Putting a cap on registration fee, Vasundhara Raje, Chief Minister, Rajasthan, recently announced that the highest fee applicable henceforth will be Rs 4 lakh. Since a flat one percent of the registration fee is levied on purchasers in the current scenario, the state government’s move will largely benefit buyers who are purchasing property over Rs 4 crore.
The developer community in the state has welcomed the announcement made during the Budget speech. After going through a dull phase for nearly two years, the real estate industry may soon witness some recovery in Rajasthan on the back of this decision. However, many relators still find Rs 4 lakh as registration fee a steep amount and are demanding that maximum registration fee be set at Rs 1 lakh.
To benefit small developers, the government has also reduced stamp duty on sale agreements from three percent to 0.5 percent. Likewise, power of attorney authorising the sale of immovable property has been reduced from the current two percent to 0.5 percent. The government has also announced a 10 percent concession on market value of commercial plots of more than 500 sq m. Further, a five percent concession is offered on commercial plots of 100-500 sq m.
The state government’s decisions to reduce registration fee and stamp duty on real estate are aimed at providing relief to builders and property buyers in the state. The announcements will benefit all the buyers as they will have to bear less charges on getting their properties registered.