In a landmark move aimed at streamlining real estate transactions and enforcing greater accountability, the Greater Noida Authority has implemented a new rule requiring homebuyers to pay stamp duty at the time of booking a flat. This measure, aligned with the Real Estate (Regulation and Development) Act (RERA), 2016, is expected to enhance transparency, prevent fraud, and ensure smoother project execution.
What Does the New Rule for Homebuyers Say?
Under this new directive, builders in Greater Noida are required to register flats with the authorities at the time of booking rather than after project completion. This means homebuyers must pay the stamp duty upfront—at the time of booking—rather than at the time of taking possession.
In compliance with Section 13 of the RERA Act, once a buyer pays 10% of the total cost of the flat, the builder must execute a registered ‘agreement to sell’ with the buyer. This agreement must be legally documented through the payment of stamp duty based on the property’s value.
Possession and Stamp Paper Formalities
At the time of possession, a separate ‘possession deed’ must be signed on a Rs 100 stamp paper. Traditionally, homebuyers would pay stamp duty when they received possession, but now the obligation arises at booking. This shift is expected to reduce disputes and delays in final registration.
The policy aims to protect homebuyers in light of numerous stalled projects in Greater Noida—many of which have been delayed for over a decade due to pending builder dues. By ensuring legal registration of property agreements early in the buying process, the Authority hopes to reduce the risks faced by buyers and improve financial discipline among developers.
Impact on Buyers and Developers
The early payment of stamp duty will require homebuyers to plan their finances accordingly. On average, stamp duty in Noida ranges from 6% to 7% of the property’s total value. While this may place a slightly higher initial burden on buyers, it also secures their legal rights over the property at an earlier stage, offering greater protection.
Stamp Duty Rates in Noida (Uttar Pradesh) – 2023
| Ownership Type | Stamp Duty | Registration Fee |
|---|---|---|
| Male owner | 7% | 1% |
| Female owner | 6% | 1% |
| Joint (Male + Female) | 6.5% | 1% |
| Joint (Male + Male) | 7% | 1% |
| Joint (Female + Female) | 6% | 1% |
Note: Women buyers can avail a 1% rebate on stamp duty for property values up to Rs 10 lakh.
Conclusion
With the introduction of this rule, Greater Noida joins Noida and YEIDA in aligning with the RERA guidelines that prohibit developers from accepting more than 10% of the flat’s cost without executing a registered sale agreement. This significant policy shift strengthens buyer protection, encourages regulatory compliance, and is likely to alter the dynamics of real estate transactions in the region.
