If the seller does not sell or return the property to the buyer, the buyer is entitled to a special benefit in accordance with the provisions of the Specific Relief Act of 1963. A similar right is available to the seller as part of the agreement to require a certain benefit from the buyer. It is mandatory to pay a stamp duty in accordance with the stamp duty assessment set by the clerk of your territory under your state`s stamp law. Registration fees are higher and higher than stamp duty and are collected in accordance with the deed of sale at 1% of the total value of the property. Now you can figure out how to save stamp duty and registration fees using the following example. In the future, a sale agreement is to be promised that the property will be transferred to the rightful owner, while the value of the sale is the actual transfer of the buyer`s property. “Locked-in property can only be transferred by a transport permit (deed of sale), duly stamped and registered legally. We therefore assert that goods can only be transferred/transported legally and legally through a registered transport obligation. The deed of sale is the most important legal document by which a seller transfers his right of ownership to the buyer, who then acquires the absolute ownership of the property. Signing a purchase agreement becomes important given several factors.
First, it is legal proof that the buyer and seller enter into an agreement on the basis of which the future approach will be decided in the event of a dispute. Also, if you apply for a home loan, the bank would not accept your application until you sign a sales contract. In this case, the total saving of the derlack tax and registration fees is 7 Lake – 4.69 Lake – 2.31 Lake. Although the signing of the sale agreement does not mean that the sale has been completed, it is a decisive step in that direction. For this reason, buyers must be fully aware of the terms and conditions set out in the agreement. Mr. A buys a 1000 sqm apartment in Delhi for 1 Cr. Here is 1 Cr the market value of the apartment. Now the purchase contract must be executed for the total amount, i.e. 1 Cr, but you can save stamp duty by registering the property during district or the value of the govt guidance.
The circle course or the govt guidance value is the minimum value at which the property can be registered. Expressed in lay, Govt Guidance Value or Circle Rate is the market value of the property according to the state government. It is always lower than the existing market value of the property. In this example, the Circle Rate or Govt Guidance is Rs 6500 psf, so according to Govt the Circle Rate or Govt Guidance Value the property is 65 lakes, while the actual market value is 1 Cr. This absolute rule is subject to the exception of Section 53A of the Transfer of Ownership Act. Section 53A provides that the seller has no right to disturb the purchaser`s possession if the purchaser has entered into possession of the property that is the subject of the transfer, while fully acquiring its portion of the contractual obligation.