Lease­hold to free­hold prop­erty con­ver­sion in Noida

Realty Plus - - News -

The Noida Au­thor­ity has said it may con­sider mak­ing res­i­den­tial prop­er­ties free­hold, a pro­posal which would have an im­pact on sell­ers, buy­ers and the real es­tate mar­ket. All plots or flats in Noida are presently sold on lease­hold ba­sis. What this means is that the buyer is given the flat or plot on lease for 99 years and is re­quired to pay a cer­tain sum as lease rent to the au­thor­ity. But un­der the free­hold sys­tem, the buyer will get full own­er­ship of the prop­erty. Presently, buy­ers have to ap­proach the au­thor­ity for trans­fer, sale and pur­chase of prop­erty, ap­ply for a no ob­jec­tion cer­tifi­cate when they have to sale or pur­chase a prop­erty. Sale and pur­chase with­out the re­quire­ment for a no ob­jec­tion cer­tifi­cate from the au­thor­ity would mean a faster eco­nomic cy­cle - buy­ing and sell­ing of prop­er­ties will be faster, there will be more liq­uid­ity in the sys­tem and a sin­gle prop­erty will un­dergo more change of hands.

Un­der the pro­posal that the Noida Au­thor­ity is con­sid­er­ing, floor-wise reg­is­tra­tion, sim­i­lar to Delhi, may also be al­lowed in case of plot­ted devel­op­ments. At present, one can con­struct four floors on a plot but can­not ex­ec­u­tive a registry sale or pur­chase of each floor. Ac­cord­ing to real es­tate ex­perts, the floor-wise registry will ben­e­fit prop­erty own­ers as they will be able to trans­fer their prop­er­ties to blood rel­a­tives with­out seek­ing ap­proval or pay­ing trans­fer fees to the au­thor­ity.

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