New Delhi: The Noida Authority has reduced the transfer charges on the purchase of a new property by 50%. With the latest revision, the transfer charge/fee on the purchase of a new property in the residential category, which includes plots and flats, has been reduced to 2.5% from 5%.
The decision to slash the transfer charges was taken by the Noida Authority in its 203rd board meeting held on Friday, September 25. The step has come after the Uttar Pradesh government recently ordered the authority to slash the charges to boost the sales of residential category properties.
For those uninitiated, the transfer charge is one of the fees that a buyer needs to pay to the authority at the time of registry of the resale plots or flats. The new transfer charges will be applicable on all the properties allotted after 2011 by the authority.
The cutting down of transfer charges on the registry will also make buying resale flats and plots more affordable than ever. After the end of the board meeting, the Chairman of Noida Authority Sanjiv Mittal said that the department has reduced the TM fee to provide relief to residents and those who want to buy a property in the industrial town.
How do transfer charges work?
Transfer charges are levied at the time of the registry of a resale property. Previously, buyers had to pay transfer charges at a 5% rate. This means that if a buyer is buying a property for Rs 10 lakh, then Rs 50,000 will be charged as transfer charges.
However, with the latest revision in the charges, buyers will have to pay 2.5% of the property price as transfer charges. In the above-mentioned scenario, transfer charges will now come down to Rs 25,000.