Property Registry Rule: Know these 4 important things before registering the land, you will save lakhs of rupees..

Property Registry Rule: Property registration is an important process in which legal documents are prepared and property ownership is recorded in government records. This can be an expensive task, in which registration fees can be up to 5-7% of the total value of the property. For example, this cost can come from Rs 2.5 lakh to Rs 3.5 lakh on a property worth Rs 50 lakh. However, this cost can be reduced by adopting some methods, which can save you a lot. Saving in registration can prove to be financially beneficial.

Pay registry charge on market value-

Many times, the market value of a property is less than the purchase price. Stamp duty is higher on higher circle rates, while stamp duty is lower on market value. In this situation, to save on stamp duty, you can appeal to the Registrar or Sub Registrar for stamp duty on the market value. This type of appeal can be made under the State Stamp Act. If the registrar is requested to levy stamp duty on the market value, the sale deed remains pending until registration is done. The registrar or sub-registrar refers your case to the DC, who assesses the stamp duty based on the market value. In this case, you, as the buyer, can benefit from saving on stamp duty.

Registration of undivided land-
Registration of undivided land is possible in future construction projects where the buyer enters into two agreements with the builder: a sales agreement and a construction agreement. The sales agreement is for the undivided portion of the property, which includes land and construction costs. Buying undivided land is cheaper as there is no registration fee for the built-up area. For example, in a Rs 50 lakh apartment, if the undivided land is worth Rs 20 lakh, you will have to pay the registration fee and stamp duty only on Rs 20 lakh.

Rebate to women buyers-
In many states, women buyers get a rebate when they are involved in a joint or single purchase. Under this rebate, according to the Delhi government, less registration charge has to be paid according to the built-up area on property registry on property registry in the name of a woman. This can save up to 1.5 lakh tax every year. (Rebate to women buyers)

Benefit of the local stamp act-

Since land is a state subject, the income from the registry goes to the state governments, and the law of every state is different. Before getting the registry done, make sure to know the Stamp Act of your state. Many times, state governments give an exemption in the registration fee, so money can be saved by getting the registry done during the rebate. In Maharashtra, Punjab and Uttar Pradesh (UP), there is no stamp duty on gifting property to blood relatives, keep this rule in mind.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.