Property Registration Charges, Land/Flat Registration Charges in India

If you are planning on buying a property in India, apart from the cost of the property you will have to consider the amount you will land up paying to get your property registered. Both property registration fees and stamp duty charges can come up to 7% to 10% of the total property cost, depending on the state the property is in and the type of purchase.

In most cities and towns in India, 1% of the property value is charged as registration fees. Apart from these charges, you will be charged cess and a nominal surcharge.

Property Registration Fees/Charges in Different Cities

What is Property/Land Registration?

When registering a property on your name, the concerned state government will charge you a percentage of the total or registered value of the property which is called a registration fee. According to the Registration Act, 1908, registration fee is charged for registering your property documents in your name. This fee is levied on new property registrations as well as old property transfers.

Property registration fees vary from one state to another. It also depends on whose name the property is going to be registered. The state government gives a discount on the registration fees for women and senior citizens.

Factors that Determine Property Registration/Land Charges

• New Property or Old Property:The type of property you want to register determines the property registration fees. Generally, you will be paying a high registration fee to get a brand-new property registered. This makes sense as the registration fee is a percentage of your total property cost. The total property cost of a new property is usually higher than an old property. The registration charges will be low when you register a not-so-new or an old property as the value of the property would have depreciated from the time it was built.

• Commercial and Residential Property: The property registration charges for commercial properties are higher than the fees charged to register a residential property. This is mainly because commercial properties are built with a business motive and it requires additional amenities unlike residential properties like swimming pool, escalators, and exclusive parking.

• Geographical Factors: The location of the property highly determines the registration fees. If your property is located in metro cities or developed towns, you will be paying a high registration fee. As property registration charges are charged by the state government, the state you are buying the property plays a crucial role as well.

• Type of Transfer: If you are buying a property from non-family member, you will be required to pay the standard registration fee. However, if you are transferring the title of the property to a family member as a “Gift Deed”, the registration charges are very low.

• Amenities: As mentioned earlier, you will be required to pay a high registration fee if you have amenities like a club house, community hall, library, outdoor play area, swimming pool, cargo lift, or a gym. Under the amenities-valuation method, you will be required to pay more for every extra amenity you have in your building.

• Proximity to the Airport, Bus, or Railway Station: Did you know that you will be charged a high registration fee if your location is close to an airport, bus station, or railways station? Yes, thats correct!

• Gender of the Owner: If the property is registered on a woman’s name, the government will give you a discount on the registration fees. So, if you have a female family member, you can choose it get the property registered in her name to reduce the registration charges.

Documents Required

Given below are the documents required to be submitted during property registration:

• Encumbrance certificate valid through the present day.
• Electricity Bill
• Agreement for Registered Development (if it relates to Joint Development Property)
• If any, power of attorney
• A duplicate of all previously recorded contracts (in the event of real estate up for sale)
• ‘RTC’ which stands for Records of Rights and Tenancy Corps.
• Title records for the landowner and a sale deed in the seller's name
• Tax receipts from the previous three months and the most recent bank statements, if there is still money owed from a loan.

How is Property Registration/Land Fees Calculated?

Property registration fees are calculated on the market value of your property. If case you have both the market value and the agreement value of the property, whichever is higher will be charged.

• Apart from the cost or the value of the property, the type of the property, location of the property, gender and age of the owner, usage of the property, and the number of floors in the property all determine the property registration fee.
• Generally, stamp duty officials use Stamp Duty Ready Reckoner to fix the value of teh property. The Stamp Duty Ready Reckoner is published by the concerned state government every year on 01 of January.

Property/Flat Registration Charges Calculator

If you like to know the property registration fee you will land up paying from your pocket before registering it, make use of an online property registration fee calculator. There are many online calculators that allow you to calculate the registration fee within few seconds. All you have to do is:

• Enter basic information like the location of the property and the cost of the property and hit on the “Calculate” button. In no time, you will see the charges on the monitor. You do not have to walk into the nearby register office to find this out. Thanks to technology!

What Happens If You Pay Inadequate Property Registration Fees?

Many people find paying high registration fees taxing. Therefore, they reduce the value of the property and undervalue it while registering. Though, this may seem like a quick fix, if caught, you will land up paying high penalty and might even be imprisoned. By quoting a lesser price, you are not paying taxes promptly and therefore the government suffers revenue loss.

How to Save on Property/Land Registration Charges?

There are many legal ways you can save on property registration fees without undervaluing it.

• Many states offer discount on property registration fees if the property is being registered on a woman’s name or a senior citizen. So, if you have a family member who is a female, go ahead and register it on her name.
• If your property has amenities like club, gym, swimming pool, or library, you will be charged a high registration fee. So, if you are planning to buy a residential property, prefer an individual house with less number of floors as high rise buildings attract high charges.
• Choose the location wisely. If you do not mind buying a property in outskirts, do that. Remember that you will have to shell out more if your property is located in an urban area.
• If you are buying the property from a family member, do not forget to mention it while registering your property. This is considered as a gift deed and a very low fee will be charged in this case.

Talk to a property registration consultant today or walk into the nearby property registrar office for more information on property registration fees.

FAQs on Property Registration Charges in India

1. What is the cost of registering in India?

   The majority of Indian states impose stamp taxes of 5% to 7% of the entire market value of the property and registration fees of 1% to 2%. The state government collects stamp duty to certify your registration agreement.

2. Who covers India's registration fees?

   In most circumstances, stamp duty and registration fees are paid by the buyer of the property. However, in exchange circumstances, both parties to the transaction are responsible for paying the registration and stamp duty fees.

3. How are fees for property registration determined?

   Property registration fees are often determined as a percentage of the transaction value of the property or the value set by the government, whichever is larger. The appropriate percentage varies from state to state in India and may also be influenced by the location and type of property (agricultural, commercial, or residential).

4. Is it possible to register my home online?

   Most states need buyers to go to the sub-registrar's office in order to officially register the properties. In order to assist landlords in registering their properties online, certain states have created services. To provide hassle-free and timely services, this is done. These online tools allow for the registration of both plots and flats.

5. What happens if I fail to register the land?

   Despite acquiring ownership of the property, the owner still runs the danger of losing it because unregistered properties have no legal standing. Additionally, a sale deed that has not been registered will not be accepted in court as evidence.

6. After the sale deed is created, by when should I get it registered?

   Within four months of being formed, the deed must be registered. The period is measured starting on the day the deed was executed.

7. Should the buyer or seller be present during registration?

   During registration, the buyer, the seller, and two witnesses apiece must be present in the sub-registrar's office. If either the buyer or the seller is an NRI and unable to attend in person, then their authorised agents in possession of a power of attorney must attend.