PROPERTY GUIDELINES VALUE

Introduction:

In day to day activities many transactions and transfer of property takes place. i.e. purchase or sale of property. Before any transfer occurs the person who is buying the property will look into various aspects. Such as his or her (buyer’s) financial status, whether the seller has the valid document, whether there is a title flow for the property, whether the property is worth buying, in case of flat the purchaser has to look into the developer’s reputation and goodwill, location, neighborhood of the property, rental and resale of the property, whether the property is worth buying. To know whether the property is worth buying the person has to look into the property guidelines value. Similarly the seller looks into certain things while selling the property. Such as whether the buyer has the purchasing power to buy the property in order to fulfill the contractual obligation and so on. Both the seller as well as the buyer has to be aware of the concept of property guideline value.

Stamp Duty and Property Guideline value:

Stamp duty and Registration fee plays a vital role in the property transactions. The state Government imposes certain charges as well as stamp duty. This stamp duty and registration charges vary from place to place i.e. state to state. Stamp duty is a tax charged by the State Government when a person buys a property, it is compulsory to charge under Indian Stamp Act, 1899. The buyer has to pay a registration fee in order to get his or her name registered. In Tamil Nadu we have a separate act called “Tamil Nadu Stamps Act, 2013”. The stamp and registration fee differs, we have many types of property deeds such as exchange, gift, sale, mortgage, cancellation, partition and so on.

Generally stamp duty is applicable on the property consideration value or the guideline value whichever is higher. In case if the agreement value of the house is Rs. 60 and the guideline value is 50 then the stamp duty will be measured at 60 i.e. the higher value. This stamp duty has certain factors which affect them such as property location, amenities, property type. So it is necessary for a person to know what property guideline value is.????

Property Guideline value:

Guideline value is the market price of land or property. In other words, it is the minimum value in which the property could be sold. This is determined by the State Government. In case of sale or purchase the person should not sell the property less than the Property Guideline Value. The stamps and registration department of any state determines the value of a guideline, this indicates the registration value.?

Before purchasing or buying a property or land people look into various aspects as mentioned above, one among them is property Guideline value. This denotes or helps to know whether it is worth buying it or not. Each and every area or place differs from one another because of many reasons.

Factors affecting property value:

The factors affecting the Property value are accessibility, physical attributes and location.

· ? ? ? ? Accessibility means the availability of basic necessities and economic activities to individuals, for example if an area has more water resources then the value could be high.

· ? ? ? ? Regarding the economic activities the value will be more in case of metropolitan cities as they have more facilities which are easily accessible. In order words, easily accessibility higher the value.

· ? ? ? ? Physical attributes also play an important role in determining the value of the property, say climate, location if it is a nearby bus stand or railway station; sewer lines, water, availability of schools, parks, hospitals, shopping areas the value varies.

· ? ? ? ? In case of building then in spite of these factors the age of the building matters.??

How to find the property guideline value:

Each and every state has its own guideline value checking website. Anyone could look into the property guideline value by logging on to the state’s government website by entering the necessary details regarding the value.

In Tamil Nadu: One could know the property guideline value by logging in into Tnreginet. Steps to be followed to check the property guideline value:

1.? ? ? Firstly, should log in to Tnreginet https://tnreginet.gov.in/portal/

2.? ? ? Click guideline value

3.? ? ? Click for the guideline search duration

4.? ? ? Select the street or survey number

5.? ? ? Select the zone, sub registration office and registration village, in case if you select survey number you should enter additional detail of land category.

6.? ? ? After submitting, it displays all the area along with the cost per foot.

Look into which area you need the guideline value and calculate the same. There was a recent amendment, the government of Tamil Nadu has decided to amend the stamp duty and registration fee, from April 1st 2023, the stamp duty will be 5%.???

Conclusion:?

In order to sell or buy one should know about the concept of property guideline value. One should look into the guideline value in the official website to pay the registration and stamp duty for the property or the transaction. If a person sells the property really less than the property value it will be considered as capital loss and in case of he sells the property more than the guideline value it is considered as capital gain and he or she is bound to pay tax as per Income Tax Act. The housing loans are provided on the guideline value, but there are certain properties which are sold at much higher rate than the guideline, while proving loan amount the person doesn’t take into account the registration and stamp duty. The person seeking a loan has to go in search of other sources to strike the deal. The person who gets a loan has no means to buy the property on his own so he applies for a loan, but as mentioned above the loan is provided on guideline value which won't be sufficient for the person to buy. Therefore there is a need to look into the loan sanction made by creditors. ? ? ? ? ? ? ?