T.N. registration department issues clarification on registration charges. It has clarified that it is a customary practice for the builders to first purchase the land and plan for the construction of apartments thereon to enter into a construction agreement with those looking to purchase the flats.
While registering the documents in the name of the purchaser of the flat in the Sub-Registrar office, the deed of sale of proportionate undivided share (UDS) of the land and the construction agreement were being registered. As per the prevailing rates, a 7% stamp duty and a 2% registration fee on the market value of the property were levied for the documents relating to the sale of undivided share of land.
Before July 2023, for the construction agreement there was a 1% stamp duty and 1% registration fee on the cost of construction. The registration fee alone was increased from 1% to 3% with effect from July 10, 2023.