The property registration charge, which usually on average ranges between 5-10%, frequently eats up a substantial part of a home buyer’s budget. Buying a home is everyone’s dream but, with a lack of money, it is impossible to get a dream home. If you succeed in saving any part of the charge, it will save money and help in raising your home-buying budget. It will also boost your interior budget, reducing your home loan outstanding or utilizing it any other way you prefer. Below is the list of 4 ways to legally save on property registration charges.
By appealing to the registrar/sub-registrar, a way of legally saving on property registration charges:
Stamp duty and registration rates are to be calculated on the actual transaction price. When the market prices change at periodic intervals, the government keeps on revising the circle rate. This has happened many times in the recent past when the market rate was less than the circle rate. When the market rate is less and paying the stamp duty at a higher circle rate puts a buyer at loss. However, there is a way you can save on stamp duty because not many buyers are aware. Under the state stamp act, they can appeal to the sub-registrar for conviction of market value.
Registration at undivided share:
The purchase of undivided shares is widespread in the land aggregation process. When the buyer signs two agreements with the builder – the sale agreement and the construction agreement. The sale agreement is for undivided shares (UDS) in property, i.e. the buyer’s share only in the common area. A specified share would be required to be crystalized by going for metes and bound partition for any utilization. Hence, the registration of a construction agreement is not compulsory in every state; it is only possible where the agreement is not compulsory. In some states such as Tamil Nadu, it is mandatory to register both a sale agreement and a construction agreement.
Rebate for female buyers:
If joint/individual purchases by women, many states, including Haryana, Delhi, Punjab, Rajasthan, and UP offer a discount on stamp duty charges. The Delhi government’s official website states, the stamp duty rate is 4% for women and 6% for male buyers.
Local stamp act:
Although rules vary from state to state, it’s reproving to review the local stamp act / hire a professional to do the job. The cost of the property can occasionally be reduced by state regulations, which sometimes, state rules are such that you can save on property registration charges.
In Maharashtra, most clients don’t know if they sell the property within one year of buying from a developer, the property registration charges are applicable only to the net profit. On the property, if gifted to a blood relative, no need to pay stamp duty. For Example, Maharashtra, Punjab, and Uttar Pradesh.