What is Noida property transfer charge? How does it impact buyers?

While property prices in Noida are one of the lowest among all other areas in the National Capital Region (NCR), homebuyers purchasing a resale flat here have to bear an additional cost, known as Transfer of Memorandum (TM) charges. Apart from paying stamp duty and registration charges to the Uttar Pradesh Revenue Department, you will also have to pay this duty—more commonly known as the transfer charge— to the Noida Authority, to get the ownership transferred in your name. This is primarily because land in Noida is sold by the authority on a leasehold basis to real estate developers and not on a freehold basis. Hence, every time there is a change in ownership of the property, a lease rent has to be paid to the Noida Authority for the same.

In this article, we look at the applicability of these charges and how much money a buyer has to pay, to get a resale property transferred in his name.

What are Noida transfer charges?

Unlike some authorities that sell land on a freehold basis, the Noida Authority allocated land to developers on a leasehold basis for a period of 99 years. That way, the Noida Authority continues to be the owner of the property while the builder has the power only of a lessee. Consequently, the transfer of ownership in case of a leasehold property requires a permission from the body that has the ownership rights over the said property.

So, each time a property for sale in Noida changes hands, the parties involved have to get permission from the Noida Authority to carry out the transaction and pay it a lease rent better known as the transfer charge. The change in the ownership of properties is permitted only after the execution of the lease deed.

The process is complete after the registration of the property in the sub-registrar’s office (SRO). After the completion of the registration process, the buyer has to approach the Noida Authority with all the necessary documents and apply for lease transfer and pay the transfer charge. After reviewing the application, the Authority will issue the transfer of memorandum certificate.

 

Is transfer charge applicable for property bought from a builder?

Almost always, the buyer will be responsible to pay the transfer charges as is the case with stamp duty and registration charges. Be advised that only transactions in the resale or secondary market attract a transfer charge and not if you are buying a unit directly from a developer.

It begs mention here that developers in the NCR have a huge unsold stock. Housing.com data show that markets in this region have an unsold stock consisting of over one lakh units, as on December 31, 2020. Buyers investing in these properties will not have to pay the transfer charges.

Transfer charges in Noida in 2023

Since its calculation takes place on the basis of circle rates, the transfer charges will vary across areas in Noida.

Transfer charges in Noida for flats

Properties allotted before 1990: 50% of the allotment price.

Properties allotted from 1991 to 2000: 20% of the allotment price.

Properties allotted from 2001 to 2011: 10% of the total allotment price.

Properties allotted from 2011 onwards: 5% of the total allotment price.

Properties allotted from September 24, 2021: 2.5% of the total allotment price.

Charges for Sharmik Kunj:  Rs 10,000 per unit

Charges for EWS flats: Rs 30,000 per unit

LIG flats: Rs 60,000 per unit

MIG flats: Rs 1,00,000 per unit

HIG flats: Rs 1,50,000 per unit

Source: Noida Authority

Know about: 2 bhk flat in Noida on rent 

Transfer charges in Noida for residential plots and group housing

Sectors	Transfer charges in Rs per sq metre
14, 14A, 15A, 17, 44	Rs 1,980, plus 2.5% of location charges
15, 19, 21, 25, 26, 27, 28, 29, 30, 33, 35, 36, 37, 39, 40, 47, 51	Rs 1,380, plus 2.5% of location charges
20, 23, 31, 34, 41, 42, 43, 46,  48, 49, 50, 52, 53, 61, 71, 92	Rs 1,005, plus 2.5% of location charges
11, 12, 22, 55, 56, 72, 105, 108	Rs 840, plus 2.5% of location charges
Others	Rs 720, plus 2.5% of location charges

Source: Noida Authority

Note: Transfer charges on single-storey houses shall be applicable as per residential plots.

Additional premium

In addition to sector rate, following location charges are also applicable

• For corner plot: 5% of the premium.
• For plot facing park/green belt: 5% of the premium
  • For plots facing 18 mtr. Or more wide road: 5% of the premium.
  • For plot facing 30 mtr or more wide road: 20% of the premium.

If a property is being transferred in the name of a blood relative, the buyer will have to pay only half the rate as transfer charge. Before 2012, the Noida Authority charged Rs 1,000 as the transfer fee. On properties bought from someone with only a general power of attorney (GPA), the Authority charges double the amount.

Transfer charge in case of death of plot owner

Transfer of plot is permitted in the name of legal heirs after death of allottee without any transfer charges in favour of father/mother, husband/wife, son/daughter (married/unmarried) and vice versa.

In case plot is being transferred in favour of following relations, such permission will be granted subject to fulfillment of prescribed formalities and on payment of transfer charges equivalent to 50% charges of applicable in case of transfer of plot these charges have been considered on the basis of attorney case:

1. Son/daughter of deceased allottee’s Son/Daughter
2. Brother/sister of deceased allottee
3. Brother’s widow
4. Grand mother/grand father, maternal grand mother/maternal grand father
5. Brother/sister of father/mother

Sample of transfer application

(Source: Noida Authority)

 

Sample affidavit on non-judicial stamp paper

(Source: Noida Authority)

 

Latest news

 

No transfer fee on land transfer between blood relatives: Noida Authority

August 11, 2022: The Noida Authority has decided to abolish the 2.5% transfer fee if land is being transferred from a brother to his sister, from a brother to another brother, and from a sister to her sister. Transfer charges will also not be applicable when land is being transferred among other blood relations, the authority said in a statement.

***

Noida Authority halves transfer charges on resale property

September 24, 2021: In a move that would significantly lower the cost of acquisition of resale properties, the Noida Authority on September 24, 2021, has reduced the transfer charge by half. During its 203rd board meeting held on September 24, 2021 the Noida Authority decided to cut the transfer of memorandum (TM) fee for the residential category, which includes plots and flats, from 5% to 2.5%.

For the uninitiated, resale is the process under which an existing property owners sells a property that has been allocated by an authority or a builder earlier. This is also known as property sale in the secondary market. Sale of new properties on the other hand is termed as sale in the primary market.

***

Greater Noida Authority cuts transfer charge on resale flats by half

June 29, 2021: In a move that might boost home buyers sentiments and trigger a fresh wave of property purchases in this affordable housing market, the Greater Noida Authority has reduced the transfer charge it imposes on the purchase of resale properties by 50%. In a board meeting on June 26, 2021, the Greater Noida Industrial Development Authority (GNIDA) reduced the transfer charges on resale residential land and built-up houses, from 5% of the transaction value to 2.5%. On resale of flats in group housing societies of Greater Noida, the authority has capped the transfer fee at 1%. Similarly, transfer charges on resale industrial, institutional and commercial transactions have been slashed from 10% of the property value to 5%.

FAQs

What is TM in Noida Authority?

The TM charge or Transfer of Memorandum is a charge that the Noida Authority imposes on transfer of a resale property.

What is the stamp duty a buyer has to pay to buy a flat in Noida?

Stamp duty on property is 7% of the total value of the property in Noida.

What is the stamp duty a buyer has to pay to buy a flat in Greater Noida?

Stamp duty on property is 7% of the total value of the property in Greater Noida.

Is TM charge applicable for homes bought from builders?

No, TM charge needs to be paid to the Noida Authority only for resale flats.