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  • Stamp duty is payable under Section 3 of The Bombay Stamp Act, 1958.
  • Stamp duty is payable on market value or agreement value whichever is higher.
  • Market value of any property is determined by the stamp duty authorities on the basis of the Stamp Duty Ready Reckoner issued by the government on January 1 every year.
  • Stamp duty for residential property is Rs. 7600/- plus 5% of the residential value in Mumbai above Rs. 5, 00,000/- plus and 6% for Thane and Kalyan for the time being in force.
  • Stamp duty for non residential property is flat 5%.
  • Stamp duty is charged, for every Rs. 500/- or part thereof of the value.
  • Stamp duty must be paid at the time of execution of the agreement. Penalty for late payment of the stamp duty is 3.5% for properties less than 1 crore and 4.2% for properties higher than 1 crore per month on deficit stamp duty amount, subject to maximum two times of the deficit stamp duty amount.
  • A stamp duty paid document is considered a proper and legal document and as such gets evidentiary value and is admitted as evidence in the court of law. The documents that are insufficiently stamped are not admitted as evidence by court.
  • Once the stamp duty is paid on the document, it has to be registered with the Sub Registrar of Assurances of the respective district. The document is to be registered according to the provisions of The Registration Act, 1908.
  • The document should be registered within 4 months from date of execution.
  • All parties executing the document admit before Sub Registrar of Assurances that they have executed the document presented for registration. Parties are then identified by two independent witnesses.
  • Parties to the document are photographed and their left hand thumb impression is taken and such photograph and thumb impression is affixed on additional pages attached to the document apart from colour photographs and thumb impression which a person affixes in agreement value while executing a document.
  • The Sub Registrar of Assurances records the content of the document, including the additional pages, either by photocopying or scanning the content of the documents.
  • If a particular document is required to be compulsorily registered under the law and is not registered then the proper legal title will not pass on the purchaser i.e. the title will be defective and document becomes inadmissible in the court of law.
  • Registration fees is 1% of the market value or agreement value whichever is higher, subject to a maximum of Rs. 30,000/-.
  • The property Agreement executed before obtaining O.C. is subject to service tax at 2.575%.
  • There is also VAT (Sales Tax) applicable at 1% of agreement.

Signing a title report (received from the solicitor of the property) with any fine print and specific government reservations is unadvisable. Accept clearance reports that are lucid and specific. For instance, if you are interested in buying property that has been built over reclaimed land, make sure that building has been given clearance by the government. Precautionary measures will prevent you from getting embroiled in any future disputes. They will also help ensure that your home loans aren’t scrutinized.

Before a construction begins; the builder must seek several permissions and approvals from relevant bodies. Without these clearances, the construction may come under litigation. Here is a list of documents and approvals that the builder must possess for all building work to commence Mumbai & Kalyan Dombivali Municipal Region.

  • ULC order (in specific cases)
  • IOD and CC of the project
  • MCGM / KDMC approved plans