Tamil Nadu Flat Buyers to pay  registration charges at 9%

Tamil Nadu government has done away with the three-year-old practice of separate registration of undivided share (UDS) of land and construction agreement.

From 2023 August now on, in cases of completed constructions, there shall be only one combined sale deed, entailing a stamp duty & flat registration fee of 9%

This means, a flat buyer will end up paying about 50% more towards registration charges. Since 2020 registrations were being done in two parts - one for UDS at 9% registration fee & the other for construction agreements for 4% fee.

For example, in case of a flat costing Rs. 1 crore, a flat buyer would have paid total registration charges of Rs. 6 lakh if he had shown Rs. 40 lakh as UDS value and Rs. 60 lakh as building value. For the same flat, he will pay Rs. 9 lakh as fee now - a flat 9% fee for Rs.1 crore.

 "Earlier, builders / promoters were registering UDS land and construction agreements even after obtaining completion certificates. This move will give legal safety to the purchaser," said B Jothi Nirmalasamy, secretary, commercial taxes and registration department.

CREDAI  also expressed concern over the flat registration cost of 9% on the total cost of the apartment. The hike would affect property purchasers who have already purchased the flat but not yet registered.

 

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