Single sale deed based stamp duty for flats from Dec 1

CHENNAI: Come December 1, buying a flat with an undivided share (UDS) will not cost you that ‘extra’ on registering sale deeds of proportionate UDS and construction for the built-up area. The State government has decided to forgo the practice of registering sale deeds of UDS and construction agreements for the built-up area in the case of flats/apartments and introduce a single sale deed based on the composite value of the building.

To encourage buyers and promote realtors, who placed a request to this effect, the government has decided to reduce the stamp duty for such instruments. As per the new system, the stamp duty for the first sale of a flat/apartment with a market value up to Rs 50 lakh would be reduced from the existing 7 per cent to 4 per cent. In the case of flats between Rs 50 lakh to Rs 3 crore, the stamp duty would be reduced from 7 per cent to 5 per cent.

The concession would be applicable only to the flat/apartment conveyed with a proportionate undivided share of land and only for the first sale of the flat/apartment and not applicable for resale. The buyers can assume direct ownership by registering sale deeds.

The practice of allowing the registration of resale of flats based on the previously registered construction agreement, which has been allowed by the Registration Department hitherto, would be dispensed with.

Govt to fix composite value

A senior registration official told DT Next on condition of anonymity that it has been a practice of sellers to only sign and provide construction agreements with the buyers. “The construction agreement does not confer the ownership rights on the buyers. The new system would ensure ownership rights of buyers are absolute.

“Buyers cannot unilaterally fix cost of built-up area. The registration can be done only based on composite value fixed by government. It will increase revenue for government even as it helps buyers save on stamp duty,” the officer added.