2% more for registration of new flats in Tamilnadu from October
Buying of new apartments in Tamilnadu to cost 2% more, as the state has made it mandatory for construction agreements to be signed between builder and buyers. Till September the government charged 5% for stamp duty, 2% as surcharge (for development of local bodies like corporation and panchayats) and 1% as registration fees for Undivided Share of Land (UDS) in sub-registrar offices. Thus for registering a new apartment (under construction) the buyer had to pay 8% of the value of UDS at the time of registration.
From October onwards the buyer will have to pay an additional 1% stamp duty and 1% registration fees on the cost of construction. So the new revised charges will be 6% for stamp duty and 2% as registration fees and 2% surcharge. The construction agreement has to be registered at the sub-registrar offices within 120 days of signing the agreement. Without a registered construction agreement, UDS will not be registered.
The construction agreements that are signed on or before 30th of September will not fall under the new amended Act.
CREDAI - (Confederation of Real Estate Developers' Association of India) Tamilnadu chapter president - N. Nandakumar said, "In terms of cost, there is an increase which customers have to bear. But there is a reward in the form of better title for their assets". Until now, a registered deed used to be created for a new building only when resale of the property took place. Unless the builder or the buyer insisted on registering the property after the completion of the project, the first buyer never used to get a title deed for his constructed immovable house in the state.
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