All about lease and registration at tri cities of Noida, Greater Noida and Yamuna Expressway!!!

[Safal Suri]

 

 

 

Dear Arnab & all...

 

Finally there is some clarity regarding the latest notice by YEA, for paying up 5% charges to register the lease agreement. For the benefit of those who are confused and like to understand entire details, I'll start from basics. This is how the entire thing works:

 

 

Step 1:

An authority, YEA in this instance, announces a scheme and invite general public to apply for offered plots/flats/bungalows. There is a certain period of time provided, during which the public has to file an application. For e.g. 15.02.2009 to 15.05.2009.

 

Step 2:

The authority then conducts a draw of lots on a certain date, as provided in the scheme brochure. Draw dates may change as and when announced by the authority.

 

Step 3:

Successful applicants are sent intimation of allotment (Allotment Letters), informing them that their application was successful in the draw and requesting them to submit the balance amount (Allotment Money) within in stipulated period of time. Failure in depositing the Allotment Money often leads to cancellation of the allotment.

 

Step 4:

After a while, the booking amount (Application Money) is returned to un-successful applicants.

 

Step 5:

In due course of time, the authority develops the offered location within and invites the allottee to take the physical possession of his/her plot.

 

Step 6:

At the time of taking the possession of the property, allottee is required to pay the lease money *(A).

 

Step 7:

Once the lease money is paid, a Lease Deed *(B) is signed between the authority & the allottee.

 

Step 8:

Once the lease deed is signed, the allottee is required to register *(D) the property.

 

It is only after... the entire property value is paid to the authority, lease rent is paid to the authority, lease deed is signed and the lease deed is registered with the sub-registrar of the district, that one becomes complete and lawful owner of the property.

 

A word of caution and general disclaimer! All information provided in this post is meant only for general knowledge. I make no claim of the accuracy of the information.

 

However, I'd honestly appreciate if anyone can add to the information and/or make required correction, as and where need. Your feedback will not only benefit the readers but also help improve my understanding of the area.

 

Cheers...

 

Safal Suri

 

 

Note: Please read the terminologies provided below for better understanding.

 

 

 

*(A) Lease Money:

Authorities of the tri-cities of Noida, Greater Noida & Yeida, allot the property to the allottee on lease for a duration of 90 years. Allottee is required to pay the lease money to the authority to enjoy the continued usage of the property for 90 years. There are two options available to the allottee to pay the lease money. In first option, the allottee can pay the lease money every years. In this instance, lease money is 1% of property size multiplied by the current circle rate. E.g. Property Size (1,000 sq. mt.) x Circle Rate (Rs. 4,750/- per sq. mt.) x 1% = 1,000 x 4,750/- = 47,50,000/- x 1% = Rs. 47,500/- per year. However, lease rent will change with change in circle rate. So if the circle rate was to become Rs. 6,000/- per sq. mt. in 2010, then the lease rent would be Property Size (1,000 sq. mt.) x Circle Rate (Rs. 6,000/- per sq. mt.) x 1% = 1,000 x 6,000 = 60,00,000 x 1% = Rs. 60,000 per year. There is another option available. In the second option, the allottee can pay lease rent of current year and multiply it with a certain number of years (as decided by the authority from time to time) and that would be considered as ONE TIME lease rent, which is equivalent to lease rent for entire lease duration of 90 years. In case of Yeida, YEA has decided it to be of 10 years duration. So if the current circle rate is Rs. 4,750/- then ONE TIME lease rent would be Property Size (1,000 sq. mt.) x Circle Rate (Rs. 4,750/- per sq. mt.) x 10% = 1,000 x 4,750/- = 47,50,000/- x 10% = Rs. 4,75,000/- for the duration of 90 years.

 

*(B) Lease Deed:

Once the lease money is paid, lease deed is signed between the authority/leasor and allottee/leasee. It is similar to the rent agreement. Here the leasor declares that he/she is the lawful owner of the certain property and that the said property has been leased to the leasee for a certain duration of time in consideration of certain amount of money under certain terms and conditions. There are some advantages and some disadvantages of having a property under lease deed, as opposed to free hold. The biggest disadvantage is that whenever the owner/leasee wishes to sell the property, he/she has to take the permission of the authority. In doing so, the seller has to pay the transfer charges (5) to the authority. Second biggest disadvantage is that the leasee has to take the permission of the authority, every time he/she wishes to mortgage the property. As for advantages, the single most important advantage is that the leasee doesn't have to pay the house rent as the property is owned by the authority and the leasee has already paid the lease rent. Secondly, as the authority remains the owner of the property, if someone illegally occupies the plot/land/property, it is the duty of the authority to vacate the premises and ensure that the leasee enjoy the property without any interruption. * The money paid for lease deed goes to the authority.

 

*(C) Registry:
Once the lease deed is signed between the authority and the allottee, it needs to be registered with the sub-registrar of the district, to become a valid contract/lease deed in the court of the law. So, essentially the registry takes place after signing of the lease deed. Every time a property is sold and a transfer takes place in the name of the new buyer, Transfer Deed *(D) needs to be registered. * The expenses incurred during the registration goes to the stamp-and-revenue department of the state.

 

*(D) Transfer Deed:

When the lease deed, originally signed between the authority and the original allottee, is transferred in the name of the new buyer, it is henceforth called the Transfer Deed.

 

*(E) Transfer Charges:

Once the lease deed is signed for 90 years, the authority cannot and does not change lease rent for the new buyer. However, the authority imposes a certain amount of charges, to transfer the lease deed in the name of new buyer. Such charges are typically calculated on basis of per sq. mt., for e.g. Rs. 550 per sq. mt. x plot size.

 

 

 

 

[अर्णब् मुखर्जी]

@Safal: Excellent write-up. This is Lease-Registry 101 lesson.
Just one clarification. If Lease Rent is calculated on Circle Rate,
then the Registry is done on allotment rate. I know one of the two is
based on allotment rate.

+++++++++++++++++++++++++++++++++++++++++++++++++

[Safal Suri]

Dear Arnab!

Lease agreement is always on "Allotment Rate". So far... Noida and Greater
Noida Authorities charge 11% of allotment rate... where as this very scheme
brochure states that Yamuna Expressway Authority will charge 10% of the
same.

Till recently the first registration of original LEASE DEED was done on
allotment rate... but late last year the rules changed and... now the rule
is that the registry on allotment rate can only be done till 6 months of
date mentioned on the allotment letter. Thus all the ruckus!

Point to note... Since LEASE DEED cannot be executed till the possession is
handed over to the allottee/owner... thus... the provision to sign a LEASE
AGREEMENT and get that register... with an undertaking by the authority that
the money spent in purchase of 5% stamp paper and other expenses incurred to
execute such registration... will be adjusted in the future... either in
totality... meaning 5% @ Rs. 4750/- will be whole sole expense... or if the
rate is revised... say 8% @ Rs. 8,000... then balance 3% @ 8,000 will be
payable in addition.

At least this is my understanding. So far there is no clear commitment that
5% @ 4,750 will be all that will be payable. We will come to know of it only
after the entire procedure starts and the rules become clear. For the time
being... I suggest... everyone keep their expectations low and be prepared
for any news... god only knows what's going on in Authority's mind.

I will let you know as and when I have further information.

Cheers...

Safal Suri

--------------------------------------------------
From: "?????? ???????" <arn...@gmail.com>
Sent: Wednesday, March 24, 2010 11:53 PM
To: "YEIDA" <ye...@googlegroups.com>
Subject: [YEIDA:7297] : Re: All about lease and registration at tri cities
of Noida, Greater Noida and Yamuna Expressway!!!

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[Radix Solutions]

Safalji, fantastic write up. One clarification though - as per my understanding from my investments in noida/greater noida, lease rent payable to the authority every year remains the same till the time the property changes hands. For a new purchaser, the new lease rent is then calculated on the authority rate (and not circle rate - there can be a difference in the authority rate and the circle rate (latter is used for stamp purposes and the former for new allotments etc by the authority)) prevailing at the time of transfer memorandum.

Therefore in Noida specially, the buyer prefers to pay one time lease rent just before the property is transfered in his name, on behalf of the previous owner (lease rent then is calculated at the original authority rate, thus resulting in huge savings for the buyer). Correct me if I am wrong!!!!

Pulkit Jain

9810566774

2010/3/24 अर्णब् मुखर्जी <arn...@gmail.com>

[Yogendra Sharma]

Hi Safal Ji,

I bought a plot 300sqr.m in sector 20 yamuna express way on 21th Jan 2010. I
have already submitted/paid stamp duty and transfer fees but I don't receive
transfer letter from authority.

I want YEIDA today, now they are telling that transfers are closed and come
when transfer will be open. Do you have any info that what will happen with
us who have already paid the transfer amount and stamp duty.

Warm Regards,

Yogendra Sharma (9810478569)

Dear Arnab!

Cheers...

Safal Suri

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[rohit agarwal]

Hi Safal , Thanks its very difficult to find this info any where . 

Do you know what is the current Transfer charges ( D ) for a resale of flat in sector 143 in Noida ?