The land registry procedure is simple by paying only stamp duty, i.e. 8% (including registration fees) of the total reference value of the land. 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. 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) Who has to bear stamp duty and registration fees when they are opposed to the construction contract? If it is the buyer or the owner Now, you must ask yourself what the risk is in such an arrangement. The reason is that the value of the sales contract is usually equal to 1/2 or 2/3 of the total value of the consideration. A bank can pay the amount corresponding to the registration value after adjusting the seller`s contribution by 20%. A contractor receives almost 2/3 in the initial phase. A project may be delayed in such cases. Another possibility is a lack of title.
In other words, if something goes wrong, then the buyer will be in big trouble. Therefore, if you want to register under the property of the construction, you are very careful. The land/apartment must be registered in a sub-registrar office and the following documents are required for registration: Support to thousands of home buyers in Chennai, the registration service in Tamil Nadu specified that when registering an apartment, only the un distributed share of the real estate stamp duty and registration fees and does not attract the built-up area. Since 1 October, the Tamil Nadu government has made it mandatory to register a construction contract at the same time as the sale of UDS, after states such as Karnataka. Filers now have to pay 2 per cent of the additional construction costs. Construction costs include apartment construction costs, parking, club fees and electrical panel fees, and connection to water and wastewater. “Sign up under building land to get a home loan,” a bank employee told one of my clients. My client was confused. It was under the idea that property under construction could only be registered at the time of possession. Too late, banks insist that borrowers register before owning real estate when you use a home loan.
Although it is mandatory to register construction real estate under subsidy schemes, it is at the discretion of the bank. From the buyer`s point of view, it is a mixed bag. Depending on the case-to-case basis, it may be advantageous to register under construction real estate.