
A Guide to Services: How to Pay Resale Flat Registration Charges in Bangalore
Bangalore, are you looking to buy a resale flat? If so, the term ‘flat registration charges’ may sound well known to you. As it is the case with buying any real estate, these fees are worth knowing.
For the transferring of property in the Urban area, there are several fees and taxes besides the value of the property being transferred. An instance of such a fee is a one-off registration fee. Recently, these fees have come under some scrutiny because of the announcement to raise registration fees for resale flats in Bangalore.
The focus of this blog is to resolve issues regarding flat registration fees in Bangalore. We’ll also go over what they are, how they are computed, and above all, what are the latest changes that may affect the resale flat which you are purchasing.
Key Elements to Perspective regarding Flat Registration Charges
Stamp Duty
Stamp duty is a certain percentage of property’s market price which is paid to the respective state government. In Bangalore, the stamp duty percentage is determined by the price of the house. Based on the latest update, the stamp duty on an amount above Rs 20 lakh is 2% and on homes costing lower than Rs 21 lakh, it is Rs 3%. This concession is only for those registering properties for the first time.
Fees for Registration
The Registration Act of 1908 states that property papers registration has to be done by paying a registration fee. The Stamp Act registration fee in Bangalore has been known to be one percent of the property value.
Stamp Duty and Sale Agreement Registration Report in Bangalore for 2022-23
| Gender | Stamp Duty rates 2022–23 | Registration Charges 2022–23 |
|—————————–|———————————–|——————————-|
| Male owner | On the sale of lots price beyond Rs 45 lakh, Duty is imposed at the rate of 5% | Certificate fee equals to 1% of the cost of the dealings |
| | On the sale of Rs.21 lakh to 45 lakh lots duty at 3% | |
| | Properties with prices below Rs 20 lakhs are charged a 2% levy | |
| Female owner | On the sale of lots price beyond Rs 45 lakh, Duty is imposed at the rate of 5% | Certificate fee equals to 1% of the cost of the dealings |
| | On the sale of Rs.21 lakh to 45 lakh lots duty at 3% | |
| | Properties with prices below Rs 20 lakhs are charged a 2% levy | |
| Joint(Male+Female)owners | On sale of properties above rs 45 lakh duty is 5% | For each property certificate fee equals to 1% of the value of the property |
| | On the sale of properties with prices between Rs 21-45 lakh, 3% duty applies | |
| | On properties sold for less than Rs 20 lakhs, 2% dollar’s duty is charged | |
| Joint(Male+Male)owners | On sale of properties above rs 45 lakh duty is 5% | For each property certificate fee equals to 1% of the value of the property |
| | On the sale of properties with prices between Rs 21-45 lakh, payment of 3% Levies | |
| | On properties sold for less than Rs 20 lakhs, 2% dollar’s duty is charged | |
Joint (Woman + Woman) Owners | Charge of 5 percent on property valued over Rs. 45 lakh | 1 percent of value of property |
---|---|---|
Charge of 3 percent on properties valued between Rs. 21 – 45 lakh | ||
Charge of 2 percent on properties valued below Rs. 20 lakh |
Determining Registration Costs for Resale Flats
So, let us explain how this computation was done. We will show how it is done using a simple example.
Suppose you wish to buy a flat in Bangalore which is being resold and has been valued at Rs. 60 lakhs.
- Look for the guidance value applicable to the property’s location as per the local authority. Let’s suppose the amount is Rs. 50 Lakhs.
- Now you need to compute for stamp duty, Assume a particular area for this example is estimated to have a stamp of duty of 5%.
- The calculation of Stamp Duty: = 5 % of the Market Value = 5 % * 60.00.000 Rs. = 3, 00,000 Rs.
- Work Out the registration charge. In Bangalore, registration charges are 1 percent of the property market value.
- The computation of Registration Charge = 1 %( of Market of Value) = 0.01 * 60,00,000 Rs. = 60,000 Rs.
- You will then in this case compute your total registration cost for the flat which is Cost of resale flat registration equals Cost of Stamp plus Cost of Registration stamp for that flat.
- Total Registration Charges = Rs. 3,00,000 + Rs. 60,000 = Rs. 3,60,000
Choose an Option of Registration (Online or Offline)
In case you want to register your flat for ownership in Bangalore, you are free to choose between two options (Online registration or Offline registration).
Online Registration
- First, register yourself on the designated website of the government.
- You must submit certain property documents including your sale deed.
- Offer information on the parties involved in the selling of the property.
- Stipulate the identification proof type for each of the parties.
- Indicate the property type and search for its minimum value on the web.
- Based on the information provided, calculate the stamp duty.
- Submit other documents such as the sale deed and the NOCs (No Objection Certificates).
- Specify the payment mode.
- Make an appointment with the government department to get your registration done.
Offline Registration
For offline registration where the online process is absent, you will need to go along to the government office responsible for the jurisdiction in which your property is located.
- Sign to complete all required documents where a witness must be present.
- Bring the registration fee and stamp duty as well.
- Wait until the entire process is done and receive registration specific documents.
It is interesting to note that the general consensus is to use the online registration option as it is very easy to carry out, however, the offline registration is said to take a longer period of time.
Documents Required for Flat Registration
If you’ve bought an apartment in Bangalore, either a resale one or a newly constructed one, you will need to register some documents. Different types of property and the area they are in might require more documents but generally, you will require the following:
- Sale Deed: A document that shows proof that the property was sold and its ownership was changed, which is signed by both the buyer and the seller.
- Khata Certificate and Tax Determination Receipts: These important documents that are provided by the corporations or BBMP depict the legality and tax status of the property.
- Affidavit: A legal document making a claim that the property in question is legitimate and the information given is correct.
- Sanction Plan or Conversion Certificate: In case the property was built on converted land then you will need to have a conversion certificate of planning permission from relevant authorities.
- Title Deed: A document that establishes the legal ownership of a given property.
- PAN Card/Form 60 and 61: They are necessary in case the property amount is more than Rs. 5 lakhs.
- Declaration in Form 1: According to the Karnataka Stamp Rules 1977, this declaration is needed to register a property.
Difference between Resale and New Home Purchases
Let’s examine new homes and resale homes. How do they differ in registration fees? Note that we will illustrate Bengaluru in this instance to simplify matters.
Consider a new flat that has a guidance value of Rs. 50 lakhs and has a market value that is Rs. 60 lakhs. In this case:
- Stamp Duty: You will pay stamp duty based on the guidance value of Rs. 50 lakhs.
- Registration Fee: You will pay a fee based on the guidance or market value that is higher. It is Rs. 60 Lakhs in this case.
- Additional Charges: You will be paying minor charges that take the total to 5% to 7% of the property value.
Let us put together this with the example of a resale flat that when sold was worth Rs. 70 lakhs but had previously recorded a higher guidance value:
- Stamp Duty: Stamp duty will now take the basis of the consideration value that was the flats worth when sold Rs. 70 lakhs.
- Registration Fee: The registration fee will also be influenced by the sales price instead of the market value that other homes have been valued at.
- Additional Charges: Just as with new flats, you will incur the usual additional minor charges.
Acquisition charges clearly highlight their relevance since the registration fee is highlighted as one of the cost components in the note.
Conclusion
One of the crucial aspects that one should always be aware of when purchasing a resale flat in Bangalore is the flat registration fees. It would also be nice if one is already accustomed to the rapidly changing rules with regard to real estate in Bangalore. The most important point learned is the relevance of the consideration value in determining if a flat charging registration fee in its transfer is either new or resale.
Whether one is buying a new apartment or thinking of buying an old property, the most important thing one should take along is the knowledge regarding the homeownership. However, in order to assist you on your housing journey in Bangalore, Dream Location has a range of exquisite shared apartments designed with your requirements, comfort, and community in mind. Visit Dream Location and look for a property that suits you best.