Flat Buyers to Pay 2 % more for Registration In Tamilnadu From 0ctober 1, 2013

People buying new apartments in the Tamilnadu state will now have to pay 2 % additional registration charges as the state has made registration of construction agreements signed between builders & buyers mandatory.

So, far only the undivided share of land (UDS) was registered at sub-registrar offices, for which the government charges 5 % stamp duty, 2 % surcharge (for development of local bodies such as corporations & panchayats) and 1 % registration fees.

Overall, for registration of a new apartment under construction, the buyer pays 8 % of the value of UDS for registration.

The construction agreement was never registered earlier.

Hereafter, the buyer will have to pay an additional 1% stamp duty & 1% registration fees on the cost of construction.

Also, the construction agreement has to be registered at sub-registrar offices within 120 days of signing the agreement.

 Without a registered construction agreement, UDS will not be registered. Necessary amendments have been made to the Registration Act and the new rules came into effect on October 1, 2013.

Construction agreements signed till September 30, 2013 will not fall under the purview of the amended Act.

However, developers and housebuyers who claim exemption from the additional registration charges will have to provide proof before sub-registrars to show that their agreements were signed before October 1, 2013 said an official.

Confederation of Real Estate Developers' Association of India (CREDAI) Tamil Nadu chapter president Mr. N. Nandakumar said, "In terms of cost, there is an increase which property buyers have to bear. But, there is a reward in the form of better title for their assets".

Till now, a registered deed used to be created for a new building only when resale of the property took place.

A first buyer never used to get a title deed for his/her constructed immovable house in the Tamilnadu state, unless the builder or /  the buyer insisted on registering the property after completion of the project. The only registered document one used to hold was the one for the UDS.

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