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In order to safeguard homebuyers, the Noida Authority has mandated a tripartite ‘sale agreement’ between the buyer, builder and the Noida Authority after 10 per cent payment from homebuyers.
Till now, flat registration used to take place at the time of project completion. (Representational Image)
In order to safeguard homebuyers, the Noida Authority has made it mandatory for real estate developers to register a flat after receiving 10 per cent of the total payment. It mandates a tripartite ‘sale agreement’ between the buyer, builder and the Noida Authority when purchasing in all new housing developments at Noida in Uttar Pradesh.
Flat Registration: What Are the Latest Rules Vs Existing Rules?
Till now, flat registration used to take place at the time of project completion. Now, the latest guideline mandates it as soon as the builder receives 10 per cent of the flat price from the buyer. The tripartite agreement will also be entered into at the same time.
As of now, buyers and builders enter into an initial agreement on a Rs 100 stamp paper. The Noida authority enters the contract only after the developer has obtained an occupancy certificate and completion certificate for the project.
How Will It Help Homebuyers, Developers?
The real estate experts say the latest move will promote transparency and accountability from both developers and homebuyers.
Sahil Aggarwal, CBO, Nimbus Projects Limited, said, “The Noida Authority’s recent decision to require flat registration at the time of initial payment, rather than upon project completion, marks a significant and positive shift in the real estate sector. By mandating registration from the very start, this new policy promotes transparency and accountability from both developers and homebuyers. For developers, it increases the incentive to adhere to project timelines, while for buyers, it provides an additional layer of security and clarity over ownership.
This policy change comes at an opportune moment, as Noida’s real estate market is experiencing heightened demand due to extensive infrastructure developments and the relocation of several multinational corporations to the area. The requirement for early registration will strengthen buyers’ confidence by providing legal reassurance right at the point of investment, reducing uncertainties surrounding possession timelines and project progress, Aggarwal added.
“With these measures, Noida is on its way to establishing itself as a safer, more secure, and reliable destination for real estate investment. This regulatory change underscores the Authority’s commitment to fostering a more structured and buyer-friendly market that benefits all stakeholders involved,” he said.
Ravi Nirwal, sales director and principal partner, Square Yards, said, “The decision by the Noida Authority to initiate a sale agreement before more than 10 per cent of the collection is a forward-looking measure to safeguard homebuyer interests. By ensuring that buyers are not required to commit a substantial portion of the property value without a formal sale agreement, this move bolsters buyer confidence.”
Furthermore, the public availability of these documents strengthens transparency around property values, making it easier for buyers to make informed decisions in the market. Noida, being a pivotal residential hub within Delhi NCR, stands to benefit greatly from such initiatives, Nirwal added.
