Apartment buyers who were until now registering only the undivided share of the land (UDS) while purchasing a flat have to henceforth compulsorily register their construction agreement also and pay two per cent additional charges towards it. Unlike UDS registration, which is based on land guideline value, the registration charges for the construction agreement would be calculated on the cost and other considerations mentioned in the agreement. The government order on this came into effect from Tuesday.
The government amended the Registration Act to make registration of documents such as power of attorney and construction agreement compulsory from December 2012. However, the bill pertaining to amending the Stamp Act that facilitated the levy of new charges received the President’s assent only on September 3.
C.H. Gopinatha Rao, former national president, Institution of Valuers, said it would help safeguard the interests of owners and developers. “When second hand apartments are sold, the registration charges are based on the value of land and building. In new apartments, UDS alone was registered. Now, the sale of old and new apartments is almost brought on par,” he added.
But R. Kumar, Chairman, CREDAI, Tamil Nadu chapter, says: “At a time when people are struggling to buy a home at high cost, this directive will be an additional burden on the buyers. Second, it is also a hassle because it would involve one more registration process leading to more delays.” The government has also notified changes to stamp duty for instruments of partition, dissolution of partnership and settlement among family members.