Property Registration In Bangalore & Property Registration Charges
Before going into the details of plot registration, there are a few terms you must know. There is a lot that has to go on when you decide to buy a property or land than a normal business deal where you get a plot of land in exchange of money.
Registration fee – It is a small percentage of the total cost of the plot paid by the buyer to the state government for registering the property on his name.
Stamp Duty – It is a small percentage of the total plot cost imposed on the buyer during submission or recognition of the required documents. It is paid to claim that the submitted documents are valid
Property Guideline value – It is the minimum cost of your land estimated by the state government. Stamp duty in Bangalore, in both urban and rural settlements, is 5.6% of the saleable value of the plot. The registration fee is, however, 1% of the saleable value. The saleable value of a property, in simple ways, is the product of the property size and the guideline value. In some states, women and senior citizens get a discount on both registration fee and stamp duty charges.
Besides the total cost of your plot/property, there are a number of factors that affect the property registration fees and stamp duty charges.
Type of property: The property being old or new has an effect on its registration fees and duty charge, as in a new property on the market will obviously be more expensive than an older property. Hence, directly affecting the price of the charge. The charges also differ in accordance to the use of it, i.e. commercial or residential. Commercial land is used with a business motive and a number of extra facilities such as a clubhouse or escalators, swimming pool etc. add on to the charges, unlike residential lands. Hence, registration for commercial land is also more than that of residential.
Location: The location has a great effect on the registration fees as well as the stamp duty charges. The charges are different in different states and they also differ in accordance with the neighboring area being urban or rural. Urban settlements generally have a higher registration fee.
Transfer: The registration fee also depends on if the property is either transferred to you by an unrelated person/non-family member or by a family member as a ‘Gift’. It is higher for the former as compared to the latter.
Documents Need for Plot or Property During Plot / Katha Registration process In Bangalore
Since buying and registering a plot or property is a legal process under state government, there a few documents that are needed to be submitted for the validity of the transaction
- All title documents of land owner
- Khata certificate & extract from BBMP
- Absolute sale deed in present seller’s name
- Latest tax paid receipt
- Encumbrance Certificate from date of purchase till date
- Agreement of sale & construction executed by developer in favor of seller
- Possession/occupancy certificate from builder
- Sanctioned building plan
- Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder
- A Copy of all registered previous agreements (in case of re-sale property)
- RTC (Records of Rights and Tenancy Corps) or 7/12 extract
- Conversion Order issued by the concerned Authority
- Registered development agreement (If in case of Joint Development Property)
- Power of attorney/s if any
This is for information only, the need of documents may vary according to the type of property and it’s condition
The process of plot/land registration is as follows
Check details for safety assurance: This process approximately take 5-7 business days and costs about 10,000 rupees. Before the property is sold/ transferred, a few things must be checked for the buyer’s safe transactions.
- The documents must be thoroughly checked as to ensure that there are no loans or due bills as on the date of purchase. (for this, last 30 years’ records, ownership status must be checked)
- The seller must be authorized to sell the property and the ownership document must be in the name of the owner (issued by the revenue record department.
Final deed preparation: This process takes about a week and is done on green legal paper with the date and place left bank. The document is sent for stamping and is made by the buyer’s lawyer.
Payment of stamp duty: This process does not take more than a day. The buyer pays the stamp duty charges at the designated bank. After the payment, the bank issues a receipt and marks the front page of the sale deed with ‘stamp duty received.
Final Execution: In this process, the buyer, seller and two witnesses sign on the sale deed at the sub-registrar office, and a distinct number is generated for documentation. The reader of the sub-registrar calculates the required registration fee which is to be deposited with the cashier in cash/DD against a receipt. After all the formalities the documentation is handed over to the buyer. It is better to take an agent to speed up the process in at the sub-registrar office
The document includes
- Two passport size photographs and a form of ID, each of the buyer, the seller and the two witnesses
- Copy of PAN cards and Certified true copies of Certificate of Incorporation of both seller and buyer, in case of a company and not an individual buyer
- Copy of the latest property register card to ensure no government ownership of the plot.
- Copy of the municipal tax bill to indicate the year in which the property was built/constructed.
- Change in the title: This is the longest and more complex process than the others and must be done with the assistance of a lawyer. After registering, the buyer needs to change the ownership title of the property to his name to enable himself as the new owner and tax payer for the property.
For this change you need to submit an application for mutation (change), an affidavit and a copy of the final sale deed in the office of City Survey and Land Records Department. After the request submission, the tax on the property is calculated and the letter of mutation is issued for the buyer.
If you are facing any difficulties and dragging of time to register your property in bangalore, visit VSK & Co to take charge of completing your property registration in a very hassle-free way with more than 14+ Years of experienced property professionals.