The process of buying a home is not complete without having all the documents in place. For more information on how to become the legal owner of your home, please follow the steps below:
How does stamp duty work?
Any transaction that creates or extinguishes a right or liability involves stamp duty. Among the documents on which stamp duty is payable are sale deeds, gift deeds, partition deeds, conveyance deeds, powers of attorney, and lease deeds. Stamp duty is an important component of registration fees for real estate.
Stamp duty is governed by the Indian Stamp Act and the Registration Act. While transferring ownership of real property, the buyer must pay stamp duty and registration fees to the state government. Stamp duties and registration fees are state taxes.. Most states charge stamp duty charges and registration fees as a percentage of the total value of the transaction.
In most states, stamp duties are higher in urban areas, and rebates are given to women home buyers to encourage them to own their assets.
Registration of property documents
Following payment of stamp duty, documentation should be registered under the Indian Registration Act. Sub-Registrars, whose local jurisdiction the property is located under, are responsible for this task. Documents are registered in order to record their execution. State registration fees are generally one percent of stamp duties. The buyer does not become the official owner of the house unless the deeds are registered in the buyer’s name in government records. Original copies of the registration are kept by the Registrar so that they can be referred to in case of dispute.
Step 1: Calculate your property’s value using the local circle rates.
Step 2: Calculate the actual price paid based on the circle rate. Depending on which of these two values is higher, the stamp duty would be payable.
Step 3: This value will have to be stamped on non-judicial stamp paper.
Step 4: In-person or online stamp paper purchases can be made. You can pay stamp duty through the Collector of Stamps, or you can submit a proof of payment if it has already been paid.
Step 5: Then, you must type and stamp the deed. Depending on the nature of the transaction, the subject matter could be a sale, lease, mortgage, power of attorney, etc.
Step 6: The transacting parties will have to present the deed to the Sub-Registrar’s Office along with two witnesses in order to register the deed. Each individual involved in the process should bring their respective photographs, identification documents, etc. The original deed should be carried along with two copies of the same.
Step 7: A receipt will be issued once the sales deed is registered. Within two-seven days, the sale deed can again be picked up from the Sub-Registrar’s Office.
Step 8: In addition to getting the original sale deed registered, you can also get it verified at the Registrar’s Office using the registry information and date.