I have a joint property with my brother, registered 50-50.
Now I want to buy 50% from brother to become sole owner of property.
Do I need to go for property registration again (need to to pay full stamp duty again) or there is any way to save stamp duty, transfer the property or something like that?
Asked in Property Law from Mumbai, Maharashtra
1. Your brother is the owner of 50% of the property which you wish to purchase from him to become the absolute owner of the entire property. The alternative to this is to execute a gift deed whereby your brother may gift the property to you. It would attract stamp duty at a lesser rate.
2. Your brother will have to execute a sale deed in your favour to the extent of 50% of his property. You will become the owner of the entire property only after the sale deed is executed in your favour.
3. The stamp duty will have to be paid on the registration of sale deed. At the time of registration of document in registrar's office you are required to pay the stamp duty as well as registration charges. The registration fee is paid over and above the stamp duty.
1) your brother is 50%owner of property . in case of sale of 50%share conveyance deed has to be executed with your brother .
2) you have to pay stamp duty at 5%depending upon market value of brother share in property as per ready reckoner rates in Mumbai
3) in addition registration charges have to be borne by you .
4) your brother can execute gift of his 50%share of his flat . it would attract concessional rate of stamp duty at 2%^of market value of flat as per ready reckoner rates . registration is necessary for gift deed too
1) As your brother is 50% owner of the the property you will either need to buy out the 50% or alternately he can transfer out by a GIFT DEED.
2) If you have to buy out your brother's share the stamp duty registration charges would be 7%(6+1)
3) To save stamp duty the best option is transfer by GIFT DEED. The stamp duty registration deed is 4%(3+1)
The deed has to be registered. There is no other way of getting the property transferred to you.
1. it has to be transferred through a Registered gift deed or registered sale agreement.
2. To save stamp duty you can go ahead with a gift deed of the 50% . The stamp duty for gift deed is 4% ,i.e 1% reg+stamp duty 3%.
3. whereas if you want transfer it through a sale agreement it is 6+1 =7% of the market value., so it is not advised as you end up in paying more stamp duty and your brother will have to show his tax.
depending on the type /amenities, OC and year of the building you can get depreciation of the valuation in the ready reckner value of the property , accordingly stamp duty can be reduced.
1. If you show it a sale and register a Sale Deed then you shall have to pay entire stamp duty required to be paid for buying property,
2. You will save substantially in paying stamp duty if your brother registers a Gift Deed in your favour conveying his 50% share of the said property.