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Documents to be verified before purchase of a Property
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Before you purchase a Property, you have to have a title and document search conducted
by a competent advocate. You cannot do it yourself. You have to use the services
of competent advocate. It is a professional job to be done with professional assistance.
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What is Stamp Duty
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Stamp Duty is a tax, similar to sales tax and income tax collected by the government,
and must be paid in full and on time. A stamp duty paid instrument/ document is
considered a proper and legal instrument/ document.
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Liability to pay the Stamp Duty – whether on the buyer or the seller
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The liability of paying stamp duty is that of the buyer unless there is an agreement
to the contrary.
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Is Stamp Duty payable on the market value of the property or on consideration
as stated in the agreement
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The Stamp Duty is payable on the agreement value of the property or the market value,
whichever is higher.
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Instruments attracting payment of Stamp Duty
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The instruments like Agreement to Sell, Conveyance Deed, Exchange of property. Gift
Deed, Partition Deed, Power of Attorney, Settlement Deed and Transfer of lease attracts
payment of Stamp Duty.
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Period within which an agreement/deed have to be registered
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The property agreement should be registered with the Sub-registrar under whose jurisdiction the property falls, as per the provisions of the Indian Registration Act, within four months of the date of its execution.
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What constitutes completion of the sale
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The transfer of a flat is concluded when you have sale deed/agreement for sale coupled with actual possession which should be followed by registration of flat for concluding a valid sale. The entire amount is paid simultaneously with the handing over of physical possession and signing of the transfer documents.
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