PROPERTY REGISTRATION MARKET VALUES MAY BE REVISED BETWEEN 02-11-2015 TO 05-11-2015 IN BANGALORE


The Stamps and Registration Department might be revising the Guidance values of the properties in the Bangalore Rural and urban Districts between 02-11-2015 to 05-11-2015.  It is learnt that a decision has already been taken and will be announced soon.

The New Guidance Values will reflect the latest market values of the properties and there was a section/group, which requested the Govt not to increase the guidance or market values for the registration purpose as the realty sector reeling under severe pressure.

There is an average increase of about 10% to 30% in the property registration values in and around bangalore, coupled with 30% to 40% increase in the municipal taxes will definitely bomb the market and will drag it down to 5 years low in prices.

The prices of properties are not looking up except in the builders advertisements and brochures and the rental market is down by 10% to 40% in the IT belt.

DID YOU CHECK AND VERIFY THE VAT TAX, SERVICE TAX, BESCOM DEPOSIT AND BWSSB DEPOSIT CHARGED BY THE SELLER/DEVELOPER ?


ONE OF OUR READER HAS DONE A CALCULATION OF VALUE ADDED TAX, SERVICE TAX, BESCOM DEPOSIT, BWSSB DEPOSIT, LEGAL CHARGES, GENERATOR CHARGES, STAMP DUTY AND REGISTRATION FEES, WHICH WORKS OUT AT OVER 20% OF THE STATED OR QUOTED PRICE OF THE PROPERTY, APART FROM THE CHARGES PAID OR PAYABLE FOR OBTAINING THE BANK LOAN, WHICH MAY BE ANOTHER 1/2% OR 1%.

IN SOME CASES, THESE CHARGES AMOUNTED TO OVER 25% AND 75% OF THE CASES, THE BUYERS DO NOT HAVE KATHA FROM BBMP, STILL HAVE TO REMIT THE BETTERMENT CHARGES AND PAY THE KATHA FEE, WHICH WORKS OUT AT APPROXIMATELY AT 1%.

Many of the buyers are under the wrong impression and notion that the approval or sanction of BANK LOAN will confer the best right, title and interest of the property.  IT IS WRONG. 

TAKE CARE. CHECK THE CHARGES. DEMAND THE BILLS. DEMAND THE RECEIPTS. 

THE MARKET VALUE OR GUIDANCE VALUE FOR REGISTRATION OF PROPERTIES IS UNDER REVISION


THE CVC HAS PUBLISHED THE GUIDANCE VALUE FOR THE BANGALORE URBAN DISTRICT AND INVITED OBJECTIONS FROM THE PUBLIC, TO BE SUBMITTED WITHIN 15 DAYS FROM 07-10-2014.  THE OBJECTIONS ARE BEING EXAMINED.  THE REVISED GUIDANCE OR MARKET VALUE OR THE REGISTRATION VALUE TO CALCULATE THE STAMP DUTY AND THE REGISTRATION FEE WILL BE PUBLISHED SOON.

IT IS LEARNT THAT THE AVERAGE INCREASE IS IN THE RANGE OF 20% TO 30%.  BUT IN THE BANGALORE NORTH THE VALUES HAVE SHOP UP IN SOME AREAS BY 100% AND THOUGH THE GUIDANCE VALUES HAVE BEEN INCREASED BUT THE REAL MARKET VALUE IS MUCH HIGHER.

HENCE, THERE IS LONG Q IN THE SUB-REGISTRAR OFFICES IN BANGALORE URBAN AND RURAL DISTRICTS AS THE PROPERTY BUYERS THINK THAT THERE WILL BE A REVISION FROM 01-11-2014.

JOINT DEVELOPMENT AGREEMENTS EXECUTED FOR APARTMENTS AND LAYOUTS – UNDER REVISION – STAMPS AND REGISTRATION DEPARTMENT –


THE STAMPS AND REGISTRATION DEPARTMENT HAS DETECTED TAX EVASION IN THE JOINT DEVELOPMENT AGREEMENTS EXECUTED BETWEEN THE LAND LORD AND THE DEVELOPERS AND BUILDERS AND HAS REOPENED THE FILES BY ISSUING NOTICES TO THE CONCERNED LANDLORDS AND THE BUILDERS/DEVELOPERS.

IT IS FELT THAT THE DUTY LIABILITY ALONG WITH THE FINE WILL BE IN TUNE OF CRORES FOR THESE PROJECTS, THE BUYERS MIGHT ALSO FEEL THE HEAT OF THIS INVESTIGATION.

EVEN THOUGH, SOME SUITS ARE BEING CONTESTED IN THE HIGH COURT, BUT NONE OF THEM HAVE REACHED ITS FINALITY AND WITH THE FRESH NOTICES, THE SITUATION FOR THE DEVELOPERS AS WELL AS LAND LORDS APPEAR TO BE VERY GRIM.

REGISTRATION EXPENSES MAY GO UP SOON FOR PROPERTIES IN KARNATAKA


THE STATE GOVERNMENT MAY REVISE THE GUIDELINE VALUES OF THE PROPERTIES AND MIGHT INCREASE THE STAMP DUTY ON THE REGISTRATION OF PROPERTIES IN KARNATAKA, VERY SOON.

PROPERTY REGISTRATION CHARGES AT BANGALORE


THE STAMP DUTY IS 5.6% ON THE GUIDANCE VALUE OR THE MARKET VALUE OR THE CONSIDERATION SHOWN IN THE DOCUMENT- WHICHEVER IS HIGHER. IT IS APPLICABLE FOR BBMP LIMITS PROPERTY.

THE REGISTRATION FEE IS 1% ON THE GUIDANCE VALUE OR THE MARKET VALUE OR THE CONSIDERATION SHOWN IN THE DOCUMENT- WHICHEVER IS HIGHER. IT IS APPLICABLE FOR BBMP LIMITS PROPERTY.

THE TOTAL EXPENDITURE/EXPENSES/FEE/CHARGES IS 6.6%.

STAMP DUTY AND REGISTRATION FEE FOR PROPERTIES IN BBMP LIMITS


STAMP DUTY: 6.72% OF THE GUIDANCE VALUE OR THE CONSIDERATION AMOUNT SHOWN IN THE SALE DEED,WHICHEVER IS HIGHER.

REGISTRATION FEE: 1% OF THE GUIDANCE VALUE OR THE CONSIDERATION AMOUNT SHOWN IN THE SALE DEED,WHICHEVER IS HIGHER.

TOTAL: 7.72%.

IT IS APPLICABLE FOR SITES, HOUSES, APARTMENTS AND ALL TYPES OF PROPERTIES.