In Bangalore, are you trying to purchase a resale flat? Then, “flat registration charges” may be a familiar term. These fees are important to understand because purchasing real estate involves them.
A number of fees and taxes govern property transactions in Bangalore. An example of such a fee is the one-time registration fee. With the recent announcement of an increase in registration fees for resale apartments in Bangalore, these fees have drawn increased attention.
This customer-focused blog aims to provide clear information regarding flat registration fees in Bangalore. We’ll go through their definition, calculation method, and—most importantly—the most recent adjustments that can affect the resale apartment you’re buying.
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Understanding Flat Registration Charges in Bangalore
In Bangalore, flat registration payments, also known as stamp duty and registration taxes, are essential to purchasing real estate. These fees are essential since they provide legal validity to your real estate acquisition. Simply put, they are the costs of registering your property in your name.
Parts of Fixed Registration Fees
Stamp duty and registration fees are the two main components of flat registration charges. These fees are important in the real estate market based on the property’s worth.
Stamp Duty
The state government receives stamp duty, a portion of the property’s market worth.
The stamp duty rate in Bangalore is contingent upon the property’s value. According to the most recent update, stamp duty on properties above Rs 20 lakh is 2%, and on homes below Rs 21 lakh, it is 3%. This discount is only available to those registering properties for the first time.
Fees for Registration
The Registration Act of 1908 requires the payment of registration fees to register property papers. The registration fee in Bangalore is usually one percent of the property value.
Current Stamp Duty and Sale Agreement Registration Charges in Bangalore, 2022-23
| Gender | Stamp Duty rates 2022–23 | Registration Charges 2022–23 |
| Male owner | 5% on properties >Rs 45 lakh
3% on properties between Rs 21-45 lakh 2% on properties< Rs 20 lakh |
1% of property value |
| Female owner | 5% on properties> Rs 45 lakh
3% on properties between Rs 21-45 lakh 2% on properties <than Rs 20 lakh |
1% of property value |
| Joint (Male + Female) owners | 5% on properties >Rs 45 lakh
3% on properties between Rs 21-45 lakh 2% on properties<Rs 20 lakh |
1% of property value |
| Joint (Male + Male) owners | 5% on properties> Rs 45 lakh
3% on properties between Rs 21-45 lakh 2% on properties<Rs 20 lakh |
1% of property value |
| Joint (Female + Female) owners | 5% on properties> Rs 45 lakh
3% on properties between Rs 21-45 lakh 2% on properties< Rs 20 lakh |
1% of property value |
Calculating Registration Charges for Resale Flats
Now, let’s break down the calculation process. We’ll provide a simplified example to help you understand how registration charges are computed for a resale flat.
Imagine purchasing a resale flat in Bangalore with a market value of Rs. 60 lakhs.
- Determine the current guidance value for the property’s location. Let’s say it’s Rs. 50 lakhs.
- Calculate the stamp duty. Let’s assume the stamp duty rate is 5% for this example.
- Stamp Duty = 5% of Market Value = 0.05 x 60,00,000 = Rs. 3,00,000
- Calculate the registration charge. In Bangalore, registration charges are 1% of the property’s market value.
- Registration Charge = 1% of Market Value = 0.01 x 60,00,000 = Rs. 60,000
- The total flat registration charges for your resale flat will be the sum of the stamp duty and registration charge.
- Total Registration Charges = Rs. 3,00,000 + Rs. 60,000 = Rs. 3,60,000
Online vs. Offline Registration
When it comes to registering your flat in Bangalore, you have the option to do it either online or offline.
Online Registration:
- Start by creating an account on the official government website.
- Upload all the necessary property documents, including the sale deed.
- Input details about the parties involved in the sale.
- Choose the type of identification proof for all parties.
- Specify the property type and determine the guidance value online.
- Calculate the stamp duty based on the provided details.
- Upload additional documents, such as the sale deed and No Objection Certificates (NOCs).
- Provide payment details.
- Finally, schedule an appointment for the registration process at the government office.
Offline Registration:
- You must visit the government office with jurisdiction over your property for offline registration.
- Sign the required documents in the presence of witnesses.
- Pay the registration fee and stamp duty.
- Collect the registration documents once the process is completed.
- It’s worth noting that the online registration process is generally more convenient, while offline registration may take more time.
Documents Required for Flat Registration
Both newly constructed and resale apartments in Bangalore require the registration of specific paperwork. Depending on the kind of property and where it is located, other paperwork may be required, but generally speaking, you’ll need these:
- The sale deed is an important document as proof of the sale of the property and the transfer of ownership. Signed by the buyer and the seller, it is an official document.
- The property’s legality and tax status are demonstrated by the Khata Certificate and Tax Determination Receipts, which are crucial documents provided by the corporations or BBMP, the local governments.
- An affidavit is a formal statement attesting to the property’s legitimacy and the accuracy of the data supplied.
- Sanction Plan or Conversion Certificate: You must get a sanction plan or a conversion certificate from the appropriate authorities if the property is on converted land.
- Title Deed: The title deed is a crucial document proving the property’s legal ownership.
- PAN Card/Form 60 and 61: You must present your PAN card or Form 60 and 61 if the property’s value exceeds Rs. 5 lakhs.
- Declaration in Form 1: This declaration is required for property registration per the Karnataka Stamp Rules 1977.
New vs. Resale: A Comparative Analysis
Let’s compare the two scenarios to help you appreciate the difference in flat registration charges between new and resale properties in Bangalore.
Consider a new flat with a guidance value of Rs. 50 lakhs and a market value of 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, whichever is higher. In this case, it’s Rs. 60 lakhs.
- Additional Charges: You’ll pay minor charges, bringing the total to around 5% to 7% of the property’s total cost.
Now, let’s compare this with a resale flat worth Rs. 70 lakhs, where the consideration value is higher than the guidance value:
- Stamp Duty: Stamp duty will be based on the consideration value of Rs. 70 lakhs.
- Registration Fee: The registration fee is also based on the consideration value, which, in this case, is higher than the market value.
- Additional Charges: Similar to new flats, you’ll pay additional minor charges.
The disparity in registration charges between the new and resale flat becomes evident, with the registration fee being the major contributor to the increased cost.
Conclusion
Buying a resale flat in Bangalore necessitates a thorough understanding of the flat registration fees involved. Keeping abreast of the ever-changing laws about real estate is crucial in Bangalore. The main lesson is the significance of the consideration value in determining whether a flat registration fee applies to a new or resale transaction.
Your biggest tool on the road to homeownership is knowledge, whether buying a brand-new apartment or mulling over a secondhand property. Propex is here to help you on your housing journey in Bangalore by providing a variety of beautifully crafted shared apartments that prioritize your comfort, convenience, and sense of community. Check out Propex right now to find your ideal dwelling.
