August 7, 2023: The Tamil Nadu Government has discontinued the three-year-old practice of separate registration of undivided share (UDS) of land and construction agreements, according to a TOI report. According to the new guidelines, in case of completed construction, there shall be only one combined sale deed, including a stamp duty and flat registration charge of 9%.
This is the third fee hike by the TN registration department in recent months. The state government revised the guideline value and registration charges of 20 services, including construction agreement and power of attorney.
How will registration charges of 9% impact homebuyers?
The new move will lead to increased costs for a homebuyer, who will have to pay 50% more towards registration charges for their property. Since 2020, property registration was carried out in two parts – one for UDS at 9% registration fee and the other for construction agreements at a fee of 4%.
For example, for an apartment costing Rs one crore, a buyer would have paid a total registration fee of Rs six lakh if he had shown Rs 40 lakh as UDS value, Rs 60 lakh as building value. Now, he will pay Rs nine lakh as the total charges, 9% of Rs one crore.
Thus, the move that will require a single documentation will impact the overall cost for property buyers. It will also impact those who have purchased a property but have not yet registered their property.
See also: Stamp duty and registration charges in Tamil Nadu 2023
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