7 Ways To Save Money When Remodelling Your Home

After a few years, every home calls for remodeling. This process allows homeowners to upgrade their home with latest-in-the-market building material and technology, thus, making it up to date. Moreover, in case the homeowner plans to sell the property, the remodeling can help fetch a better price.

While many homeowners shy away or postpone their remodeling plans because their current finances don’t allow them to, it is believed that remodeling, if done in a tasteful manner, doesn’t require you to spend through your nose. MakaaniQ lists seven ways in which you could save money when remodeling:

  • Make one big change that really adds beauty and grandeur to your property. For instance, if you have a false ceiling in your living area, it is time that you open up that space and make the room look much more spacious.
  • Do not make major changes to the piping and drainage system. Moving these systems can be heavy on your pocket. Rather upgrade to better quality pipes that have a longer life and ensure no clogging.
  • When remodelling, invest in energy-efficient features such as solar panels, LED lighting, star-rated appliances. These investments can help save a significant amount of money in the future.
  • If your budget allows customise your modular kitchen. In case you are low on budget, opt for pre-designed kitchens available across home improvement stores. While the design would remain the same, the kitchen will be sized based on your needs.
  • Spacious bathrooms and kitchen may be a trend, but don’t fall for it. Rather create compact spaces that would mean lesser construction material and lesser maintenance.
  • Opt for a phased remodelling plan. Begin with one area and then move to the other based on how you are placed financially. This will help you budget yourself wisely and you will be prepared for the next phase even before it arrives.
  • Planning to use glass separators in areas like bathroom, kitchen or even living room? You could pick less expensive options. While the living room, due to the aesthetics would need the glass separator, in the kitchen and bathroom, you could replace it with shower curtains. Available in varied colours and patterns, you could save some moolah.

Also Read: Period Property Restoration: 5 Tips You Should Follow

 

How To Choose The Right Architect

If you are going to invest a fortune in building a project, you would want an expert or architect to handhold you. However, there may be a long queue when you start searching for an expert in the market and finding the one who would be the best for you may not be easy.

PropGuide lists certain parameters based on which you should find an architect for your project.

What do you want?

Before handing over the responsibility of your project, you must be clear on what exactly you want from your architect. Any communication here may cause you much heartburn in future. On the other hands, popular architects may come with a huge price tag. Keep in mind your budget requirements and stick to it.

Check with thy neighbour

The best way to look for an architect is via referrals. Connect with your friends, relatives, colleagues or neighbours who have recently done some construction. These people have a first-hand experience with the architect which may save you a lot of research work.

Check the bio

Go through architect profiles and websites and check their previous work record. This will give you an insight about their designing techniques and domain knowledge.   

Do the research

If everything else fails, a good research will help you find a suitable architect. Refer to the Council of Architecture, the Indian Institute of Architects (IIA) or similar statutory bodies to find one. Connect with architects who are member of these organisations and go ahead.

Interview them

Once you have shortlisted some architects, personally meet them and discuss the work that they have to undertake. Ask as many questions as you can. Try to figure out if their style and techniques suits your requirement. A detailed discussion is always important before you finalise an architect.

Inspect previous work

Inspecting an architect’s previous work would give you a peep into their work technique. The designs, the techniques, the know-how used in his previous works would give you a picture of how suitable he could be for you.

Compare price and designs

Meet more than one architect and compare their works. Before finalising an architect, consider your overall budget and the fee he is charging.

Take the final call

Make the final choice only when you are satisfied on all aspects. Do not forget an architect offers you professional service and not a product. A perfect architect will be the one who satisfies you with his talent, technical expertise and communication skills.

5 Ways In Which Your Landlord May Be Breaking The Rules

Rajeev Sharma, a 27-year-old IT professional, recently shifted to Pune to work with a leading technology company. He was happy to find a rental property lying close to his workplace within his budget. But, when Sharma and landlord sat to ink the lease agreement, the latter mentioned that the security deposit is non-refundable. On hearing this, Sharma decided against renting this place. Sharma was aware of his rights as a tenant.

There are several things that your landlord, despite being the owner of the property, cannot do to his tenants.

Lock you in or out

Even if you have broken a rule, your landlord cannot lock you in or outside the property. In a scenario where the tenant breaks the rule, the landlord may evict him after serving a 30-day notice. An immediate action where the landlord decides to lock you out of the property is against the rules. He can also not stop the supply of utilities.

Enter property without informing

Even though he owns the property, a landlord cannot enter the premises without informing you or in your absence. In case the landlord wants to visit the property, he should inform you at least 24 hours in advance. In case the visiting plan is cancelled, the tenant should be informed about that, too. An emergency visit should only be made in case the tenant is in trouble and needs immediate help or in case the landlord is unable to get to the tenant.

Asks for rent more than on papers

A landlord cannot ask for rent more than what is mentioned in the agreement or an advance rent. In case any repairs that landlord made to the property due to the damages caused by the tenant, it is deducted from the security deposit at the end of the lease.

Terms security as non-refundable

Do note that the security deposit made by the tenant is refundable. In case the property has been damaged, the landlord can deduct the repair cost from the deposit.

Raises rent mid-year

A landlord can as agreed upon raise the rent only once the lease is renewed i.e. every 11 months. A raise in rent mid-year is against the rules. Every time the rent is raised, the landlord has to mention a viable reason for the rise.

What Happens To A Joint Property After Divorce?

People buy homes for different reasons. However, almost always, the need to buy one’s own home is felt as soon as one ties the knot or decides to go in the family way ─ before that, rented accommodation works just fine. Husband and wife join forces to make it happen, to have a house they would call home. Separate savings are quickly accumulated. Loans are fast applied for (banks are only too eager to assist them materialise their dream). An “ideal” property is diligently picked, loan application from are smoothly filled, the date of registration soon approaches. In no time at all, the family is ready for the griha pravesh ceremony, a ritual where higher powers are invoked to safeguard the house for the lifetime. Much to their dismay and disappointment, not all couples will have a happy thereafter in their new home; some would find their differences “irreconcilable” and head towards separation, known as divorce in legal terms. Caught in the crosshairs of this family discord would be the dream house that was bought in happy times. What happens to this house now? Who gets what? Let us find out what the law says about this.

Before we proceed further it would be crucial to note here that that law acknowledges a property to belong to the person on whose name it is registered. Any contributions made during the purchase by any other party, cash or kind, are not recognised, legally speaking, unless you have enough proof to prove otherwise. 

Breaking it, piece by piece

If the property is registered as the joint property of a soon-to-be-former married couple, the wife would be able to stake a claim at the time of divorce. Based on her contribution to the property, the court will grant her her share. In case the property is registered solely in the name of the woman, she will be able to claim it entirely unless the man can prove he contributed to the purchase.  His account statement, for instance, could show he has been paying the monthly installments towards the loan repayment. His account details would also reveal he paid the upfront amount at the time of purchase. The wife could also use these details as a proof of her contribution in case the property is not registered in her name.

To encourage property ownership among women, the government provides them certain incentives. In almost all states, they pay less stamp duty on property registration. In Delhi, for example, women buyers pay only four per cent of the transaction value as stamp duty, while men have to pay six per cent of the house cost as stamp duty. Properties are, hence, often registered in the name of the woman of the house, to save money. Similarly, many banks offer cheaper home loans to women, as compared to their male counterparts. If the loan is taken in the name of the woman of the house, it could help the household to save a great deal of money in the end. At SBI, for example, a woman borrower can currently avail of home loans at 6.95 per cent per annum. The rate of interest for men is seven per cent per annum. While these sops may prove beneficial during happy times, the scenario may change, if the relationship turns sour.

In the eyes of the law, the property belongs to the person in whose name it is registered; in the eyes of the bank, the person in whose name the loan is granted would be responsible to repay the loan. In case a property is registered solely in the same of the wife and she is also the sole applicant of home loan, the law grants her ownership of the said asset. However, this ownership of assets and liabilities cuts both ways. In a happy household, one partner might be able to pay the EMI because the other has been taking care of the remaining expenses. Upon divorce, you are on your own.

In a scenario where the property is registered in the joint names of a married couple and both are also co-borrowers, the court will decide the contribution made by each party and divide the asset accordingly. Both parties would be responsible to pay the loan, though. Do note here that the bank is only concerned about getting its money back. How a divorcing couple manages to do it is not really their concern.

Then there can be a scenario in which the property is registered in the name of the man of the house, and he is also the sole borrower. In such cases, the woman cannot stake any claim at the time of divorce under the existing Hindu law, the Hindu Marriage Act, 1955. The fact that the property was bought after the marriage would not have any bearing on the subject. Simply put, a wife can stake no claim on her husband’s self-acquired property if they decide to divorce.  The Marriage Laws (Amendment) Bill that talks about woman getting a share in her former husband’s property is gathering dust in Parliament since 2010, and is set to be junked in all likelihood. The man’s ancestral property he is expected to inherit also remains out of bounds for the woman seeking divorce.

In Focus: Adhiraj Capital City Tower Oreka By Adhiraj Constructions

Adhiraj Constructions is ready to set the bar high by commencing a new residential project named Adhiraj Capital City Tower Oreka in Kharghar, Navi Mumbai. This new venture will offer the ideal residential options for the home seekers in Mumbai to settle down, enjoying myriad of amenities under a single roof. Apart from the brilliant location, this project developer is ready to impress the future occupants with its brilliant design and convenience.

Adhiraj Capital City Tower Oreka: Complex and Apartments

The construction of the project, Adhiraj Capital City Tower Oreka has already started in the mentioned location. It will have a single high-rise residential tower offering a total of 354 units to possess. As per the speculations, this project will be completed by June 2024. Not much is known about this project, as it has just been launched. It will offer 1 BHK and 2 BHK apartments with floor space ranging from 389 to 567 square feet.

As per the architectural representation, there is a huge area for the construction of the buildings, landscaped gardens, and amenities for the future residents. This is a RERA-certified residential project offering assurance to homeowners in the future. All the apartments will have ample floor space for the residents to accommodate modern infrastructure and for free movement. Every room will have bigger windows and doors to let fresh air and sunlight come in throughout the year.

Adhiraj Capital City Tower Oreka: Specifications

As per the trends followed by this residential developer, Adhiraj Capital City Tower Oreka will have the best infrastructure to rely on. All the buildings will have RCC-framed and earthquake-resistant features. The residential towers will have ample space allocated for the common lobbies.

The kitchen walls and floor will have antiskid ceramic tiles. It will also have a granite countertop and a stainless-steel sink. Apart from these, the kitchen will also have the respective features and connections for modern appliances. The CP fittings will be provided from the house of Jaquar or a similar brand.

The toilets will have a standard dado height with antiskid ceramic tiles. The bathroom fittings and accessories will be of Jaquar or a similar brand. The sanitary fittings will be of Hindware or Parryware or any similar brand.

The main entrance door will have a decorative heavy wooden doorframe along with top-notch hardware for safety. The internal flush doors will also be painted on both sides. The window will have UPVC or powder-coated aluminum sliding frames.

Adhiraj Capital City Tower Oreka: Amenities

Unimark Lakewood Estate will deliver a prime address and a premium gated community to settle down. The common areas will be well decorated and will be secured by 24/7 CCTV surveillance multitier security. The elevators will be of exclusive brands such as OTIS, Kone, or Schindler. Apart from the internal amenities, the residents will also enjoy a plethora of metropolitan facilities in this developed locality.

More than 65% of the area allotted for the project will be dedicated to the development of landscaped gardens and other amenities. The open space will have paved roads, jogging tracks, a garden pavilion, sports courts, pool rooms for gents and ladies. The children will also find dedicated space for playing.

Adhiraj Capital City Tower Oreka: Location

Kharghar, one of the prominent locations of Navi Mumbai, is the best bet for a real estate investment. It is right beside Mumbai-Pune Expressway. Another arterial road that provides excellent connectivity is Panvel Road. Navi Mumbai Metro Line 1 (Belapur-Kharghar-Taloja-Pendhar) will also provide excellent connectivity. Navi Mumbai International Airport is just 12 km away from this location. It is expected to be completed by 2023.

Kharghar is also known for its excellent opportunities and facilities regarding retail and social infra. The best educational institutes are DAV International School, Ryan International School, Convent of Jesus & Mary High School & Junior College, National Institute of Fashion Technology (NIFT), and Institute for Technology & Management.

The top medical facilities can be availed at Mitr Hospital and Kharghar Medicity Hospital. Daily requirements can be met in Little World Mall, Glomax Mall, and Seawoods Grand Central Mall. CBD Belapur, Taloja Industrial Estate, Vashi, Kopar Khairane, Mahape, Ghansoli, and Airoli are the prime localities. The employment hubs close to this location are International Infotech Park, Haware Fantasia Business Park, Electronic Zone, Millennium Business Park, and Reliance Corporate Park. 

5 Real Estate Rules All Homebuyers Should Know About

Property purchase involves understanding a complex set of laws, a task which a common homebuyer would find cumbersome. This is why it is ideal to seek assistance of a legal expert in carrying out the purchase. However, it would certainly not be enough if you did not do some leg work yourself, and made yourself aware of some basic rules. In this article, we talk of some such rules, everyone even remotely interested in India’s real estate must know about.

Also Read: Your Step-By-Step Guide To Buying A Home

Purchase: If you are buying an under-construction property, rules laid under the Real Estate (Regulation & Development) Act, 2016, come into play. The same is not true if you are buying a ready-to-move-in property. In case of a dispute with the developer, the buyer has to approach the state Real Estate Regulatory Authority (RERA) if the property is under-construction. In case it is a ready-to-move-in flat, they have the option to approach the district-level consumer dispute redressal tribunals. As a buyer you have certain duties, too, which you have to diligently follow, failing which you may have to pay a penalty, depending on the nature of offence.  According to the Act, a homebuyer, who fails to comply with the orders of the RERA, will have to pay a penalty for each day of the period of non-compliance. The penalty may “extend up to five per cent of the property cost”.

Registration: Till the property is not registered following the due procedure, the buyer does not become the legal owner of the property. Rules related to property registration are laid in the Indian Stamps Act, 1899. Apart from paying one per cent of the property value as registration charge, the buyer has to pay stamp duty ranging from 4-10 per cent in India. Do note here that stamp duty evasion may invite a penalty leading to 10 times of the stamp duty amount. While it rarely happens, some type of offences may also land you in jail for six months.

Renting: While archaic laws are still in practice, the Draft Model Tenancy Act was launched in 2019 to change the way things function in this housing segment. While the asset remains his, a landlord cannot enter the premises, says the Act, without giving the tenant a written notice 24 hours. Landlords have to follow the same process if they want to carry out any renovation work.

Transfer: In matters of transfer, provisions of the Transfer of Property Act, 1882, apply. According to the Act, “property of any kind may be transferred” by a person “competent to contract and entitled to transferable property, or authorised to dispose of transferable property not his own”. This could be done via sale, gift and relinquishment. However, the law states that you can never make a contract to gift a property which you are hoping to own in future.

Also read: Can You Transfer All Your Property?

Sale: Income tax laws apply when you earn a property on sale of your property. Consequently, you will have to pay short term or long-term capital gains tax on the profit. To save on taxes, the sale proceeds must be invested in another immovable property or some government-formulated schemes.  

Frequently Asked Questions On Property Registration

Among the many tasks that a homebuyer has to perform is the responsibility to register the property with the government, after paying stamp duty and registration charges. Registration of the property transaction and related documents is done under the various provisions of the Registration Act, 1908.

Here are the answers to certain frequently asked questions involving the topic.

 

Is it a must to register property purchase documents?

Under the provisions of the Act, the registration of these property documents is a must:

  • Documents pertaining to gift of immovable property.
  • Documents that are created to ‘create, declare, assign, limit or extinguish’ any right, title or interest of the value of Rs 100 and upwards in an immovable property.
  • Leases of immovable property that are created for a period of one year or more.
  • Documents that are created after a court order transferring any right, title or interest of the value of Rs 100 and upwards in an immovable property.

Also read: Property Registrations Get Easier, Faster and Affordable

 

Is there a time limit, to apply for registration of a document?

The document should be presented for registration within four months from the date of signing. A will on the other hand can be registered at any time.

 

What if one fails to register the property transaction?

Property transactions that are not registered do not have legal validity. Unless a property is registered in your name, you are not its legal owner, even if you are occupying the space. 

 

Registration of what documents is optional?

In certain cases, registration of documents is optional. These include:

  • Documents, other than instruments of gift and wills, which purport or operate to create, declare, assign, limit or extinguish any right, title or interest of a value less than Rs 100 in an immovable property.
  • Leases of immovable property for any term not exceeding one year. Registration for leases that are exempted under Section 17 is also optional.
  • Documents that are created after a court order transferring any right, title or interest of value of less than Rs 100 in an immovable property.
  • Wills.

Also read: Make Sure Your Property Registration Application Is Not Rejected

 

What property documents need not be registered?

Certain property-related documents, as specified under the Act, need not be registered. These include:

  • A grant of immovable property by the government.
  • Any order made under the Charitable Endowments Act, 1890, vesting any property in a treasurer of charitable endowments or divesting any such treasurer of any property.
  • Property purchased at a public auction where a civil or a revenue officer is the seller.

 

Can the sub-registrar reject my registration application?

The sub-registrar can refuse to register your property if:

The language is not comprehensible: If a document is written in a language which the registering officer does not understand, he may refuse to register the document. Such a document must be accompanied by a translation into a language commonly used in that area.

Documents contain interlineations, blanks, erasures or alterations: The registering officer may refuse to register documents that have interlineation, blank spaces, erasures or alterations.

If details of property maps or plans are not provided: Documents relating to immovable property are not accepted for registration unless these contain a description of such property sufficient to identify the same.

 

What if there are false statements made in documents?

Section 82 of the Act says that an imprisonment for up to seven years or a fine (no specific amount is mentioned in this regard) or both could be imposed, in case a buyer ‘intentionally makes any false statements, presents a false copy or translation of a document or a map or plan’. Attempts to ‘falsely personate’ other people is also a punishable offence.

 

Is there a time limit within which one has to collect the registration papers?

Except in case of wills, all other registration-related documents must be claimed within a period of two years of registration, failing which the papers might be discarded by the office. The maker of a will can register his will during his entire lifetime.

 

Can a will be registered after the death of the will-maker?

The will of a person can be registered even after his demise. To do that, the claiming party will have to produce the document and other records relating to the death of the will-maker, the witnesses and the scribe before the sub-registrar. In case the registrar finds no objections in the matter, he will register the will.  However, after the will is registered, a procedure known as will enquiry will be carried out by the sub-registrar’s office, to further check the authenticity of the claims.

 

What are the stamp duty and registration charges for registration of wills?

Unlike property, there is no stamp duty that has to be paid for registering of a will. For registration of a will during the lifetime of the testator, a registration fee of Rs 100 and nominal user charges are to be paid. To register the will after the death of the testator, an inquiry fee has to be submitted, apart from the above-mentioned charges.

 

Who is responsible for fixing property registration charges?

State governments fix stamp duty while registration charge is a central levy. While stamp duty charges vary from state to state (within a range of 2-10 per cent of the transaction value), a buyer generally has to pay one per cent of the deal value as registration charges. In some states, buyers also pay a flat fee on properties of a certain value. 

States also fix charges for searching of the registers (in case you need to find out something from the records), for making or granting copies of reasons, entries or documents, before, on or after registration. They also decide the additional fees payable for the issue of commissions, for filing translations, for attending at private residences and for the safe custody and return of documents.

In Focus: HN Safal Olive Greens By HN Safal Infra Developers

HN Safal Infra Developers is one of the prominent real estate developers in Ahmedabad, offering a brilliant residential setup for modern home seekers to invest in new luxury apartments at marvellous locations. Its new venture, HN Safal Olive Greens, is one of the most coveted ventures that will cater to luxury residences for modern families. Take a quick look at the features and specialities of this residential project.

HN Safal Olive Greens: Complex and Apartments

HN Safal Olive Greens will offer nine residential towers with remarkable options as residential properties. These residential variants will offer 3 BHK and 4 BHK floor plans for modern families with ample space to settle down in the prime location of Ahmedabad.

The 3 BHK variants will offer a floor space ranging from 968 to 1090 square feet. The 4 BHK variants will offer an area of 1782 square feet. The floor plan is designed in such a way that the occupants will enjoy ample free space to walk around after installing all the necessary requirements of a modern home. The development of the project has already been started and it is expected that the possession will begin from June 2026.

HN Safal Olive Greens: Specifications

This residential project has just commenced its construction, offering the best investment platform for modern home seekers. The flats will be built in the form of high-rise residential towers offering a brilliant ambiance for the families to settle down.

Every apartment will have ample floor space for the families with a good segmentation into bedrooms, living room, bathrooms, kitchen, etc. The doors and windows will be wide enough to offer fresh air and sunlight to enter throughout the year.

The doors will have heavy wooden frames with required features for the safety and security of the residents. The windows will have sliding frames made of high-quality anodized aluminum. The kitchen and bathrooms will have antiskid ceramic tiles as per industry norms. The living rooms and bedrooms will have vitrified tiles procured from the top brands. The bathrooms and kitchen will have quality faucets and other fixtures for prolonged use. All the buildings will be constructed with RCC framing and supreme industry infrastructure.

HN Safal Olive Greens: Amenities

HN Safal Olive Greens will offer a brilliant open space surrounding the residential buildings. This open space will be converted into a green landscape with exceptional amenities for recreation. Green lawns, gardens, and jogging tracks will be there for the residents to relax and stroll in the evening. Children will get a dedicated space to enjoy themselves with their friends. Senior citizens will have ample sitting areas to walk and talk. Indoor gaming rooms and sports courts will also be there in a plan offering a good platform for the fitness aficionados.

This project plan will also add a vast swimming pool and a well-equipped gymnasium. The residential apartments will also come with discrete parking facilities. All the residences will enjoy a 24/7 power backup. The entire project will be under CCTV surveillance and a multitier security system. The architectural representation of the project shows remarkable sets of amenities to enjoy for the future occupants.

HN Safal Olive Greens: Location

One of the most promising locations in North Ahmedabad is Gota near SG Highway. It has become quite prominent due to the development of SG Highway that connects Gandhinagar with Sarkhej. The top locations close to this area are Chandlodiya, Vasant Nagar, Shayona City, Anand Vihar, and Vasant Nagar.

Chandlodia Road and Jagatpur Road are the prime roads that connect this location with the rest of the city. These arterial roads are served by auto-rickshaws and buses for the convenience of the residents. Sardar Vallabhbhai Patel International Airport is 15 km away from this location. Residents of this project can also avail of railway services from Chandlodiya Railway station (3.5 km).

The prime educational institutions are Bhavin Vidya Vihar, Nirma University, Nirma Vidhya Vihar, Silver Oak Engineering College, and Aatman International School. The prime medical service centers are Kamdhenu Hospital, Shubham Hospital, and Medisure. The leading employment hubs are Gandhi Nagar, Adalaj, and Thaltej. These employment hubs are just 3-5 km away from the location of the residential project. It can be concluded that this project is convenient for all the family members.

Delhi Gears Up To Hike Circle Rates

In a move that might increase the cost of property purchase in the national capital across residential, commercial and industrial categories, the chief minister Arvind Kejriwal-led government has set in motion the process to revise the circle rates in Delhi.  

The decision by the union territory government comes against the backdrop of the Revenue Department generating Rs 3,297 crores of revenue from stamp duty fees in 2020-21, against the target of over Rs 5,000 crores.

While the UT government had recently cut circle rates by up to 20% to make purchase of luxury properties more affordable, it had last revised circle rates across the city in 2014.

The UT government has directed the 11 districts in its jurisdiction to provide details of land within their purview, while also seeking feedback from stakeholders on the proposed move.

Once a final decision in this regard is taken by the government, the circle rates would increase for all categories of property in Delhi, labelled from A to H. While properties labelled under the A category are the costliest, properties labelled under the H category are the most affordable.

While the circle rate for properties in the H type in Delhi is at preset Rs 23,280 per square metre, the rate is Rs 7.7 lakhs per square metre for properties in the A category.

For the uninitiated, the circle rate is the state-fixed value below which a property cannot exchange hands. This is the basis of stamp duty and registration charge levies, as well and largely determines how much revenue a state government would generate by imposing various taxes on property transactions.

***

Property Prices To Fall In Delhi, As Govt Lowers Circle Rate By 20%

Rates of properties in India’s national capital could fall significantly, as the Delhi government, on February 5, 2021, announced a 20 per cent reduction in circle rates, the government-defined value below which a property cannot be registered in the government’s records.

This, however, is a temporary relief brought about by the chief minister Arvind Kejriwal-led Aam Aadmi Party government of the union territory, in order to boost real estate in the capital city, in the aftermath of the Coronavirus pandemic. The reduction will applicable on all types of properties, including residential, commercial and industrial, till September 30, 2021.

The reduced rates will also be applicable on all eight categories of properties in Delhi, namely A (the priciest type), B, C, D, E, F, G and H (the most affordable type).

The industry has welcomed the move by the Delhi government.

“The reduction in circle rates, even if it is for six months, is a great move by the government. This step will indeed propel buying and selling activity, especially in a few grade-A category micro-markets, which otherwise have been suffering due to the circle and market rate mismatch. A move of this nature will also enable owners of large assets to mobilise transactions which, otherwise, were challenging, given the size and consequent values,” says Shveta Jain, managing director, residential services, Savills India.

Recall here that the national capital region has been the worst-hit housing market in India with a multi-year slowdown that started in 2014 and has further worsened in the aftermath of the novel Coronavirus-led economic contraction.

“The decision by the Delhi government comes at the right time, when the industry is recovering from the tumultuous impact of the pandemic. The reduction in circle rates will make things more affordable and should increase the number of transactions. The decision of the Delhi government may also lead other states to take a similar step in the near future, as a booster to the real estate industry,” said Achal Raina, COO, Raheja Developers.

What Are Circle Rate And Registration Charges?

When you register a piece of property in your name, you are expected to pay registration charges and stamp duty. However, often property sellers and buyers understate the value of the property, to avoid paying a large amount of money as stamp duty or registration charges. To prevent this from happening, state governments decide the circle rate — the minimum rate at which a property transaction can take place. As a buyer, you need to know that there is huge variance in circle rates within a city. This is because there is great variance in property rates within a city.

Read More: Explaining Circle Rate

For example, the circle rates in Greater Kailash-I, a Category-B residential colony in Delhi, would be higher than circle rates in Tajpur Village, an H-category residential colony. In A-Category colonies in Delhi, the circle rates are nearly 30 fold of that of H category colonies.

When you register the transaction of a property, it should either be at the circle rate in that locality in which you buy property or the rate at which the transaction takes place, whichever is higher. You can save on stamp duty, for example, by registering the property in the name of a female buyer. In many states, stamp duty for women is lower.

In Delhi, the stamp duty that women have to pay is four per cent of the transaction value while the stamp duty for men is six per cent of the transaction value. If the property is jointly registered in the name of you and your female partner, the stamp duty would be five per cent of the transaction value.

Registration charges are often one per cent of the transaction value. Registration charges are paid when you register the property document or the sale deed. Even though people often understate the value of the property in official documents to save stamp duty and registration charges, this may have severe consequences.

(With inputs from Shanu)

 

Delhi Govt Starts Process To Revise Circle Rates

With the economic stress caused by the second wave of the Coronavirus pandemic taking a toll on its revenue generation, the Delhi government has started the process to revise circle rates of properties in the national capital.

Circle rates, the state-determined prices below which a property cannot be sold in a specific market and the rates which act as the basis of stamp duty and registration charge payment, were last revised in Delhi in 2014. In Delhi, circle rates are classified in to eight categories, from A to H, based on the area where they are located.

A committee led by officials from the Revenue Department is evaluating the circle rates. This committee is expected to submit a report, within a month, to the government. Meanwhile, the union territory government, led by chief minister Arvind Kejriwal, has sought feedback from the public over this move. Also, authorities of the 11 districts under the UT government have been directed to submit details of land within their jurisdiction.

 In a circular issued, the East Delhi district has sought feedback from the stakeholders, for the circle rates of residential, commercial and industrial properties and land, by July 31, 2021. The list of stakeholders include residents’ welfare associations, real estate developers, architects, landlords, etc.

The move by the Delhi government comes against the backdrop of the Revenue Dcollecting Rs 3,297 crores as revenue from stamp duty fee in 2020-21 against the target of over Rs 5,000 crores.

Recall here that the UT government had also effectuated a 20% cut in circle rates recently, in order to boost sales of luxury property in specific areas. 

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Property Prices To Fall As Delhi Govt Cuts Circle Rates By 20%

In a move that would significantly bring down the cost of property in the national capital, the union territory government, on February 5, 2021, announced a flat 20 per cent reduction in circle rates, across various categories of properties.

The decision to cut circle rates, the government-fixed value below which a property cannot be registered in the government’s records, was made in a late evening meeting of the chief minister Arvind Kejriwal-led cabinet. The reduced rates will remain in effect till September 30, 2021 and will be applicable on all types of properties, including residential, commercial and industrial.  The slashed rates will also be applicable on all eight categories of properties in Delhi, namely A (the priciest type), B, C, D, E, F, G and H (the most affordable type).

For stamp duty and registration charge calculation, tax authorities refer to the circle rates to calculate the exact amount that the buyer will have to pay. In Delhi, where the stamp duty for property registration is four per cent of the deal value, the buyer will have to pay four per cent of the circle rate-based property rate as the stamp duty.

Real estate developers, who have largely been disappointed by the lack of incentives from the recently unveiled Union Budget 2021 and the RBI’s monetary policy, have welcomed the move.

Lauding the Delhi government’s decision, Akshay Taneja, MD, TDI Infratech, said that the resale housing market in the capital city will benefit from this decision. “When real estate is in the revival mode, decreasing the circle rates will have a positive impact on the market. The sector is already facing problems to contain the prices of units, because of increasing raw material costs and in this scenario, low circle rates would be beneficial for the residential sector. The secondary market will witness more registrations, as stamp duty and registration charges will come down,” Taneja said.

According to  real estate brokerage firm Savills India, the move will give a boost to the luxury housing segment in Delhi. “The reduction in circle rates, even if it is for six months, is a great move by the government. This step will indeed propel buying and selling activity, especially in a few grade-A category micro-markets which, otherwise, have been suffering due to the circle and market rate mismatch. A move of this nature will also enable the owners of large assets to mobilise transactions, which were challenging, given the size and consequent values,” says Shveta Jain, managing director, residential services, Savills India.
 

According to Achal Raina, COO, Raheja Developers, the decision by the Delhi government comes at the right time, when the industry is recovering from the tumultuous impact of the pandemic. “The reduction in circle rates will make things more affordable and should increase the number of transactions. The decision of the Delhi government may also lead other states to take a similar step in near future, as a booster to the real estate industry,” says Raina.

 

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Delhi Hikes Circle Rates For Agricultural Land

The Chief Minister Arvind Kejriwal-led Delhi government has decided to increase circle rates of agricultural land in the national capital on December 18, 2019, in a move that could increase their cost by at least five times. From Rs 53 lakhs an acre now, circle the rates for agricultural land in Delhi have been hiked between Rs 2.25 crores and Rs 5 crores. The proposal has yet to get an approval from the lieutenant-governor. 

LG’s Approval Needed For Fixing Circle Rates, SC To Delhi Govt

The Supreme Court (SC) on February 14, 2019, said that although the Delhi government had the powers to fix land circle rates in the national capital, it could not implement such measures without receiving an approval from the Lieutenant Governor (LG). At the same time, the top court also remarked that it did not expect the LG and the council of ministers to differ on such issues often. In case there was a difference of opinion between the state government and the LG, the matter could be referred to the President for decision, the SC stated.

Circle rates are government-fixed minimum rates at which a property could be sold in a particular area. Subject to periodic revision, these rates, also known as ready reckoner rates, government rates and collector rates, vary from state to state and locality to locality. It is this rate on the basis of which buyers have to pay stamp duty on their real estate transactions. A hike in rates would mean properties becoming costlier.

The apex court ruled that circle rates were fixed for the purpose of payment of stamp duty and did not pertain to right over land.

“Circle rates are fixed for the purpose of payment of stamp duty. Therefore, they do not pertain to land namely rights in or over land, land tenures etc., or transfer of alienation of agricultural land etc. Stamp duty is not a duty on instrument but it is in reality a duty on transfer of property,” the Bench said.

The circle rates in the national capital are revised under the provisions of the Indian Stamp Act and Delhi Stamp (Prevention of Under-Valuation of Instruments) Rules, 2007.

Circle rates for residential plots in Delhi

Category

Land cost (in Rs per sq mtr)

Construction cost (in Rs per sq mtr)

A

7.74 lakh

21,960

B

2.46 lakh

17,400

C

1.60 lakh

13,920

D

1.28 lakh

11,160

E

70,080

9,360

F

56,640

8,220

G

46,200

6,960

H

23,280

3,480