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Property Registration Charges in Mumbai

When dealing with any real-estate undertakings, it is important not to overlook property registration charges. Mumbai and other metropolitans have an especially high fee that can easily run into lakhs of rupees. To know all about these property-related charges in Mumbai, read on,

What is Property Registration Charges and Circle Rates?

Property registration charges in Mumbai are the fees you incur for registering a property on your name in the city. On the other hand, the property circle rate or ready reckoner rate is the minimum rate at which any transactions related to property registration are allowed. The circle rate in Mumbai is handled by the Stamps and Registration Department.

How to Calculate Property Value in Mumbai

  1. Determine the property’s built-up area. It is usually mentioned in the property documents.
  2. Pick the right property type. Options include flat, plot, house, builder floor, etc.
  3. Find the latest circle rates in Mumbai for the locality or area that the property is located in.
  4. Calculate the minimum assessment value based on the ready reckoner rate.
    • For a house construction on plot: Plot Area (in sq. metres) X circle rate for flats in the area (in Rs./sq. metres) X 1.25
    • Residential flats and apartments: Calculate the sum of ‘a’, ‘b’, and ‘c’.
      1. Flat’s built-up area (in sq. meters) X applicable circle rate (in Rs./sq. meter) x 1 + premium on floor rise
      2. Open car parking slots X 40% of the circle rate
      3. Covered car parking slots X 25% of the circle rate
  5. The legal guardian of applicants must comply with the income criteria set by different lending institutions
  6. No need to submit any collateral to avail credit through this scheme

Specific Vidya Lakshmi loan terms and conditions also allow eligible students to apply for a second time.

Factors That Affect the Stamp Duty

There are 6 main factors that affect the stamp duty levied on any given property. For a better understanding of these factors, read on.

  1. The Owner’s Gender: In several states across India, the respective state government offers special concessions or deals to women. These incentives promote property ownership among women. For example, in Punjab, male owners must pay 7% stamp duty, whereas female owners are charged only 4%.
  2. Age of the Owner: Senior citizens enjoy the benefit of a subsidised rate in many states.
  3. Property Amenities: The amenities available with a property come at a cost and the government has a list of around 20 such amenities. For instance, if you have a club, gym, sports area or swimming pool, the stamp duty is higher.
  4. Property Purpose: Residential properties enjoy the benefit of a lower stamp duty as compared to commercial properties.
  5. Property Location: Upscale or municipal localities generally attract a higher charge as compared to properties located on the outskirts of the city.
  6. Property Status: Whether a property is old or new plays a role in the final stamp duty amount.

Armed with this information, you’re now better equipped to handle property dealings. This can help when buying property, opting for a mortgage loan, or other such undertakings.