CHENNAI: The new fee structure involving a ‘reduction’ in registration charges and stamp duty, set to apply from December 1, will actually cost prospective home-buyers in the state more.
Home-buyers and developers had hitherto been registering a sale deed of undivided share (UDS) of the land and a construction agreement for the built-up area in case of flats/apartments. While the UDS carried a 9% fee – 7% stamp duty and 2% registration fee – the construction agreement carried 4% fee – 1% stamp duty and 3% registration charges. Under the new structure, there will be a single sale deed for the composite value of the building including the UDS as well as the construction cost and carrying a flat registration fee of 7% of the total value.
A buyer who spent 5.35 lakh in registration charges for a 1 crore flat with a UDS value of 25 lakh and construction cost of 75 lakh will now have to shell out 7 lakh as registration charges at a flat of 7% of the total flat value. Similarly, a person buying a 50 lakh apartment will end up spending more than 40,000 additionally on registration charges.
The state government notification has made only two categories of properties carrying two different registration fee structures. The stamp duty for a flat/apartment with a market value of up to 50 lakh will be reduced from the existing 7% to 4%. Buyers shall pay another 2% of the property value as registration fee. Together it will be 6% of the property value.
The second category is for a flat/apartment valued between 50 lakh and 3 crore. In this case, the stamp duty has been reduced from 7% to 5%. But, along with the 2% registration fee, the buyer will spend 7% of the total value of the property. The notification is, however, silent on flats valued at more than 3 crore.
When contacted, an official in the state registration department said that the latest move is in sync with how properties are registered in other states. A single deed of a flat/apartment including both the land and the building is registered taking into account the composite value of the land and the building, he said.
