You might hear or read that Noida tops the list of cities having the most unsold inventory. As much as over 1 lakh units still unsold by Noida builders. The major reason for the buyer’s unwillingness to buy under-construction properties. In addition, the impact is also visible on ready-to-move-in properties which have not yet received Occupancy Certificate (OC) owing to developers failing to pay land dues to the authority. This has not only to give a hard time to the home buyers but also has to lead to disturbance and left liquidity crisis in the city.
However, there is a reason for cheer for both builders and buyers as the district administration is considering granting the registry of property even if the authority has not given NOC to the project through an “agreement to sub-lease” between the builder and buyer. The builder lobby has welcomed this move saying that this will help in improving the city’s image and will further be effective in bringing more investment in the city.
The plan was discussed in a meeting held on Saturday between officials of the district administration and the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA). The officials also evaluated changes in laws that now make it compulsory for the development authorities to allot Completion Certificates to builders within 8-days of applying for it.
I have explained above that in many cases it has been found that homes were ready, but the builder had not cleared the authority’s due and didn’t get a no-objection certificate (NOC). In such cases, the buyers are left in a stumble and would sometimes hang around into the homes they paid for but due to the unavailability of any valid documents for ownership.
As per district magistrate BN Singh, they can now charge the 5% stamp duty and register the flats on an agreement to sub-lease between the builder and the buyer”. He further explained that once the builder gets a NOC from the Noida Authority, it can finally sub-lease the property to the buyer. This would be a tripartite agreement between the builder, buyer, and the Noida Authority.
The DM further explained that once the Noida Authority provides NOC and Completion Certificate, we will then issue a final registry certificate with Rs 50 stamp duty.
As per the UP Urban Planning and Development Act, the Development Authority was supposed to respond within 3-months of application regarding issuing the completion certificate for a project. However, the law has now been revised to accelerate the delivery process with the increasing delays in the delivery of flats to homebuyers.
What is the new law saying?
As per the new law, the authority will grant NOC to developers according to the dues cleared. It means if a developer has paid 50% of the total dues then the authority will issue the NOC for 40% of the land area and keep 10% as a deposit. This will allow some of the buyers to get possession even if the developer has not paid the full dues to the authority.
