I’m planing to buy a site in Bangalore. Three months ago the guidance value was 1500 per sq. And the seller is ready to sale his site for 2500 per sq. Now the guidance value was increased and raised to 4297 per sq. And the seller is ready to sale his site for 2500 now. The documents are legal. But I’m confused that will I have any legal issues in this deal ? Convey me as soon as possible tank you
Dear sir,
Please go for a purchase of site based on the present guide line value as the seller want to safeguard the stamp duty value so he ask you to give on same old rate but to have a genuinety pls go on the present market value based on which you can pay stamp duty and get registered your site!!
Please approach office of competent authorities to verify the real value and obtain true copy of the records. Even you may check it online which are available on website.
Please do not have impulsive thoughts and actions while buying the property.
Pl clarify and verify all the records and true facts of the property and rate then buy and get it registered before the Competent authorities.
you would have to pay stamp duty at circle rate
3) for the purpose of calculation of capital gains circle rate would be taken into consideration and the price mentioned in sale deed .
4) section 50C of the Income-tax Act, 1961 clearly mentions that the liability on capital gains would arise on the value of the property as fixed by the state valuation authority .
5) Delhi HC has held that regsitrar cannot refuse registration if property value mentioned is lower than circle rate . document can be referred for adjudication to the collector . after hearing the parties collector has to to determine correct valuation of property
No you will not have any legal issues but the guidance value can't be shown so less if decided by corporation. The guidance value will be taken in to account which is decided by corporation for registration purposes
1. As far as my knowledge knows the guidance value of the properties have been reduced.
2. However if the guidance value is higher than the actual cost of consideration, then you can pay stamp duty and registration charges as applicable to guidance value and the correct selling price may be shown in the narration in the document as consideration amount.
Stamp duty will levy on guidance value (govt. circle rate) or sale value which ever is higher. NO legal issue. You can mention purchase in 2500per sq. If govt. circle rate is higher than stamp duty will pay on that rate but purchase price will be 2500 per sq only.
Dear Sir,
If you can produce that the agreement was done for the said sale when guidance value was lower, then this sale will be free of all the issues.
I wonder if you are getting a thing at lesser value than the market price then what is bothering you.
Consider yourself lucky and buy this property.
In life threadbare analysis in every event is not prudent.
- As per law. the guidance value is the minimum rate at which a property can be registered on its sale , and in some States it is called circle rate.
- This value is set by the State government, and it is the minimum price at which a property is to be registered in the office of the registrar, and stamp duty is to be paid by the buyer , and further the buyer of a property cannot register it at any amount below this price.
- Further, if the guidance value is more than the market value, the property needs to be registered at the guidance value , and if the market value is more than the guidance value, it may be registered at any amount over and above the guidance value.
- Further, home loan is given on the registered value of the property
- Finally , you cannot registered a property at any price that is below the guidance value , hence if you will adopt the value of seller for the registration of the property , then you many face legal issue in future.
1. Purchase price of any immovable property is not linked to price that may be amicably decided between Buyer and Seller.
2. However, the Stamp Duty shall be payable on the "guidance value /ready reckoner value" as may be issued by IGR office,
3. IF guidance value is higher than actual purchase value, THEN stamp duty shall be payable on guidance value and not on actual purchase value.
Stamp duty as per guidance value will be applicable to you in case selling price is lower than the guidance value.
You can buy the property at the lesser rat than the government fixed guidelines value for the property.
However you may have to pay the stamp duty as per the guidelines value only and not for the purchase value if the purchase value is lesser than the guidelines value.
If you buy a property below the guidance value, you will still need to register it at the guidance value.
A. Irrespective of consideration amount written in the sale deed at the option of the either Seller or Purchaser that stamp duty must be paid as per the prevailing guidance value as calculated by the Sub Registrar.
B. If you have paid insufficient stamp duty towards the guidance value then only it becomes problem else nothing to worry. You could mention 2500/- value but stamp duty must be paid Rs. 4297/- while executing Sale Deed then only Sale Transaction will be perfect in the eyes of law.
No you don't have any legal issue because the deal was done at 2500 per sq ft so you just need to pay seller accordingly but the stamp duty will be charged as per guidance value in date of registration.
You should engage a lawyer who will due a due diligence on the property and inform you about any incumbrances ie loans mortgages or disputes pending/ongoing on this property.
