Legal charges are levied on the purchase of property, and it is better to know these before buying property. These charges authenticate the sale agreement and maintain a record of the property according to the Indian Stamp Act 1899. The state government has the authority to decide, fix, and levy charges that are collected towards stamp duty and registration.
In Bangalore, the registration charge is 1% of the value of the property. The added cess on BBMP, BMRDA, and village areas is 10% of the stamp duty. BBMP and corporation surcharges are 2% on the stamp duty. BMRDA and other surcharges are 3% on the stamp duty.
Stamp duty is calculated on the property’s age, buyer’s age and gender, type of property, location, and available amenities. Stamp duty is paid to the government in order to duly transfer the property to the name of the buyer. As per the Registration Act, 1908, registration charges are paid to the government to maintain the records in the registry.
In the case of multistorey apartments, the super built-up area is used for the calculation of these charges. Charges on individual houses are calculated based on the total constructed area. In the case of plots, the area of the plot in square feet is multiplied by the predominant guideline value.
Stamp duty and registration charges are applicable on all properties, whether they are under construction, completed, or being resold. Stamp duty is payable on the property value or the circle rate, whichever is the higher value. The circle rate is the price of real estate in an area that is regulated by the government.
These charges ensure that the property is legally transferred to the buyer upon purchase. Several documents must be submitted at registration, including the sale agreement, sale deed, khata certificate, sanctioned building plan, etc.
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