The process of Transfer of Property and Registration
August 23, 2015
In the whole article only the terms and procedure of only of Leasehold properties is mentioned
The Residential Properties in Noida comprises of :
- Residential Plots : Residential Plots are those plots which are allotted by Noida Authority to general public (with reservation) through schemes by mode of Lucky draw. The Person who is allotted the Plot needs to fulfil the terms and conditions of noida authority of allotment and is called as the allottee of the Plot . After the plot is allotted, a lease deed (for a period of 90 years) is executed between the allottee and Noida Authority. After the execution of Lease deed the possession is handed over to the Allottee. The Allottee needs to construct the house on the plot within a span of 2 years after getting the map sanctioned, failing which extension charges are payable in the form of penalty to Noida Authority for late construction. Every year of the Lease deed the allottee needs to deposit the annual lease rent (payable in advance) and he also has the option to pay one time lease rent which is equivalent to 11 times the annual lease rent. After the building is constructed the allottee needs to get the completion certificate of the Plot. The Plot can be sold at any stage by the allottee.
- Residential (Housing) Flats : Residential flats are those flats which are allotted by Noida Authority to general public (with reservation) through schemes by mode of Lucky draw. The Person who is allotted the flat needs to fulfil the terms and conditions of noida authority of allotment and is called as the allottee of the flat . After the flat is allotted, a lease deed (for a period of 90 years) is executed between the allottee and Noida Authority. After the execution of Lease deed the possession is handed over to the Allottee. Every year of the Lease deed the allottee needs to deposit the annual lease rent (payable in advance) and he also has the option to pay one time lease rent which is equivalent to 11 times the annual lease rent. The flat can be sold off by the allottee.
- Builder Flats (Group Housing Flats): Group Housing flats are those flats which are allotted by the builder/society to the interested buyers. The Plot is allotted to the builder on tender basis and after the building is constructed the flats are sold off by the builder. A lease deed is executed between the builder/society and Noida Authority for a period of 90 years starting from the date of execution of lease deed after which possession is given to the builder/society. The builder pays the value of the plot to the Noida authority in instalments and also needs to compulsory pay the one time lease rent. The builder needs to get the map sanctioned and other clearances, before the construction is started. Once the Construction of flats is done a completion certificate is given by the Noida Authority. After the completion certificate is granted by Noida Authority, a sub lease between three parties is executed i.e between the Noida Authority, Builder and the buyer of flat. The Buyer of flat is bound by the rules and regulation of the buyer as well as Noida Authority. After Sub-Lease is done, the possession is handed over to the buyer of the flat. The buyer can now sell the flat.
Procedure for buying Properties in Noida
- Finding a Suitable property : Suitable property can be found out through online portals / Local dealers/ Brochures/Advertisements etc.
- Due Diligence : Although due diligence can be skipped before transacting with seller since it involves costs however the importance of due diligence is cannot be written off.
- Transacting with the Seller : Once a suitable property is found, the buyer will meet the seller to discuss the price of Property and other terms & conditions. The buyer needs to look at the original title documents-Allotment Letter, Lease Deed, Possession certificate, Sanctioned map, Completion certificate and other chain documents if property is sold earlier. After the documents seems satisfactory, an advance and part payment is made.
- Signing of Agreement : An Agreement to sell is thereby executed depicting the mutual terms and conditions. The terms and condition should essentially include the time in which the transaction is to be completed, The liablility of getting the necessary documents and other costs and expenses for the Transfer. This agreement can be either made on Rs. 100 Stamp or stamp duty @ 2% of the Total transaction if the agreement needs to be registered (Registered agreement is required in case of taking loan from bank for purchasing property)
- Getting the necessary Documents and things: Before the Property is transferred, a lot of
supporting documents are required.
- (a) No Dues certificate from Accounts Department
- (b) No Dues certificate from Water Department
- (c) No Dues/ Objection certificate from society
- (d) No dues from Bank if the property is mortgaged.
- (d) Any other no dues certificate required in different case.
Note : It is always suggested by that in case of residential plots and flats(except group housing flats) the payment of one time lease rent should be made prior to filing the Transfer since the value of lease rent is revised to the current rate, which in most of cases can be more than 10 times of existing lease rent. After the above documents are procured a Transfer application is filed in noida Authority with necessary affidavits along with Transfer charges and processing fee.
- After the transfer Application is filed a permission of transfer in the favour of buyer, is granted by the Noida Authority in the form of Transfer Memorandum.
- After the Transfer Memorandum is obtained, the Applicable Stamp Duty is to be bought by the buyer of the property.
- After the stamp duty is procured, a Transfer deed is executed between the Seller and the purchaser and is registered with the Sub-Registrar.
- After the registration of property, a certified copy of transfer deed is to be obtained, which is to be submitted in Noida authority for Mutation.
- After the mutation is given, the process of transfer is complete. After the above procedure is complete and If the property is purchased through loan from bank, then a Permission to mortgage is also required by the Bank, which is obtained from the Nodia authority by the buyer.
Costs and Expenses involved in the Transfer of Residential Property
- Transfer charges and Processing fee : Transfer Charges and Processing fee is required to be Deposited in Noida Authority for getting the transfer memorandum . Transfer charges is 5% of the current allotment rate/ per sq. Mtr. And processing fee is Rs . 1000. Transfer charges are also charged by Builders/ Societies for the transfer of flat .
- Stamp Duty : Stamp Duty is paid at 5% of the Total Consideration or Circle rates, whichever is higher. A discount of Rs. 10,000/- is allowed on Total Stamp duty in case of lady transferee. E-stamps can bought from Stock Holding corporation of India.
- Sub-Registrar Fee : Sub Registrar fee of Rs. 10,100/- (in cash) is payable at the time of registration of Tranfer Deed.
- Legal fee and miscellaneous expenses : This can range from Rs. 30,000 to Rs. 60,000/- depending on different cases.
Pls download the transfer charges and circle rates from our web site www.samreddhi.co.nr if required
In case of Group Housing flats, a sub lease deed is executed with the payment of applicable stamp duty
after possession is offered by the builder.
The freehold properties have the same procedure except that no permission is required by the Noida Authority and directly a sale deed can be registered.