New rule by the Greater Noida Authority on stamp duty payment

If you are an interested homebuyer looking to invest in a flat in Greater Noida, you need to know about the new rule by the Greater Noida Authority and its impact on stamp duty payment. A stamp duty is a fee that applies to property and amounts to around 6-7% of its total cost.

Until now, buyers needed to pay this fee when the property was being handed over to them by the builder. However, they now need to pay this very same stamp duty during the booking, as the authority made it compulsory for builders to register flats during booking in new housing projects instead of doing so upon completion.

In addition, this new rule, in regard to Section 13 of the Real Estate (Regulation & Development) Act (RERA), 2016, requires builders to implement a documented bipartite “Agreement to Sell” with the buyers once the flat’s 10% cost is made, with applicable stamp duty payment as per the value of the property. Note that this also needs a “Possession Deed” to be signed separately on a Rs 100 stamp paper during the handing over of the flat.

Questions regarding whether this stamp duty will be refunded, as 20-25% of flat bookings often get cancelled, still need to be answered.

Source: Economic Times