“We do not need to pay stamp duty twice. It’s like, we need to pay stamp duty in two installment, 0.5% at the time of sale agreement execution and remaining at the time of sale deed registration”
Sale Agreement constitutes terms and conditions of the property sale. The sale agreement safeguards the seller and buyer from any misinterpretations or conflicts arising during the deal and serves as a user guide for the complete transaction from initial offer to possession of the property.
If we register the sale agreement or apply for home loan. We should pay stamp duty for sale agreement, the stamp duty is 0.5% of consideration or government guidance value, whichever is higher
For Example:
My client, wants to buy a house in Bangalore, the buying price is Rs.1,28,00,000. The buying price Rs.1,28,00,000 is more than government guidance value of Rs. 57.15 lakhs
My client applying for home loan of Rs.80 lakhs from ICICI bank. The bank told us to execute the sale agreement with 0.5% of stamp duty to process home loan application. Accordingly, we executed the sale agreement and adjudicated the stamp duty in sub-registrar office. The stamp duty is 0.5% of buying price which is Rs. 1,28,00,000 * 0.5% = 64,000/-
We adjudicated the Sale Agreement in sub-registrar office, refer to the below adjudication certificate and we highlighted the stamp duty value of Rs. 64,000
Based on the above sale agreement, our loan application was processed and loan is sanctioned in 20 working days
Sale Deed is a legal document that transfers the ownership of a property from seller to buyer. To register the sale deed in sub-registrar office, the buyer must pay the applicable stamp duty
In Bangalore, the stamp duty for sale deed registration is 5% of consideration or government guidance value, whichever is higher
As mentioned in the above example: we paid Rs. 64,000 as stamp duty for sale agreement, and we denoted Rs.64,000 when we paid stamp duty for sale deed registration. We highlighted the denotation of stamp duty in below sale deed summary report for your reference
After denotation, our Stamp Duty for Sale Deed registration is Rs. 6,52,800, we paid this stamp duty and highlighted the same in below sale deed for your reference
We provide assistance for Sale Agreement and Deed registration. Please write to us pgnproperties@gmail.com or WhatsApp to +91-97424-79020
Thank you for reading…