Even after paying the full price for a house, it does not belong to you entirely unless all the documentation is in place. Paying stamp duty and completing the registration are two important things to legally become the owner of the property. To Avail a Home Loan in India, making sure that these documents are complete is mandatory.
Stamp duty is a type of tax that you pay when you buy a property. Based on the value of the property, a stamp duty must be paid to the government. Once you have paid the stamp duty, a house sale agreement is prepared which is the legal evidence that a property belongs to you. A property purchase transaction is maintained by the government where your ownership is recorded once you have paid the stamp duty.
Registration of the property transfers the property to you and has it registered in your name officially. Within 4 months of paying the stamp duty, your property must be registered under The Registration Act of 1908 under the Sub Registrar of Assurances under the jurisdiction of the area that you purchase the property in. You will have to pay a registration fee to complete this process. This amount is 1% of the total value of the property or the agreement, whichever amount is higher. This fee is subject to a maximum value of Rs.30,000 and differs with each state.
In order to become eligible for a Home Loan in India, you need to ensure that the stamp duty is paid before, on the day of or a day after the sale agreement is executed. You will have to pay the stamp duty immediately after both the buyer and the seller have signed the sale agreement. In case this is delayed, a penalty of2% must be paid every month on the amount that is deficit. This fine is subject to a maximum of 20% of the deficit amount.
You have various options to pay the stamp duty in order to avail a DHFL Home Loan or any other Housing Loan, including:
This is the most preferred method of paying the stamp duty. All details of the agreement are printed on a non-judicial stamp paper that you must purchase from a licensed vendor. The stamp paper has the same value as the stamp duty that you are required to pay towards the property. Once it is ensured that the contents of the stamp paper are correct, they will be paid by the assigned authorities.
This is a method that requires you to visit a bank near you. All the details of the agreement are printed on a blank sheet of paper. Along with this, you will submit the stamp duty amount. Then, you can pay the stamp duty through franking in an authorized bank. For this a unique adhesive stamp equal to the value of the stamp duty is applied on the document by the bank using a franking machine. The charges applicable for franking will vary from one bank to another.
You also have the option of paying your stamp duty digitally. This is the most secure method available to make this payment. Follow these steps for E-stamping:
Log on to the official website of the Stock Holding Corporation of India which is schilestamp.com to make the payment.
You can also transfer the amount through NEFT or RTGS or a DD/ cheque or cash deposit that you can make in any SHCIL branch near you.
After these steps are completed, a unique E-certificate is provided to you along with a six-digit alphanumeric string. The facility to pay the stamp duty through E-stamping is only possible in certain states in India.
Any stamp duty is based on the agreement value or the market value of the property in question. This amount is payable on the registration document contents and not your transaction value. This stamp duty can change from one state to the other.
There are several other factors that determine the amount that you pay as stamp duty. You need to check whether:
In order to register the property, visit the registration centre closest to you. You will have to print the original agreement must be oriented along with 2 photocopies of the individual whose name needs to be included in the property documents. You will have to take two witnesses each from the seller and the buyer’s end to register the property. You will need a copy of your ID proof and the original stamp duty papers. Once the process is complete, you will receive a letter that comes with a unique serial number.
The fees charged against stamp duty or the registration can be very high. Therefore, you can use the following steps to save up on these two major documents:
Register the property in the name of any family member who is a female. Women are provided with subsidies based on the area that the property is located in.
Lastly, make sure that the property is registered at the ready reckoner price. These charges are also known as guidance value or circle rate. If you buy or sell the property below the reckoner fee, it is considered to be a black money transaction. This step allows you to reduce your overall cost of acquiring the property.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.