Stamp Duty Is Mandatory During the Registration of the Property
Jun 02, 2017 Legal Guidance
Home buyers are required to pay the stamp duty by themselves. The financial institutions and banks offer the home loan up to 80 percent of the total amount of the property. The rest 20 percent has to be paid by the buyer which includes the registration charges. This registration and stamp duty charges are mandatory for the buyer to pay. These encapsulate the transfer of the immovable property. Stamp duties differ from state to state. For example in Maharashtra, the stamp duty is 7 percent of the transactional amount or the ready reckoner value, in case the transactional value is lower than the reckoner value.
If the developer offers discounts
To lure in buyers and to help ease the cost of the stamp duty charges, some developers offer discounts in the stamp duty. The either offer to pay the half of the stamp duty amount or allowing the buyer to pay half of the stamp duty amount at the time of registration and the rest later.
If the developer is offering any discount in the stamp duty, the clause should be mandatorily mentioned in the sales agreement. Above all, the title of the house, the date of the sale deed should be clearly mentioned in the sales agreement.
According to the experts, the stamp duty must be paid at the time of execution of the document or before that or immediately thereafter. If the document is properly stamped then it becomes impermissible as evidence in case of any dispute between the builder and the buyer. According to the law, it is the responsibility of the buyer to make sure that everything is properly mentioned in the document and that it is properly stamped. The legal jargons can be difficult to understand sometimes for the common man. Therefore, it is better to hire an attorney to help you go through and understand all the legal obligations.
Full waiver of stamp duty:
The payment of the stamp duty is generally buyer’s responsibility. But some builders offer to pay the stamp duty by themselves, to lure in more buyers.
The main question is whether the buyer should let the developer pay the entire stamp duty? To answer that, yes a buyer can let the developer pay the entire stamp duty given that the buyer properly examines the title of the property and the stamp duty provision offered by the builder, in the agreement. Stamp duty is paid to get the name of the property transferred in the name of the buyer.
The registration of the document which transfers the name of the property to the buyer is compulsorily required to be stamped under the registration act, 1908. This act is applicable throughout the country. Without the registration, the sale and purchase of the property are incomplete.
If the developer offers discounts
To lure in buyers and to help ease the cost of the stamp duty charges, some developers offer discounts in the stamp duty. The either offer to pay the half of the stamp duty amount or allowing the buyer to pay half of the stamp duty amount at the time of registration and the rest later.
If the developer is offering any discount in the stamp duty, the clause should be mandatorily mentioned in the sales agreement. Above all, the title of the house, the date of the sale deed should be clearly mentioned in the sales agreement.
According to the experts, the stamp duty must be paid at the time of execution of the document or before that or immediately thereafter. If the document is properly stamped then it becomes impermissible as evidence in case of any dispute between the builder and the buyer. According to the law, it is the responsibility of the buyer to make sure that everything is properly mentioned in the document and that it is properly stamped. The legal jargons can be difficult to understand sometimes for the common man. Therefore, it is better to hire an attorney to help you go through and understand all the legal obligations.
Full waiver of stamp duty:
The payment of the stamp duty is generally buyer’s responsibility. But some builders offer to pay the stamp duty by themselves, to lure in more buyers.
The main question is whether the buyer should let the developer pay the entire stamp duty? To answer that, yes a buyer can let the developer pay the entire stamp duty given that the buyer properly examines the title of the property and the stamp duty provision offered by the builder, in the agreement. Stamp duty is paid to get the name of the property transferred in the name of the buyer.
The registration of the document which transfers the name of the property to the buyer is compulsorily required to be stamped under the registration act, 1908. This act is applicable throughout the country. Without the registration, the sale and purchase of the property are incomplete.
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