Construction agreement registration charges in Chennai 2019
If you are planning to purchase or sell a property in Chennai, one of the essential steps is registering the construction agreement. The registration of an agreement is a legal process that establishes the validity of a contract between two parties. The registration ensures that the terms and conditions of the agreement are legally binding and enforceable. As a result, registration is mandatory if you want to protect your property rights and avoid any legal disputes.
In Chennai, the registration of a construction agreement involves some charges that the parties have to bear. In this article, we will discuss the construction agreement registration charges in Chennai for the year 2019.
Registration Charges
The registration charges for a construction agreement in Chennai are calculated based on the value of the property. According to the Tamil Nadu Registration Department, the registration charges for the registration of a construction agreement can be calculated as follows:
– If the value of the property is less than 10 lakhs, the registration charge will be 1% of the property value
– If the value of the property is between 10 lakhs and 50 lakhs, the registration charge will be 2% of the property value
– If the value of the property is more than 50 lakhs, the registration charge will be 4% of the property value
Apart from the registration charges, there are other charges that parties must consider while registering a construction agreement in Chennai. These charges include stamp duty, transfer duty, and other miscellaneous charges.
Stamp Duty
Stamp duty is a tax levied by the government on the registration of a property transaction. The stamp duty for the registration of a construction agreement in Chennai can be calculated using the following formula:
– If the property value is less than 10 lakhs, the stamp duty will be 5% of the property value
– If the property value is between 10 lakhs and 50 lakhs, the stamp duty will be 7.5% of the property value
– If the property value is more than 50 lakhs, the stamp duty will be 8% of the property value
Transfer Duty
The transfer duty is another tax levied on the transfer of a property. In the case of a construction agreement, the transfer duty will be 1% of the property value.
Miscellaneous Charges
Apart from the above charges, there are other miscellaneous charges that the parties have to bear, such as service charges, legal fees, and documentation charges. These charges may vary depending on the complexity of the agreement and the property value.
Conclusion
The registration of a construction agreement in Chennai is an essential process that involves various charges, including registration charges, stamp duty, transfer duty, and other miscellaneous charges. It is crucial to understand these charges to ensure that you are well prepared to bear the expenses associated with the registration process. By doing so, you can avoid any last-minute surprises and complete the registration process smoothly and efficiently.
