Last update:November 14, 2024, 4:02 p.m. IST

The new registration policy in Noida promises to bring transparency, accountability and security to an otherwise complex real estate market, thereby 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)

Written by Vishal Raheja:

The Noida Authority recently launched a new registration policy to safeguard the interests of home buyers and simplify the property buying process. It promises to bring transparency, accountability and security to an otherwise complex real estate market, reducing buyer risk, particularly in the resale sector.

Policy Highlights

Mandatory registration of apartments with the government: Now all real estate transactions must be registered with the government. The formalization of each transaction aims to provide a piece of paper as official proof of ownership to the buyer. Most transactions were informal in nature before this change; this therefore led to fraud and multiple sales of the same property. This process allows, in the case of property under construction, to formally guarantee a registration of ownership and this also according to the governing body.

Tripartite agreements for greater clarity: The policy introduces tripartite agreements between the builder, buyer and the Noida authority. Under tripartite contracts, buyers can gain greater clarity on the roles and responsibilities of each party, including timelines, construction quality and regulatory compliance. A current case shows that a property buyer was able to track development reports directly from these arrangements, which helped him eradicate project-related uncertainties regarding the exact completion timeline. Thus, this policy will usher in a level of assurance where instances of delay in a project and instances of non-compliance will be significantly reduced.

Increase in resale transaction segment: Noida’s new policy does not yet cover areas of resale transactions, which have a reputation for being ambiguous. For example, new owners will be assured of knowing whether the previous owner has legally assigned all sales rights without any possibility of multiple sales of the same apartment. Additionally, the rule states that all property-related assessments, including pending maintenance and past government assessments, must be paid before resale. Such an explicit declaration prevents the selling owner from claiming hidden fees or disputes to be recovered from the buying seller upon resale.

The reason behind this policy: breaking with the challenges of the past

The Noida-Greater Noida region has seen increased land development over the past two years, but this breakneck speed also brings its own set of controversies. A resident recalled how his late registration in the property he bought back in 2018 in Noida premises left him in legal trouble and he eventually lost possession. Cases like this raise awareness that holistic and effective regulatory measures are needed now to protect home buyers from all these fraudulent activities.

It also reduces discrepancies in property documents, which have been the cause of buyers’ legal and financial problems in the past. The Noida Authority introduces strict documentation and direct monitoring line to eliminate these problems.

Benefits for property buyers

The Noida Authority policy has brought the following tangible benefits to buyers:

Improved security and trust: By requiring registration and clear documentation, the policy builds trust, particularly among first-time buyers who may lack experience in real estate transactions.

Fraud protection: Mandatory government registration and tripartite agreements are powerful tools to reduce fraud. Buyers now have more recourse to legal action if one party violates the terms of the contract.

Simplified legal procedures: Through standardized agreements and documentation requirements, the policy makes real estate transactions simpler and faster, providing greater convenience to all parties involved.

Looking Ahead: Industry Perspective

Most developers and players in the Noida real estate market view this policy as quite positive as it is a gradual move towards a well-regulated and transparent market. Many manufacturers have expressed support for such regulations because they align well with long-term goals regarding the maturity and safety of a market. A builder said that this policy promotes honest practices and improves the confidence level of buyers, which could eventually help create demand for properties in Noida.

This is a consequence of the general trend observed in India towards increased transparency and security in real estate markets. With other cities also implementing similar reforms, Noida’s model could become a prototype for several developing regions. The end result of all this will accrue to the buyer and help the government achieve its goal of providing a transparent and secure real estate environment.

(The author is founder and CEO of InvestoXpert.com)