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According to CREDAI Chairman buyers already have to arrange a large sum at the time of booking and with this new rule home buyers have to pay extra for the agreement registration as well
According to CREDAI Chairman Manoj Gaur, this new rule would lead to buyers facing significant financial losses if they cancel their bookings. (Representative/PTI File)
Noida and Greater Noida have become increasingly popular destinations for property buyers, leading to a recent surge in new residential developments. This demand has fuelled a steady stream of project launches in these areas, including along the Yamuna Expressway.
However, a recent decision by the Noida-Greater Noida Authority regarding the Builder Buyer Agreement is causing concern among potential homeowners. This new regulation is anticipated to increase buyers’ financial obligations.
CREDAI recently reacted to the Noida and Greater Noida Authority’s decision to register the Builder Buyer Agreement, saying that it will increase the burden on buyers.
Accroding to CREDAI Chairman and Gaur Group CMD Manoj Gaur, this rule will put an unnecessary financial burden on home buyers. Buyers already have to arrange a large sum at the time of booking. With this new rule, they will have to pay extra for the agreement registration as well, he pointed out.
Gaur stated that, in other states, ordinary stamp paper (ranging in value from Rs 1,000 to Rs 10,000) is used for sales contracts, but this is not the case in Noida. This new rule also includes a non-refundable 1% registration fee, representing a direct loss for buyers.
Should the booking need to be cancelled for any reason, buyers will also encounter difficulties due to the absence of a clear refund policy. A 6% stamp duty is already a significant amount.
According to Manoj Gaur, typically 15-20% of bookings in any project are cancelled due to various reasons, which RERA also accepts. However, this new rule means buyers face significant financial losses if they cancel their bookings, especially when already experiencing financial difficulties.
He stated that this rule will negatively impact the real estate sector in Noida, Greater Noida, Yamuna Expressway, and the entire state, which is a crucial part of the state’s economy.
“We believe that this rule should not be implemented as it can stop the growth of the state’s real estate sector,” Gaur said.
However, the Authority has not provided any information regarding the withdrawal of this rule or any amendments to it.
- Location :
Greater Noida, India
