 |
Information
Legal |
A Flat purchaser has to enter into an Agreement for Sale for the purchase of a flat. The said document duly stamped and registered gives the flat purchaser right title and claim to the flat purchased by him. We have hereunder endeavoured to explain and elaborate e few legal matters that are relevant to the person purchasing a flat. |
|
Stamp Duty |
|
Compulsory Registration of Documents Section 17 of the Registration Act, 1908 |
|
Power of Attorney |
|
Co-operative Societies |
|
|
|
Stamp Duty |
The Stamp duty is payable on instruments before or at the time of execution or on the next working day following the day of execution. The rates for stamp duty are shown in Articles comprised in Schedule -I appended to Bombay Stamp Act, 1958.
| Present rates of stamp duty given for residential premises in the city of Mumbai are, |
|
Between Rs. 5,00,001/- to Rs. 15,00,000/-. Stamp duty is Rs. 7,600/- plus 5% of the value above Rs. 5,00,000/- |
|
Stamp duty is Rs. 68,750/- plus 5% of the value above Rs. 15,00,000/- |
The rate of Stamp Duty for Shops / Galas / Office Premises and Garage even if used for car parking is 10% in Mumbai. Stamp Duty has to be paid on the Agreement Value or the Market Value of the property whichever is higher. Stamp Duty has to be paid every time the flat is being sold. Stamp Duty has to be paid even if it is a transfer within family. If the authorities are demanding more stamp duty than the agreement value then a representation should be made to the authorities emphasizing the below mentioned points (as may be applicable). |
|
Possession of the premises will be acquired at a later date. (10% reduction in the market value is normally given by the town planners if possession is not given to the purchaser at the time of execution of the agreement) |
|
The duty has to be paid on built up area and not on super built up area. |
|
If payments have been made in say 1995 and the agreement has been executed in 1998 then the market value of the year 1995 has to be taken as per the principles of Land Acquisition Act. |
|
There are reductions in the market value if the size of the shop is big. |
|
The area is lacking in infrastructural facilities. |
|
There is a defect in the title of the property and therefore, market value will also be reduced. |
|
The officer should be told to inspect the premises and then only the market value should be fixed. |
|
| |
Penalty at the flat rate of 2% per month is levied by the stamp authorities. The maximum penalty is 200% of the stamp duty amount |
| Inspite of a fall in the property prices in the last few years the market value as mentioned in ready reckoner by government has increased by more than 50%. Earlier, for old buildings, land plus construction cost method of valuation was followed by many officers. |
Next...> |
|
 |
|
