So far, a new home buyer only registers the title for the undivided share of the area, for which you have to pay 8% registration fee. (stamp duty – registration fee) In a letter from the Chief Secretary to the State Government to the Comptroller General of Registration on March 18, he stated that with respect to the development of a large building or apartment complex, the proposed allottee, which intends to acquire the apartment, an agreement for the sale of the UDS of land with the owner (the seller) of the land and a separate construction agreement with the developer of the building. Both agreements are registered in accordance with applicable legislation. Under the new guidelines, the registration of the UDS would not be maintained if the registrant does not file the construction contract. In the event that the registrant claims that he or she declares the UDS but does not perform any construction, the recorder will check the property before registration. With 4 per cent registration fees and 7 per cent stamp duty, Tamil Nadu has one of the highest registration and stamp fees among Indian states. It is important to register the construction contract at the same time as the sale agreement of the undivided share of the state. The government amended the Registration Act to make it mandatory to register documents such as the power of attorney and the construction contract from December 2012. However, the bill amending the stamp law, which facilitated the collection of new taxes, did not receive approval from the President until September 3. The move follows in the wake of a few under-registration points that require the registration of the built-up area with the country`s UDS, which causes great distress, psychological torment, in addition to the fact that the Allottees entail huge and unnecessary costs for the registration of built land that is not authorized by law. The land/apartment must be registered in a sub-registration office and the following documents are required for registration: Details of the construction agreement and the date of the first payment to the contractor should be included in the UDS deed of sale. If the registrant put the two agreements together, construction and UDS, the OAR would first register the construction contract and include the details in the UDS sales agreement. Home buyers who have so far only registered the undivided share of the land (UDS) will also have to declare their construction contract in the future and pay an additional 2% charge for this.
C.H Gopinatha Rao, former national president, Institution of Valuers, welcomed the move and said it would help protect the interests of owners and developers. “When used housing is sold, registration fees depend on the value of the land and land to be built. The UDS is only registered for new dwellings. Today, the sale of old and new homes is almost on an equal footing,” he added. For a 1,000 sqm apartment with 300 sqm of UDS and a price of 40 Lakh, the buyer has so far only paid for the registration of the UDS. If the reference value of the property Rs.1,500 per sq. ft, calculated the registration fee, which amounts to 8 percent, including stamp duty, 8 percent, to 36,000 Rs. (Rs.1,500 X 300sq.ft) X .08). Under the new rules, the buyer must register the construction contract for the residual value of 35.5 Lakh. The additional registration fee – 1% for stamp duty and 1% for registration fees – would be Rs.