It’s no secret that buying a house is lengthy and requires due diligence and a plan of action, especially in big metros like Mumbai, which is, by far, the most expensive city in the country. Nonetheless, the demand in the real estate sector continues to increase, coupled with the growing prices that witnessed an average increase of 13% over the last seven years.
Known as the Populous City, the average price per sq ft for a property in Mumbai is well above ₹11,000. For example, buying a 1BHK house in the city could cost you between ₹80 lakhs - ₹1.5 crores, with the standard size being 400-500 sq ft. Therefore, owning any land in the country’s financial capital requires a significant sum.
Speaking of a city like Mumbai, it is necessary to understand the documentation and paperwork involved in purchasing a house. The most common terms used when buying a residential property include stamp duty and registration charges. Now let’s dwell deep into this.
A government tax levied on a property based on its value is covered under section 3 of the Indian Stamp Act 1899.
It is payable before, on, or the day after the document's execution.
It acts as evidence for the purchase or sale of a property. A physical revenue stamp duty must be attached to reflect payment and be legally permissible.
In cases of non-payment, a penalty of 2% per month on the deficit amount of duty is levied, calculated from the date of signing, which cannot exceed 400%.
It is calculated on the Ready Reckoner Rate, which is -0.6% in Maharastra.
Stamp duties vary from state to state and are based on the value of the individual properties. For stamp duty-related issues, one could refer to Maharashtra Stamp Act 1958. Starting 2023, the stamp duty has been increased by 1%, the additional fee is due to the metro cess on properties.
Post purchasing a property, it is compulsory for the buyer to register their name at the registrar’s office. During this process, the government charges a fee.
Payable at the time of registering the property with the government, usually implemented a few weeks after the purchase agreement is signed.
The registration document certifies the buyer as the legal owner of the property, protecting them from any untoward event.
The property may not be legally recognised by the government, with the new owner not having the title in his name. Fines and penalties are to be enforced on both the seller and buyer, followed by legal action. The parties may be unable to obtain loans and mortgages against them.
It is calculated on the percentage of the property value or sale price.
|Locations in Mumbai||Stamp Duty for Men||Stamp Duty for Women||Registration Charges in Mumbai|
|Municipal limits within the urban area||6% of the market value of the property||5% of the market value of the property||1%|
|Within municipal limits, panchayat, cantonment area in MMRDA||4% of the market value of the property||3% of the market value of the property||1%|
|Within Gram Panchayat||3% of the market value of the property||2% of the market value of the property||1%|
No doubt, buying a house is a lengthy process, however, hiccups on the way can be avoided with thorough research and study.
Moveable property is a category of assets that is equally significant but sometimes ignored in a society where property is typically seen as a permanent and immovable asset. We will examine the principles of movable property in this comprehensive book, learning what it is, why it is significant, and how it could be essential in many areas of our lives.
These Navratri colours are not just a matter of tradition; they are deeply intertwined with the festival's spiritual significance and have the potential to bring peace and prosperity to your residence.
Owning a residential property in Mumbai is a significant accomplishment, both personally and financially. Real estate properties are always in high demand, and it is a dream for every Mumbaikar to own one. However, it is crucial to register your property to establish your legal ownership of it. By paying the registration fee and stamp duty and completing the registration process, you ensure that you are the legal owner of the property.