Recently Department of Stamps and Registration, Govt of Karnataka revised guidance value forproperties belong to Bangalore Urban, Bangalore Rural and Ramanagara District. So let us view the heat of the same 🙂
Let us first understand what is the guidance value of property. It is the value below which you can’t register your property. But there are few exception rules to it. Suppose Govt guidance value of the property you are interested to buy is around Rs.10,000 per square feet, but you felt that this is at the higher side than the market rate. If you showed the value is below than the guidance value then sub-registrar refers it to district registrar. District registrar after reviewing the property fix the guidance value. This value is final and you need to pay the tax on this. It may be equal or higher to guidance value. But usually the market value will be higher in all cases when one look at the madness about property investment.
In guidance value there are two types.
1) Land Value-This value is only for lands not for any constructed properties. Hence an open site value is measured as land value.
2) Composite Value-This value is for the constructed properties where it includes both land value as well as the value of buildings.
In Bangalore property guidance values are revised to the tune of 40% to 100% in some areas. It was revised last time in September 2011. By raising this value Govt is indirectly increasing its revenue. Also there is an expectation that the Govt is going to increase stamp duty and registration fee. Currently in Karnataka State stamp duty is 5% and 1% as registration fee. So total one need to pay 6% as the cost of registration.
Few feel that time being it will impact property investment. But going by the craze of the investors, I feel it as a temporary pause. Usually builders and developers increase their margins too based on the revision of guidance value. So it directly increases the property value in Bangalore. Let us find out guidance values of few popular areas of Bangalore (open sites).
As of now I come to know that the revised values will be applicable from August 12th 2013 (Times of India dated August 13th 2013). But there is no updation available from the Govt site. Also the above prices still showing as temporary rates subject revise based on the public opinion.
Teja
Hi,
Thank you for helping most people with their queries.
Can you help me with the Govt. Guidance value for the location – BBMP KHATA NO. XXXXXXXXXXXXXXX – Muncipal No.37,
Panathur Village, Varthur hobli
Basavaraj Tonagatti
Teja-I can’t for individual properties. Sorry.
Patur
Recently I bought a property in Rajarajeshwari nagar got loan approval and done with all formalities with the builder now its a time for registration wondering how much the cost for registration Can anybody help on this, please, as i live abroad not sure how much cost is incurred.
Basavaraj Tonagatti
Patur-Refer my recent post “Flat, land and Property Stamps and Registration charges in Bangalore and India“.
Pradeep Gorai
Hi,
I need help. I registed one flat with around 1.8 lacks before march 2016 now builder is telling it is increased and required 3.4 lacks for registration from April 2016. Could you please help on the same. Is it correct that value of the property is increased with the double amount?
Basavaraj Tonagatti
Pradeep-Sadly there is no specific guidance of how your landlord or any such landlords arrive at values. If you need that property, then go ahead. Otherwise stay away.
Harish
How do I find out the guideline value for a property in particular road. I’m looking for a property say in 4th Cross, 14th Main, HAL 3rd stage. I could see in different websites the guideline value for an area like HAL 3rd stage. With in that depending on the Road width and nearness to main road access, does the guideline vary? How much is the approximate ratio of guideline to market value in Bangalore. Your inputs will be really helpful.
Basavaraj Tonagatti
Harish-You have to check it in Govt portal. If you not found the same, then contact the concerned register office.
sujith
I have shortlisted one resale flat to buy in Vinayaka nagar, Murugeshpalya near wind tunnel road. How should i arrive on the value of the flat to negotiate with the seller. it’s a 2 BHK flat of area 1250 sq ft and G+2 storey building and 12 years old. Total area of the building is 4800 sq ft and in each floor 4 houses are constructed. It is in between Total mall and old HAL airport. Kindly suggest me.
Basavaraj Tonagatti
Sujith-It is hard to analyze. Because it is one of BIGGEST sector which not have any guidelines to arrive at true price.
Mohammed
What will be the stamp duty / registration charges if we are going to purchase a resale flat which is 8 years old in Bangalore.
Basavaraj Tonagatti
Mohammed-Contact the sub-register office of your area.
Gayathri
I purchased 30X40 site in Srikantapura village and registered in Madanayakana halli registrar office last week, i did not paid full amount, i have given cheque upto June, some one is telling without paying full amount, REGISTRATION will not be done, but they did i to me. how please let me know
As it is my first property, i was not aware much about the land, one of my family friend guided me, i dont know whether he helped me or cheated, because i paid 1100 per sq feet and registration charges Rs. 96,000.00, after that i came to know i paid more and offcourse i have to take some loan from bank, as we are not rich people.
I need below clarification
1) as this is GRAM TANA site any problem in future
2) without paying FULL amount, registration is possible?
3) Any precaution, any papers to be collected from them
Please help me out as i am not having proper food and sleep, because i am afraid whether these people will cheat be as i paid 8 lakhs already, and i have to pay still 5.2 lakhs, ple………. guide me
Basavaraj Tonagatti
Gayathri- 1) No problem if it is approved plan and NA conversion done with proper ownership. 2) Payment must be according to deed. I don’t know how much mentioned in deed and how much you paid to owner of property. Also how can he sign on deed without getting his full payment? Confusing question to me. 3) You have to check all documents before buying, if possible an expert lawyer.
Raj V N
Hi Basav,
I am purchasing a constructed house at NGEF Layout (Sadanandanagar). The site was alloted to current owner via NGEF Employees housing Society. Its having A khata, Title Deed, ECs, Extracts, PC,… all is fine. But, as i am applying for loan with SBI, the bank is asking for Conversion letter. The owner also does not have this and it looks like none of houses there have this particular letter. Owner has been staying in the property from 93 onwards and the site was alloted during 86-87. Not sure why the bank needs this, when all the papers are fine.
Owner and myself, also tried approaching BDA office, DC’s office for this letter. BDA says, conversion will be in DC’s office, where as when contacted the DC office, they there is no conversion for this.
Not sure, how to get this or any alternate letter to fulfill banks needs?
Regards
Raj
Basavaraj Tonagatti
Raj-Not sure what went wrong in your case. But yes, banks need conversion letter.
Rajesh
I am planning to buy a flat located at Off Sarjapur road near Carmelaram Railway Station(After Flyover/Back side of Decathlon), Builder mentioned that its BDA approved-Panchayath A katha (Builder informed that this land in Koadthi Village So Panjayath A katha we have and this land not yet under BBMP limit, It may come in future). Also builder mentioned that this project approved all major banks like SBI,HDFC,LIC, ICICI, IDBI and Axis Bank. Is it right choice to buy this flat? Kindly suggest.
Basavaraj Tonagatti
Rajesh-Without knowing much about property documents, how can I guide you? Better to contact any expert lawyer for the same.
Rajesh
Just Need to understand that buying BDA approved project with Pachayath A katha flat having any problem in current and in future or not? also Can You suggest any expert lawyer name to whom I can approach with documents?
Basavaraj Tonagatti
Rajesh-If documents are legal then no problem. Sadly I don’t know any lawyer whom I can say as EXPERT 🙂
Kumar
Hi,
I am about to buy a flat near whitefield area. Will the guideline value be increased from November 1st 2014? Or will there be some time (10-15 days atleast) after the decision is being published? Also what is the best way to get the update immediately if the guideline value gets increased – Any link or website ?
Thanks,
Kumar
Basavaraj Tonagatti
Kumar-I am not sure when they increase the value for this year.
Madhav
Hi Basavaraj,
This is my first property and I have to register my flat this this week. Cost of my flat is 2400000. How much will be the tax, vat and what is the total cost of registration please.
I know nothing about properties and I am in serious need of help.
Regards
Madhav
Basavaraj Tonagatti
Madhav-First thing if you don’t know anything about properties then how you shortlisted? Regarding expenses, I suggest you to visit the sub-register office. They guide you.
Sumesh
I am planning to by a B Khata Land. Is it a write decision.
Basavaraj Tonagatti
Sumesh-A Khata or B Khata will alone is not a decisive factor in buying land. Please first understand your requirement. If land suites then go ahead.
Dhiren
SBI home loan/land loan process, including documents, what is the best fin institution for land loan(no construction plan, investment purpose) in BMRDA area.
Basavaraj Tonagatti
Dhiren-Can you elaborate more like what your exact query is?
Arun K
Can you also post all kinds of charges one needs to pay while buying a new flat?
like
VAT
Service tax
registration (you mentioned its 6%)
Any others?
Basavaraj Tonagatti
Arun-Will definitely write a post on this.
anand
Can a GPA holder pay property taxes in his name or it has to be paid in the name of person who gave the GPA
Basavaraj Tonagatti
Anand-He can pay but name should of property owner. GPA is a mere acting person, he can’t claim ownership.
anand
Thanks for the reply, one more similar query, only with GPA can anyone get ‘B’ khata in his name or he has to produce the title deed of the person who gave the GPA?
Basavaraj Tonagatti
Anand-As I told earlier, GPA is just an acting body to execute few transactions but not the owner of property. So you can get the khata but not in your name.
vishvajit
Hi
Just wanted to understand, how i will know whether the Khata that i have for my property is KHATA A or KHATA B.
Please help me to understand the same
Kind regards
Basavaraj Tonagatti
Vishvajit-It will be mentioned in khata extract.
vishvajit
Hi
I just checked in Khata certificate and khata Extract as well.. it was not mentioned anywhere.. It has Unique Property Identification number allotted (PID number allotted)
Please guide
Thanks
Basavaraj Tonagatti
Vishvajit-Is there any mention in PID details?
vishvajit
Hi
No, it just says.. this certifies that khata of this property belongs to……….. …with PID no……
Please refer to this PID number for further correspondance.. BMP
Basavaraj Tonagatti
Vishvajit-In that case better to contact your lawyer by showing them the land records. Because I can’t guide you without going through land records.
Vikas Arora
How does one find out the govt. rate to be used for registry when buying a resale flat in Bangalore. I am looking at buying one near Kundanahalli gate (near Varthur main road). I will appreciate your thoughts. I also want to find ourt do you provide services to take care of all the lagal steps to buy a flat in Bangalore? Thanks for your help.
Vikas
Basavaraj Tonagatti
Vikas-For resale flats there is a different guideline. You visit the Govt. site on the same and you will find information. If not then let me know.
Abrar Shabandri
Hi recently brought a investment property in Central Bangalore it is 15 year old basic apartment in a good area what surprised me is the guideline value is around 7500 per sqft plus carp parking. 250000 so the guideline value according to lawyer is in excess of 1.3 cr however I purchased the apartment for 95 Lakh so ended up paying stamp duty on the guideline value
My issue is yes new apartment inside 5 years in the area i brought is anywhere between 7500 to 14000 depending on the project however the flat I brought is nowhere near 7500 value
In chennai old apartment guideline value is calculated on the age of the building the UDS factor which is fairer
In case if Bangalore it is one flat rate for any age flat in the area
Pls advice in this regards
Koshy
Basavaraj,
Do you have any private office ? What’s your email id? Could I know the revised guidance value of Huskur and Gottumaranahalli village in sarjapura hobli, Bangalore ? What are the financial services do you offer? Kindly mail me – Koshy
Basavaraj Tonagatti
Koshy-No I don’t have any office to say as I work from home. I am a Certified Financial Planner so I do offer you the service of fee based financial planning as well as investment planning also.
Boobile George
Is the property registration opened?
Basavaraj Tonagatti
Boobile George-Yes and I don’t know who informed you that registration was stopped.
Boobile George
I meant direct registration is taking place or not…I know that indirect registration is happening.
Basavaraj Tonagatti
Boobile-What do you mean by direct and indirect registration? I am not aware of this. So can you elaborate on this?