Tamil Nadu government declare “No registration fee, stamp duty for new apartment”

The welcome move comes shortly after some sub registrar offices demand registration of apartments attracting stamp duty and registration fees.

The registration department in Tamil Nadu has clarified that there is no need to pay stamp duty and registration fees when they are ready to occupy new apartments and buildings. The move comes in the wake of an effort brought in during the COVID-19 crisis and is set to provide some relief for house buyers.

It should be noted that this is only applicable to the first sale of the property.

The Inspector General of Registration  issued an order that defines the Undivided Share (UDS) of a property under the bracket of stamp duty and registration fee.

If a document is submitted for registration for the first sale of an undivided part of the land, the registration authorities are instructed that the subject of the sale document for the sole reason of issuance of completion certificate being competent to the building. Do not demand or urge to be included. A communication from the Inspector General of Registration for Sub-Registrars said.

This will help house buyers save a combined 11% stamp duty and registration fees that they will have to pay for the new apartment.

State Treasurer of the Builders Association of India S Ramaprabhu said that the order is subject to UDS only for stamp duty and registration fee.

For example, the price of a new flat is Rs 60 lakh, out of which UDS is Rs 20 lakh and the remaining Rs 40 lakh is the price of the apartment. House buyers do not require stamp duty and registration fees on the building. This is a welcome step for property buyers in completed projects as it does not attract GST,” he said.

Real estate has not grown well in the last few years due to several policy changes. The current epidemic has also dealt a severe blow to the industry. It is anticipated that the move will boost consumer sentiment and help in faster recovery of the sector.

Tamil Nadu offers extension of three months on payment of property tax

Amidst the corona virus lockdown, Chief Minister of Tamil Nadu Edappadi K. Palaniswami extended the deadline for several loans and other payments to be paid appropriately by a quarter.

Chennai: To provide relief amid the COVID-19 lockdown, Tamil Nadu Chief Minister Edappadi K. Palaniswami noted in his address that property tax payments, water charges, agricultural loan installment to cooperatives, housing loan installment to cooperatives, Tamil Nadu Housing Board, Loan fisheries and hand loom cooperative society’s installments can be postponed by 3 months.

The government has also offered to extend the deadline for loan repayment to Tamil Nadu Industrial InvestmentCorporation (TIIC) and from StateIndustries Promotion Corporation of Tamil Nadu Limited (SIPCOT) then payment of maintenance expenses to units working in SIPCOT industrial undertakings.

According to Edappadi K. Palaniswami, a separate fund of INR 200 crore will be activated to finance the urgent requirements to run micro, small and medium sized units.

The extension also includes renewal of driving license and period of obtaining fitness certificate for vehicles till June 30, 2020.

Chennai: Can residential projects sold through lease deed come under the Real Estate Act?

The Tamil Nadu Real EstateRegulatory Authority (TNRERA) has entertained an application on a leased property, ordering the developer to pay back the homebuyer as the project reminds of a non-starter.

                           

The case concerns a project called 'UTSAV' contracted by New Chennai Township Private Limited at Vellore in Cheyyur Taluk of Kanchipuram district. In a recent order, G Saravanan, an assistant officer of TNRERA said, R Thenmozhi and S Sriram booked a flat and paid it in advance in February 2011. The developer had created a lease deed in support of the complainants to grant the lease for the flat. A period of 99 years which was to be made by the former.

While the total lease fee was Rs 16.69 lakh, the home buyers paid Rs 12.82 lakh. The possession of the flat was determined within 3 months from the date of receipt of the entire lease amount, as per the deed recorded in 2012 after one year. Although the flat's lease value was 80% of the total fee paid, the order stated that the developer neither started construction nor handed over possession of the apartment so far.

The complainants issued a notice for cancellation of the lease deed in 2016 and asked for refund of the entire amount including interest. However, the developer failed to repay the amount. The complainants have taken bank loans to make their payments, which have been allowed to provide relief.

As per the order, the complainants are entitled to refund Rs 12.82 lakh with interest at the rate of 10.15% for the amount paid by the developer from the date of payment till repayment. Rs. 1 lakh has been fixed as compensation for the mental anguish and inconvenience caused to the complainants by the developer". For registration and litigation expenses, Rs 16,790 and Rs 20,000 have been given respectively.

TNRERA ordered the developer to refund the amount, interest, compensation and costs within 60 days.

Tamil Nadu has a plan for portability in registration of properties in sub-registrar offices

CHENNAI: In an effort to safely secure the registration of properties, the state government is plotting to allow all sub-registrar offices in a proper registration district to monitor properties falling under its jurisdiction. Hitherto, sub-registrar offices can only control assets that appear to support their personal revenue jurisdiction.

Tamil Nadu, is divided into 50 registration districts and which has 37 revenue districts. The Chennai zone is divided into five registration districts embracing the revenue districts of Chengalpattu, Kanchipuram, Chennai and Thiruvallur.

The Chennai zone, which values ​​for 45% of the entire revenue produced in TN within property transactions, is estimated to be the most significant successor. Residents, who can travel 30 km from the core city areas to register properties set up in outlying cities, can now visit the sub-registrar office adjacent to their homes.

Kanchipuram and Thiruvallur districts will also benefit the people as the official boundary of the Kanchipuram District Registrar Office covers the entire Thiruvallur's district. Cross-registration of properties from one (registration) district to another, however, will not be allowed.

'Proposal under consideration of government'

For example, a person residing in the core city area who needs to sell a tract of land in Padappai is not required to inspect the sub-registrar office of Padappai. Alternatively, he can manage the sales deed at Adyar or Guindy registration offices.

Currently, district registrars in particular have the ability to provide land registration in any office in their (registration) district. Another official said, "This is decentralization of these capabilities for all registrars." The system is currently supported beyond the Pune region in Maharashtra, the source continued.

The movement will also help boost the number of property registrations in sub-registrar offices that prevent some land registrations. While some sub-registrar offices execute up to 100 transactions through the day, others record only several transactions in the respective registration district. The district registrar said, "With this facility in the community, people can estimate the registration offices of their choosing based on free time slots." This will definitely reduce the waiting time in offices, he continued.