I(buyer) have entered in sale agreement for property in karnataka in the year 1991 by paying an advance (4 lakhs). there was a clause of specific performance, in case the seller did not perform he would have to make the sale deed by taking an additional amount of rs 2 lakh. subsequently the seller did not perform his part, we then went to court and we got an order from high court in our favour and remitted the balance 2 lakh and interest(as ordered by court) of app 3 lakh.(total original sum is 4 lakh plus 2 lakh = 6 lakh). the seller also appealed in supreme court but lost. we have filed execution, now the question is, the current circle value is about 50 lakh. we will be registring the sale deed now so do we have to pay the stamp paper as per 6 lakhs, or 9 lakhs, or as per 50 lakh(current circle), or as per the circle rate in 1991? of course
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
stamp duty has to be paid as per circle rate
2) in sale deed consideration can be mentioned as Rs 9 lakhs but stamp duty has to be paid as per circle rate
3) in the laternative you have the option to keep the registration of Sale Deed pending if you don’t agree with circle rate.
4) case will be referred to Deputy Commissioner (Valuation). If Deputy Commissioner agrees with the justification then he will grant permission to register property at a value lower than circle rate.
1.The stamp duty is to be aid at the rate when the same is prevalent for the purpose of registration.
2. So date of passing decisions in your favour has no consideration and you have to pay the stamp duty at the rate of present date.
3. So prepare the deed and register accordingly.
4. However of there is direction of any damages in the final judgement you can seek the same in the execution case.
5. DO note that since the value of the proeprty you purchased has increased , you have to pay the stamp duty at increased rate as well.
the property in question is a slum consisting of about 90 to 100 slum houses(which was present prior to 1991 also. the site is also a revenue site and even after registration at circle rate we may not get possession for some period of time, so market or circle value is anyways not going to be the right value. so options are 1) to do pending registration?, then get Deputy commissioner valuation done? 2) but isnt the buyer being forced to pay a higher stamp paper? what if he does not have that kind of money? it means he is being forced to sell the property to other person, isnt it? there should be some citations(all payments made by cheque) in this regard as this is a common problem in real estate industry where the seller backs off (even after getting full payment)on the deal and the purchaser is forced to go to court and win the battle after prolonged years and then lose again mentally and financially. just imagine a home buyer buys a house for own purpose and then hes forced to shell out an amount appx equal to the value of the home in terms of stamp paper.
keep registration pending apply to Dy commisisoner valuation for determination of stamp duty payable on the property
we have filed execution, now the question is, the current circle value is about 50 lakh. we will be registring the sale deed now so do we have to pay the stamp paper as per 6 lakhs, or 9 lakhs, or as per 50 lakh(current circle), or as per the circle rate in 1991? of course
The value of the property shall remain the same which is as per the sale consideration price quoted in the sale agreement.
However the stamp duty applicable for registration should be enquired from the registrar's office.
In fact the court will arrange the registration formalities, so you will be informed about it by the court staff itself, you may enquire from them.
1. If you have filed an execution petition before the court, the court staff will perform the registration formalities from the court side on the orders of court, hence you have no choice or to withdraw the execution petition, which may be wrong step or misguidance. Your long struggle and legal battle, having won it, may become waste if you do not follow up the action continuously.
2. Your logical reasoning and arguments may appear justified but what can you do when the law is such.
All are common before law and you cannot claim any exemption on your sentimental reasons.
1. The stamp duty has to be paid at the rate prevailing at the time of execution of the sale deed, not the rate which was prevalent when the agreement to sell was entered into.
2. The difference in the rate prevalent now and the rate which was prevalent as on the date on which the sale deed was to be originally executed can be recovered by the buyer from the seller through a suit for recovery of money.
