Now, Greater Noida and Noida home buyers will get relief and complete protection for its investments. The UP government has asked its authorities to be part of the escrow account with builders.
Noida, December 19: Builders have to open escrow account with buyers as part of the new real estate Act. Escrow account will ensure that the funds or money collected is used for that specific purpose alone.
To give homebuyers some relief, assurance that their investments are safe, Uttar Pradesh is the first state to rope in authorities. This will also reduce the corruption levels in the government agencies. Government agencies such as Yamuna Expressway Development Authority, Greater Noida Authority and Noida Authority will have to open escrow accounts with real estate developers.
This will allow agencies to either use the future payments made by the buyers or refund the money to home buyers that would get deposited in escrow account, to complete the real estate development. This will lead to timely completion of the real estate projects and it would also increase the trustworthiness of the project. And, home buyers will not hesitate to pay their dues.
Most of the real estate developers in Greater Noida and Noida are happy with this recent announcement by the U.P Government. There are also many real estate experts who believe that this move by the state government will offer protective shield to the homebuyers.
The fascinating part of an escrow account is that it offers inbuilt safeguards for homebuyers in Noida and Greater Noida. In case, if real estate developer is unable to start construction work and it is assumed that you have paid only 10 to 20 percent of the price of the apartment as booking amount then surely you will get a considerable part of their money back. This recent policy also describes that you can settle the remaining amount with builder, if the refund is not enough to pay back the entire amount.
U.P Government has taken a right move by asking authorities to be part of Escrow Account with Builders. This will certainly help home buyers in many ways. Let us know your comments on this, share your responses with us by commenting below.
Author: Akash Singh
Akash Singh is a passionate free lance writer based in Noida. He’s designed the content for various reputed online financial and real estate portals. He has completed his Bachelor’s in Management from Mumbai University and has earned his MBA International Business (HR) Degree from prestigious Amity University. He loves to invest his time in the laps of nature, and enjoys life to the fullest.