So, you’ve made the decision and found the perfect home for you. All that’s left is registering with the government to become the lawful owner of your beloved piece of property.
There is a process to do this that you must follow to invite least amount of trouble in the future and secure your new purchase without any issues. Let’s follow this procedure step by step so that you can pull this off accurately.
Pay Stamp Duty
Stamp duty is a kind of tax that is paid to the government for exercising control over some asset or a right. The stamp papers act as a living proof of the this act and serve as the legal tender for the person who commits the action.
The first step along the line is to pay the stamp duty for registration documents of your new property. The duo of Stamp Duty Act and Registration Act lay down the rules for this process. The amount to be paid for stamp duty is based on the total evaluation of the property and varies from state to state.
Registration of Documents
After the stamp duty has been paid to the government, the property will be registered to your name. There will be a separate fees for registering documents which is liable to be around 1% of the total value of the deal. It also varies from state to state.
Once registered, your documents are kept with Sub-registrar for future reference.
Evaluating Stamp Duty and Obtaining Stamp Papers
You must already be wondering that how much is the stamp duty and how to evaluate it. Here’s the process.
Firstly, obtain an estimate of the property by taking the circle rate into consideration. You will get an estimate value for the property.
Now check if the actual deal price that you have settled for is higher or the circle rate evaluation is higher. Whichever is the higher, will be considered for paying the stamp duty.
You can confirm the stamp duty percentage for your state from the registrar office and get the exact amount. After that you have to buy the stamp papers.
These papers can be bought online or offline from registered stamp vendors. This is a step based on convenience. We recommend buying in person.
Signing the Deed
Once you have the stamp papers ready with you, you would have to get them typed for the deed. The matter would depend upon the nature of the deal such as mortgage, purchase, sale etc.
After the documents are ready to be signed, you would be obliged to mark your presence at the sub-registrar’s office. The same applies to the person involved in the deal with you, i.e. the seller of the property.