Hello, I am entering a construction agreement with a builder in Delhi where he will construct a building on my land and I will pay him all the costs of construction. After construction, I will retain full ownership of the whole building constructed on my land. I will not give any floors to the builder and do not plan to sell any floors after construction. I have the following questions- 1. Does this construction agreement have to be registered or is notarisation sufficient? 2. If registration needs to be done, is that in addition to notarisation or can it be done on non-notarised document? 3. What is the stamp paper value to be used and does a consideration value need to be added to it? How is consideration value calculated? 4. Do I have to pay any stamp duty if registering the construction agreement? Thank you and kind regards.
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registration is not mandatory for construction agreement . notarized agreement would be valid
2) however it is advisable to register the agreement .it can be done on non notarised document
3) stamp duty has to be paid
4) stamp duty varies from state to state
1. Registration is not mandatory but highly advisable.
2. It can be done on non-notarized document
3/ 4. Stamp duty is very nominal in case of registration of re-development agreement.
1. You should register the agreement
2. Notarization is not needed , if you are going to register the said agreement.
3. Generally it is 1% of the construction value
4. Yes
1. The construction agreement executed by a rgistered document would be safe in case of breach of contractual agreement conditions at a later stage. It would be useful for you to enforce the conditions through due process of law.
2. If you decide to get the document executed on a a registered document, you may ignore the notarisation of the same.
3. Since this is going to be a construction agreement alone, you may get it registered under book-IV of the registration act. The stamp duty may be enquired from the local registrar's office.
4. The applicable stamp duty for registering any document has to be paid.
This is a contract between landowner and builder to construct building on the land belonging to landowner at a predetermined costs. No transfer of property is contemplated therefore Section 17 of Registration Act is not attracted. A notarized agreement on stamp paper will serve the legal purpose. Though, registration is optional. You will be paying 1 per cent stamp duty over the costs of construction or the amount of construction and registration charges will be another 1 %.
Dear Client,
1. According to the Indian Registration Act, 1908, any agreement for transfer of any interest in an immovable property of value more than Rs 100, is required to be registered.
2. notary should also be done since A notary is a person (lawyer) licensed by the government to perform acts in legal affairs, for meticulously witnessing signatures on documents.
3. The stamp paper value for general construction agreement is Rs. 100/-, to execute the agreement in non-judicial stamp paper.
4. Yes you have to pay the stamp duty.
Yes registered mandatorily for betterment
Stamp paper value can be nominal as interest of Immovable property is not transferred. It will not be dependent on value of construction
Yes stamp duty and registration charges
Hello, thank you for your kind answers. Did I understand correctly that the registration charges are 1% of the cost of construction? How much stamp duty to be paid in delhi in addition to this? Any other fees to be paid? For example, assuming construction costs of 1 cr, how much total costs (inclusive registration charges, fees and stamp duty) will be incurred if I get the document registered. Thank you and best wishes
The stamp duty payable for registration of the construction agreement would be 1% of the construction consideration amount and the registration charges would be 1% of the stamp duty payable in this connection.
For accurate charges you can enquire from the local registrar's office or any document writer who will prepare and get your construction agreement registered on your behalf.
Stamp duty is state subject and varies from state to state
local lawyer can guide you regarding stamp duty and registration charges in Delhi for construction agreement
stamp duty should not be more than 5 per cent
Respect Sir, Greetings !!!
Having learnt your situation meticulously, Kindly observe my recommendations :
1. Does this construction agreement have to be registered or is notarisation sufficient?
It is not mandatory for registration but do register it because there is highest possibility for misunderstanding between dialogues exchanged pertaining to financial and other terms. Secondly there is a common problem with these builders that they exercise immense delay. In both the situations if agreement is registered you will gain an additional weight in the court of law. Note that you take service of expert real estate lawyer.
2. If registration needs to be done, is that in addition to notarisation or can it be done on non-notarised document?
As mentioned above, registry will surely gain weight over notary. I highly recommend for registry.
3. What is the stamp paper value to be used and does a consideration value need to be added to it? How is consideration value calculated?
Rs. 100 Bond will go and registration fee can be found in registration office where your property is situated.
4. Do I have to pay any stamp duty if registering the construction agreement?
Absolutely Yes, there will be a stamp duty which will vary upon jurisdiction. The fee that you will pay is nothing when campare of additional head aces you suffer on an account of disputes hereinafter.
Because I have dealt with several cases pertaining to your situation. Golden advice. Go ahead with registry.
Hope every thing is absolutely clear. Still any issues consult me. Good Luck !!! Adv. Masood.
Stamp duty is in a few thousands. Exact number can be found out from SRO.
In addition to this, you will have to pay legal fee to your lawyer and documentation preparation charges.
Its maximum of 30000 in any case