NOIDA: The Yamuna Expressway Industrial Development Authority (YEIDA) has mandated that builder-buyer agreements for group housing projects will only be considered valid if stamp duty is paid.
This requirement, already outlined in UP-Rera rules, ensures that buyers have valid proof of their flat registration and corresponding stamp duty payment at the time of booking. This will protect homebuyers from potential complications related to the sale or purchase of flats and plots from developers, officials said.
The proposal was passed at a YEIDA board meeting on Thursday, making it applicable to all new group housing projects in Yamuna City.
Builders will now be required to book flats for new buyers based on a registered builder-buyer agreement (BBA). Now, buyers will have to bear the cost of stamp duty for flat registration. While this may increase the initial financial burden, it also provides legal strength to the buyers, preventing builders from making arbitrary changes later on.
Earlier this month, UP chief secretary Manoj Kumar Singh, who is also the industrial development commissioner, had directed the three industrial bodies — Noida Authority, GNIDA, and YEIDA — to take this effective step. The move aims to address the issue of realtors selling properties to multiple buyers through unregistered agreements, leading to long litigation and distress for property consumers. Additionally, the state govt seeks to minimise revenue loss associated with unregistered agreements.
According to YEIDA CEO Arun Vir Singh, complaints are often received alleging that a buyer’s registration was cancelled due to slight delay in depositing money. At the same time, many buyers also complain that they had booked the flat somewhere else, but the builder is giving them the keys of another flat after the payment is made. To deal with such cases, the authority has decided to enforce the rule.
Under the prevailing process, buyers pay 10% of the total property cost and sign an agreement with the builder on Rs 100 stamp paper, detailing specifications about the property, including details of flats, their specifications, delivery date, and payment plan. Now, buyers will have to pay stamp duty on the 10% property cost at the time of agreement at the sub-registrar office.
