaction aims at giving a piece of paper as an official proof of ownership to the buyer. Most of the transactions were informal in nature before this change; hence, it led to frauds and multiple sales of the same property. This process helps in case of under-construction property to formally ensure a record of ownership and that too as per the governing body.
Tripartite Agreements for More Clarity: The policy introduces tripartite agreements between the builder, buyer, and the Noida Authority. Under the three-way contracts, buyers can get more clarity on the roles and responsibilities of each party, especially regarding timelines, construction quality, and regulatory compliance. A current case depicts a property buyer was at a position to monitor development reports directly from such arrangements which helped him eradicate project-related uncertainties on the exact timescale of completion. Thus, this policy will usher in a level of assurance where cases of delay in a project and non-compliance cases will significantly be lowered.
Increased Resale Transaction Segment: The new policy in Noida is yet to cover resale transaction sectors, which have a reputation of being ambiguous. For example, the new owners will be ensured of whether the former owner legally handed over all the sale rights without any possibilities for a multiple sale of the same flat. Additionally, the rule sets that all the property-related dues including pending maintenance and previous government dues be paid before resale. Such an explicit declaration prevents the selling owner from claiming hidden expenses or litigations to be recovered from the purchasing seller on resale.
Reason Behind the Policy: Breaking with the Past Challenges
The Noida-Greater Noida region has witnessed increased land development over the past couple of years, but this breakneck speed brings along its own set of controversies as well. One resident recalled how his delayed registration in the property he bought back in 2018 from the premises of Noida left him in judicial troubles and he eventually lost the possession. Cases like this one create awareness that regulatory measures, holistic and effective, are needed now to protect homebuyers from all such fraudulent activities.
It also reduces property documentation discrepancies, which have been the root cause of buyers’ legal and financial problems in the past. The Noida Authority is introducing strict documentation and a direct line of oversight to eliminate these issues.
Benefits for Property Buyers
The Noida Authority’s policy has brought in the following tangible benefits for the buyers:
Enhanced Security and Trust: By mandating registration and clear documentation, the policy builds trust, especially among first-time homebuyers who might lack experience with real estate transactions.
Protection Against Fraud: Mandatory government registration and tripartite agreements are powerful tools for reducing fraud. Buyers now have greater recourse to legal action if any party breaches contract terms.
Streamlined Legal Procedures: With standardised agreements and documentation requirements, the policy makes property transactions simpler and faster, providing greater convenience for all parties involved.
Looking Ahead: Industry Perspective
Most of the developers and stakeholders in the realty market of Noida view the policy as quite positive, since it makes a progressive move toward becoming a well-regulated market with transparency. Many builders have expressed support for such regulations, since these align well with long-term goals concerning maturity and security of a market. A builder said that this policy promotes honest practices and enhances the level of confidence of buyers which may eventually help in creating demand for properties in Noida.
This is a consequence of the general trend occurring in India, towards increased transparency and security in the real estate marketplaces. As other cities also set similar reforms, Noida’s model may emerge as a prototype for several developing regions. The bottom line of all this will reach the buyer and help the government in its goal of providing a transparent and secure real estate environment.
(The author is founder and managing director, InvestoXpert.com)
