The journey of buying a house does not end at the physical possession of the property. If you are planning to buy a house in Chennai, then you must know that the payment of the State levied stamp duty and registration charges is an important part of the transaction.
Any property investment agreement is incomplete without the payment of these overhead charges. The stamp duty and registration charges differ from state to state, primarily determined by the market value of the property, ownership status, and whether it is a commercial property or residential. Once the stamp duty has been paid, the property must be registered at the sub-registrar office in order for the transaction to be complete.
Let’s start with understanding what these overhead charges are and why they are levied in the first place.
Simply put, stamp duty is a legal tax placed on property documents during the transfer or sale of a property. It is payable in full and testaments for the sale or purchase of a property. It is a state subject, which is why the tax rate varies from state to state. Following which, a property must be registered in order to be deemed legally purchased. Once a property is registered in the owner’s name, the registration charges are levied. If the property is not registered, the entire purchase can be accounted null and void.
- The stamp duty charges in Chennai (rural and urban) is 7% of the market value of the property (as decided by the government, depending on the zone where the property is located).
- Once the stamp duty has been paid and the buyer registers the property under his/her own name, a registration charge of 1% of market value of the property is payable.
Rural or urban, men or women, there is no distinction in charges, throughout Chennai. The stamp duty (7% of property market value) and registration fee (1% of property market value) to be paid is the same at the Registrar/Sub-Registrar’s office of the respective jurisdiction where the property was purchased.
Chennai’s proliferating growth across all spheres, including employment and educational opportunities, infrastructure, has contributed to its rising demand for residential projects. Many young professionals and families are choosing to find a home and settle in this city. Those of you looking to buy a flat in Chennai must check out the ready-to-move-in luxury apartments by Casagarand developers in some of the best, burgeoning neighbourhoods of Chennai. Just remember, apart from the cost of the property, a stamp duty tax and registration fee will be added, which is payable in full before the possession of the property.