As per section 17 of the Registration Act, 1908* property registration is a simple process, where, after completion of processes and submission of all documents you legally become the owner of the property. To simply put it, you can legally use or dispose of the property. However, property registration involves a process on the completion of which you’re one step closer to getting access to your dream home.
These steps include-
1. Verification of the title of the property
2. Estimation of the property value
3. Preparation of the stamp papers
4. Getting the sale deed ready
5. Payment of stamp duty & registration charges
6. Approach the sub-registrar for registration
7. Documents submission
8. Completion of registration
*The act applies to the entire country except Jammu & Kashmir.
When you have narrowed down your dream home in your dream locality, you must remember to register your property as it is necessitated by Indian law. As per Section 17 of the Indian property Act of 1908, property registration is a must as it legitimizes your ownership of that property. In case you forget to register the property in your name, the seller who is the seller from whom you have purchased the property will remain the legal owner and only he/she will be entitled to the rights, interests, and bills related to the property and not you. Hence, you must abide by this law and register your property.
Buying a house can be overwhelming as it requires a lot of financial planning and knowledge about the many procedures and charges related to buying a house. From selecting the best home loan plan for your financial bandwidth to paying your down payment and starting the property registration, buying a home comes with a lot of steps. After possession, it is imperative that you register the house in your name, and in order to do this you need to pay the stamp duty. The Government charges a tax when a buyer wants to register a house in their name, and it varies from state to state, usually, it is 1% of the property price. The Maharashtra government has a flat registration fee for properties worth over 30 lakhs which is 30,000 INR.
The entire property registration takes around a week. It starts with the preparation of the final deed which is done by the buyer’s lawyer, and the fee of the lawyer is around 1% of the property price. This process takes about 5-7 days. The buyer also has to pay the stamp duty, this charge varies from state to state, but is usually around 5% of the true market value of the property. The stamp duty in Mumbai is 5%. Once the payment is made, the bank issues the receipt and acknowledges the payment, this process does not take more than a day.
Mumbai offers the luxury of property registration online. To do so, you need to find out the circle rate to decide the actual value of the property you are about to purchase. On the basis of that, you can use an online stamp duty calculator, to figure out the registration and stamp duty amount. For online flat registration, you can also pay these fees online and get a receipt for the same. However, this appointment can only be made after the payment of the registration fees and stamp duty has been processed. It can be done using net banking, your credit, or a debit card. TDS also has to be paid online, for which you can get a receipt for the same. Your mobile will receive all the OTPs and details regarding your property registration, and the message regarding the registration will also be sent to your phone. However, bear in mind that for the registration of your house you have to mandatorily visit the registration office.
Property tax is the amount that is paid by the owner of any property to the relevant municipal body in the area, periodically. This tax is paid every year and it is charged on every tangible asset that the person owns. These taxes are based on the assessments made by local municipal bodies and they accordingly levy a proportionate tax on the property. The rate of property tax and manner of valuation differs from one municipal authority to the other. There are different ways in which property taxes are calculated. Take the Annual Rental Value System- it levies taxes on the property based on the gross annual rent it can incur if it is let out. On the capital value-based system, the property tax is estimated on the basis of the market value of the property. This system is used in Mumbai, where the property tax is a percentage of the market value of the property. Currently, this rate is 0.316-2% depending on property use.
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