In Tamil Nadu, now property buyers could get their documents registered, even if the values quoted in the documents didn't comply with the guideline value fixed by the government authorities.
The guideline values so far have been an informal reference point with no statutory backing, the authorities couldn't stop the registration of the undervalued document. Their only choice was to refer the issue to the Special Deputy Collector - (SDC) Registrations who could reexamine the guideline value, but this could be followed with a protracted legal battle. Soon, this practice will be changed.
Sales document must reflects
the guideline value..!
Once the revised guidelines are formally approved by the Tamil Nadu government, the parties in a transaction are bound by the guideline value. Unless the sales document reflects the guideline value, or the market value if it is higher, the document won't be registered. Only a pending registration number is issued, and the document is referred to the Special Deputy Collector for guideline value fixation.
But the transaction could be concluded, registration done, and the dispute wouldn't be reflected in the EC (Encumbrance Certificate). So, for years, the property could actually change hands, even with the dispute pending. But now, with changes in Section 47 A of the Indian Stamp Act, 1899, by Tamil Nadu Act 13 of 2008, notified in June 2010, the guideline values gain teeth, and they are now market value guidelines of properties.
Every year guideline value increase..!
Another one major changes proposed. From 2012, regularly every year guideline values will be increase, more frequently if needed, for areas where market values are growing fast.
This would help the government tap the full potential from this revenue source and also reduce the financial burden to the people.
Also Read
Documents Pending : TN Govt announces Samadhan scheme
The guideline values so far have been an informal reference point with no statutory backing, the authorities couldn't stop the registration of the undervalued document. Their only choice was to refer the issue to the Special Deputy Collector - (SDC) Registrations who could reexamine the guideline value, but this could be followed with a protracted legal battle. Soon, this practice will be changed.
Sales document must reflects
the guideline value..!
Once the revised guidelines are formally approved by the Tamil Nadu government, the parties in a transaction are bound by the guideline value. Unless the sales document reflects the guideline value, or the market value if it is higher, the document won't be registered. Only a pending registration number is issued, and the document is referred to the Special Deputy Collector for guideline value fixation.
But the transaction could be concluded, registration done, and the dispute wouldn't be reflected in the EC (Encumbrance Certificate). So, for years, the property could actually change hands, even with the dispute pending. But now, with changes in Section 47 A of the Indian Stamp Act, 1899, by Tamil Nadu Act 13 of 2008, notified in June 2010, the guideline values gain teeth, and they are now market value guidelines of properties.
Every year guideline value increase..!
Another one major changes proposed. From 2012, regularly every year guideline values will be increase, more frequently if needed, for areas where market values are growing fast.
This would help the government tap the full potential from this revenue source and also reduce the financial burden to the people.
Also Read
Documents Pending : TN Govt announces Samadhan scheme
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