Property Transfer Charges In Noida

While purchasing or selling a property, you might have encountered transfer chargers or transfer of memorandum (TM) when transferring the property in someone else's name. These are used to legally transfer ownership under the Noida Authority in compliance with all property laws and regulations. Today, we will tell you how these charges are calculated? And why they are levied?

Why are property transfer charges levied?

Unlike Gurgaon, Ghaziabad, Bangalore, and Delhi, Noida has the concept of leasehold property, where the land belongs to the Noida Authority, and the builder is considered a lesse. This means that every time you purchase a property, a lease rent or charge under transfer of property act will be paid to the Noida Authority. This lease rent is known as transfer charges, and you pay it as rent for 99 years of lease to the Noida Authority.

But don't think that after 99 years, they will throw you from your home; you need to renew the lease after 99 years, and this cycle will be continuous. However, this charge under transfer of property act is not applicable when you purchase a new apartment or flat in Noida. They are only appropriate when you buy a flat on resale. The change in the property's ownership is permissible only after executing the lease deed.  Some people think transfer charges are the same as stamp duty, but they are different and used for other purposes. Let's understand these two in brief.

Difference Between Transfer Charges And Stamp Duty

Stamp duty is a source of revenue for the government or a tax to legalise your property's ownership and documents. It is imposed on all types of properties regardless of their kind. However, a transfer fee is only applicable on resale property and only in places where the concept of leasehold is being used. Anyone can pay transfer charges, either the buyer or seller, to the Noida authority, but stamp duty is only paid by the buyer, which is mandatory.

How are transfer charges calculated in Noida?

To calculate property name transfer charges, consider that you have bought a 100 sq metre property for sale in Sector 30, Noida. Here's what the calculation would look like:

⇒  Circle rate in Sector 30, Noida: Rs 1,26,750 per sq metre
⇒  Transfer charges- in the area: 2.5% of 1.26 lakh = Rs 3,168 per sq metre
⇒  Transfer charges payable: Rs 3,168 x 100 = Rs 3.16 lakh

You must pay Rs 3.16 lakh on this property as transfer charges. 

Transfer charges are applicable when you purchase a GPA property

Suppose you purchase a property from a General Power Of Attorney Holder (GPA). The property name transfer charges will be doubled. In this case, the seller and buyer will bear the charges equally.

Now, let's understand this process more efficiently.

If you purchase a GPA property of 1000 sq. ft.(92.903 sq metre) in sector 132 Noida, where the average circle rate is 50000 per sq. mtr

Use this formula: Transfer charges per sq m on GPA – (circle rates in sq m x 2 ) Divided by 100 x 2.5

Now let's take an example: 50000x2=100000

⇒  100000/100=1000 x 2.5=2500 per sq m is the transfer charge
⇒  Now multiply the number of area in square metres, which is 1000, by the circle rate per sq m, which is 2500

2500x92.903=232,257.5 (two lakh thirty-two thousand and fifty-seven point five rupees)

Transfer charges for flats in Noida

⇒  Flats allotted from 2001 to 2011: 10 percent of the total allotment price
⇒  Flats allotted from 2011 onwards: 5 percent of the total allotment price
⇒  Flats allotted from 1991 to 2000: 20 percent of the allotment price
⇒  Flats allotted before 1990: 50 percent of the allotment price
⇒  Transfer Charges for EWS flats: Rs 30,000
⇒  Transfer Charges for LIG flats: Rs 60,000
⇒  Transfer Charges for MIG flats: Rs 1,00,000
⇒  Transfer Charges for HIG flats: Rs 1,50,000 

Process to pay property transfer charges in Noida

To successfully transfer a property in Noida and pay the transfer charges, follow the below steps:

⇒  Go to the Sub-Registrar's Office: Take all your property papers and pay the transfer charge.
⇒  Complete Property Registration: Pay the required amount for property registration and finish the process.
⇒  Visit the Noida Authority Office: Submit all your property registration documents there.
⇒  Wait for Approval: The Noida Authority will review your documents and collect the transfer charges from the Sub-Registrar's Office. This might take some time.
⇒  Receive Transfer of Memorandum: Once approved, you'll get a Transfer of Memorandum from the Noida Authority. This proves that the property is officially transferred to you.

Conclusion

Understanding transfer charges and how they are levied can prevent many kinds of property fraud and excess imposition of funds. It also helps you calculate your charges on your own and ensure that you pay the correct amount without any discrepancies.