4 days ago

Delhi May Require Registration of Builder–Landowner Property Agreements

Real estate news: Delhi may tighten property rules, make registration mandatory for builder–landowner agreements · livemint.com

Delhi may change its property rules.

Builders and landowners might have to officially register their building agreements, instead of using only stamp paper.

A 1% registration fee may be charged.

The government says this could help prevent arguments about who owns which part of a building.

Many agreements for small plots are currently made using stamp papers costing ₹50 or ₹100.

Some agreements also involve cash payments for particular floors.

If an agreement is not registered, selling a related flat could become more difficult.

The buyer might later have to pay the missing registration fee.

Delhi is also considering new stamp-duty and approval rules for some General Power of Attorney transfers.

Key facts

Proposed agreement fee: A 1% registration fee may be charged on builder–landowner agreements.
Current practice: Some agreements for plots of about 80 to 100 square yards are made on ₹50 or ₹100 stamp papers.
Registration requirement: Stamp paper alone may no longer be sufficient; agreements may need registration with the sub-registrar.
Effect on later sales: Unregistered agreements could cause complications when a covered flat is sold.
Potential buyer cost: Pending registration fees could be recovered later, potentially adding 1% to the buyer’s cost.
GPA stamp duty: The government is considering a 4% stamp duty on some General Power of Attorney transactions.
Collector’s decision: The Collector of Stamps would generally have 30 days to issue a written, reasoned order, with extensions of up to three months in exceptional circumstances.

livemint.com · 4 days ago