Realtors in Noida & Greater Noida strongly oppose local body’s new mandate of registration
property.
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The mandate requires homebuyers to pay 6% stamp duty on payment of 10% of the total cost of the house, which, according to developers, will spell financial burden for buyers.
“This would not be a favourable practice, as it imposes an unnecessary financial burden on buyers, who already have to arrange a significant amount at the time of booking,” said Manoj Gaur, chairman of the Confederation of Real Estate Developers' Associations of India. “In other states, the sale agreement is processed on a nominal stamp paper valued between Rs 1,000 and Rs 10,000, which is not the case here. The proposed 1% non-refundable registration fee that is part of the provision is also a direct loss for buyers.”
Developers said the lack of clarity on the refund policy in case of cancellation had added to the unease. Usually, 15-20% of bookings in residential real estate projects are cancelled due to various reasons, which is also recognised by the Real Estate Regulatory Authority.
“However, the new rule will cause a huge dent in finance for buyers seeking to cancel their booking as they are already burdened by unforeseen circumstances. The sector is of the view that the present provision would significantly deter the sector in Noida, Greater Noida, Yamuna Expressway and, in fact, the entire state, where real estate has emerged as a prominent part of the state economy,” said
