The real estate market has been on boom since past few decades. Multiple developers have introduced their luxury projects at affordable prices in India. Considering the overall per capita income, most of the people cannot afford luxury houses whether they are in metro cities or the lower tears. This raises the need for affordable houses in India, which leads to introducing more and more real estate projects.
The realty is one of the everlasting businesses in India, and the demand for new homes is always increasing. Buying a new home is like a dream coming true for almost all of us. While purchasing affordable houses in India, people often think of decorating in the way we want and living happily with our family without any obligation. But, the transaction of purchase is not considered to be legal unless and until the contract takes place. When the title of any property is being transferred from one person to another, the property stamp duty is charged by the state government. The registration fee is levied on the documents and is mandatory for all under Section 3 of the Indian Stamp Act of 1899. The stamp duty is about 5% of the market value or the agreement value of the property when the Mumbai suburbs and surrounding is considered.
Once the stamp duty is paid, the contract documents have to be registered to the government under the Registration Act of 1908, which is done by the Sub-registrar. You need to register your property within four months of the date of implementation of the contract. Usually, the registration fee is levied as 1% of the agreement value of the property or the market value, whichever is greater. However, the slab for maximum registration fee is Rs.30,000.
Once the deal takes place, the contract documents have to be printed on a single side of the paper. You need to provide two photocopies (more, if demanded) of your agreement to the sub-registrar. Both seller, as well as the buyer, have to be present at the time of registration, with two witnesses on each side. The proof of stamp duty and your nationality also need to be submitted. Once all the procedure is complete, a receipt will be issued for the charges you have paid.
Bearing in mind the customer needs, the developers take care of all the hassles that a customer is likely to face. Stamp duty and registration is the thing that becomes a bit hassle for the new home buyers. Nowadays, the developers have already ready with the setup aiming the customer shall not face any irritating query. Furthermore, the stamp duty process has become easy due to three different modes of paying it. The method of on-judicial stamp papers is the traditional method of paying the stamp duty. These papers are usually purchased from a licensed vendor. The authorised bank uses the franking method that the stamp is fixed on the standard printed paper using the franking machine. This method may take some extra charges levied by the bank. Lastly, the stamp duty can also be filed on the website of Stock Holding Corporation of India Limited.
In short, the stamp duty and registration of the flat is necessary, and paying the fees is not a hassle these days.