Registration Charges For Construction Agreement In Chennai

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. View of the under-built apartment complex in Perambur, Chennai. Picture: V. Ganesan. | Proof of the photo: V_GANESAN The cost of registration is 2% (1%, stamp duty 1%registration fee) of construction costs. In May 2020, TN`s registration service clarified that new and ready-to-use housing and buildings will not have to pay stamp duty and registration fees. This applied only to the first sale of the land and only the undivided share of the land (UDS) would be subject to stamp duty and registration fees, not to the super-built area. 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 construction contract is registered according to the legal provisions with a stamp and a registration fee of 2 percent on the value of the contract it had.

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. On May 11, the Inspector General of Registration adopted a decision stating that “when a document is submitted only for the registration of a (first) sale of an undivided title, the filers are advised not to require the registration of the building in the subject of the sale document or to insist simply because the certificate of completion was issued by the competent authority of the project.” Any real estate investment agreement is incomplete without these overheads being paid. Stamp duty and registration fees differ from state to state, mainly by the market value of the property, property status and whether it is commercial real estate or housing. Once the stamp duty is paid, the property must be registered with the under-registration office in order for the transaction to be completed.

Category: Uncategorized